A Critical Review of the Literature on Nutritional Labeling

A comprehensive overview and critique of the nutrition labeling literature is provided. Studies examining the design and features of label formats and their impact on consumers being better informed and engaging in healthier behaviors are examined to summarize available knowledge in the field. The review suggests that while the extant literature has provided worthwhile critiques of the Nutrition Labeling and Education Act in terms of meeting its stated goals, as well as other general insights, it allows only for very tentative and conditional statements about factors related to the “bottom line” effectiveness of nutritional labeling. The outcome of the review suggests that a more holistic view of nutritional labeling is needed. Suggestions for future research that focus on both conceptualizations of the studies as well as methodology are made.     

Crime and Punishment and Corruption: Who Needs “Untouchables?”

Becker's result that fines should be maximized is also applicable to some social environments where law enforcers are corrupt. If the regulated activity is legal, the principal may efficiently deter crime without an anti‐corruption unit. An opportunistic anti‐corruption unit, even when corrupt, becomes useful for the principal when the activity is illegal, since the principal's goal of maximizing fines motivates the unit to collect bribes from the enforcer, which subsequently induces the enforcer to be nearly completely honest, minimizing corruption. Therefore, we show that there is not necessarily an infinite regress originating with the puzzle of who polices the police.     

Fundamental Economic Shocks and the Macroeconomy

We ask how macroeconomic and financial variables respond to empirical measures of shocks to technology, labor supply, and monetary policy. These three shocks account for the preponderance of output, productivity, and price fluctuations. Only technology shocks have a permanent impact on economic activity. Labor inputs have little initial response to technology shocks. Monetary policy has a small response to technology shocks but "leans against the wind" in response to the more cyclical labor supply shock. This shock has the biggest impact on interest rates. Stock prices respond to all three shocks. Other empirical implications of our approach are discussed.