Minutes of the Meeting of the Executive Committee in San Diego, CA, January 2, 2004

 

   The second meeting of the 2003 Executive Committee was called to order at 10:07 A.M. January 2, 2004 in the Cardiff Room of the San Diego Marriott Hotel in San Diego, CA.  Members Present were: Marianne Baxter, Ben Bernanke, Peter Diamond, Jonathan Eaton, Martin Feldstein, Ellen McGrattan, Robert Lucas, John McMillan, Maurice Obstfeld, James Poterba, Christina Romer, Mark Rozenzweig, Andrei Shleifer, John Shoven, and John Siegfried.  Attending as guests were Daniel McFadden, newly elected President-Elect; Angus Deaton and Janet Yellen, newly elected Vice-Presidents; and Janet Currie and Olivia Mitchell, newly elected members of the Executive Committee.  Attending parts of the meeting in order to give committee reports were: Robert Pollak, chair of the Search Committee for Editor of the American Economic Review, John Rust, Chair of the Committee on Electronic Publishing, and Drucilla Ekwurzel and William Goffe, members of the Committee on Electronic Publishing.  Executive Director William Damon and General Counsel Terry Calvani also attended.

 

   Diamond welcomed the newly elected guests and noted that this was the last meeting for Jonathan Eaton, John Shoven, James Poterba, and Christina Romer.  He thanked them for their service to the Association.  Diamond presented Robert Lucas with his AEA Distinguished Fellow Award.  He then asked for approval of the minutes of the previous meeting (April 25, 2003) which had been circulated in advance.  The minutes were approved without change.

 

   Report of the Secretary (Siegfried).  Siegfried reviewed the schedule for sites and dates of future meetings:  Philadelphia, January 7-9, 2005 (Friday, Saturday, and Sunday); Boston, January 6-8, 2006 (Friday, Saturday, and Sunday); Chicago, January 5-7, 2007 (Friday, Saturday, and Sunday); and New Orleans, January 4-6, 2008 (Friday, Saturday, and Sunday).  The Executive Committee meets the day prior to the beginning of the regular meeting each year.

 

   After noting that San Francisco dominated other locations in the 2003 survey of AEA members about site preferences, Siegfried recommended that the Association attempt to meet in San Francisco in 2009.  It was VOTED to authorize the Secretary to negotiate with San Francisco hotels for a meeting on January 3-5, 2009.

 

   There followed a discussion of possible sites for the 2010 and 2011 meetings (Anaheim, Atlanta, Chicago, Denver, and Orlando all expressed interest) and the advantages of booking more than five years forward (including competitive room rates and more site options).  After deciding that it would be wise to book meeting sites more than five years out, it was VOTED to override a decision of the 1975 Executive Committee limiting annual meeting bookings to less than five years forward. The remainder of that 1975 Executive Committee decision was not disturbed, namely that: The Executive Committee should set general guidelines the Secretary should consider in proposing dates and places of the annual meetings.  Working within these guidelines the Secretary should make specific recommendations regarding future meeting times. Once approved by the Executive Committee, the place and dates of a particular annual meeting cannot be changed except under unusual circumstances, and a positive vote of two-thirds of the voting members of the Executive Committee would be required to effect a change. 

 

   The annual program for the 2005 meeting in Philadelphia will include about six field-based poster sessions of 20 presentations each in addition to the usual three-paper sessions.  This should open more slots on the program for AEA members, increasing accessibility for those who submit individual papers. 

 

   Siegfried reported that the editorial offices of the JEL and the AER will be consolidated with the Association's existing JEL/EconLit office in Pittsburgh during 2004.  The move is made possible by technological advances that no longer require staff and editors to work at the same location. The consolidation will relieve the editors of office management responsibilities, reduce transition costs when editors change, enhance reliability of editorial services, and allow the Association to exploit some scale economies.  The Pittsburgh office will move to larger facilities and be renamed to reflect its responsibilities for producing the AER, the JEL, and EconLit.  The editorial office of the Journal of Economic Perspectives will remain in St. Paul, MN.

 

            On behalf of the Committee on Minority Groups in the Economics Profession (CSMGEP), Siegfried reported the outcome of a meeting in Durham, NC among himself, the Association's General Counsel, Terry Calvani, the Director of the Summer Program, Charles Becker, the Chair of Duke's Department of Economics, Thomas Nechyba, and the Chair of CSMGEP, Patrick Mason, who participated by telephone. The meeting considered admissions and scholarship eligibility for the Program.  The Summer Program is open at their home institution’s tuition to minorities and to any student, minority or not, enrolled at Duke, North Carolina-Chapel Hill, North Carolina State, and North Carolina Central Universities.  It is also open at Duke’s tuition to non-minority students from other universities.  Recruitment is aimed at historically black and Hispanic institutions.  Need-based scholarships are awarded only to minorities.  Not all minorities admitted to the Program receive a scholarship.  Current funding is secure through 2004.

 

  Responding to an inquiry from the Executive Committee, the Secretary compared rates for AEA sponsored New York Life term life insurance offered members via Seabury & Smith with alternatives.  Depending on age and lifestyle, AEA insurance is priced attractively for some members, but not for others.  Because it competes with other life insurance options available to members, and because the number of members holding policies has been constant, it was decided that the market test was sufficient to insure the program was competitive.

 

   A proposal from Seabury & Smith to offer travel insurance for overseas members traveling to the U.S. and U.S. residents traveling overseas was considered.  Because travel insurance is conveniently available from other sources, and the proposal did not offer significant advantages, it was VOTED to decline the opportunity to sponsor travel insurance.

 

   The Association currently has the e-mail address of about 16,000 members.  These addresses are used to send information to members no more frequently than four times annually.  The complete list is shared with no one.  Special purpose opt-in lists are available for distribution.  Currently 9,972 members are signed up to receive e-mail announcements about public policy affecting economists or the economics profession, 6,349 for surveys of economists for research purposes, and 2,473 for commercial advertising. 

 

   The Association's first exclusively electronic Directory was "published" in December 2002.  It includes Directory information for about 11,500 members.  "Publication" of the Directory, which is now a perpetual electronic file, consists of an effort to remind members to enter or update their Directory information and the printing and archiving of Directory entries on a particular date.

 

   A member submitted a resolution for the Annual Business meeting asking that the Association: (1) resume the collection of directory information by mail, and (2) publish a printed directory that is mailed to all members.  The complete resolution is in the Minutes of the Annual Business Meeting of January 4, 2004, included in this issue of the AER. The electronic directory currently in use was substituted for the traditional printed directory because the cost of collecting the information for it and the cost of distributing it are less, and it can be updated as individuals' directory information changes.  Three copies of the unedited electronic directory file on January 1 each year are printed for the archives.  To accommodate some of the member's concerns, it was decided to accept pre-print orders for the annual printout of the unedited January 1 file, and also to install on the Association's website periodic directories as of a date certain.  Because the mail collection of directory data and production of print copies mailed to all members is estimated to cost over $200 thousand, the Executive Committee VOTED to exercise its option under the Bylaws to put the resolution to a mail ballot of the full membership if it were to pass at the January 4, 2002 Annual Business Meeting. (It did not pass.)

 

            Siegfried announced that the first meeting of the 2004 Executive Committee would be held in New York City on April 16, 2004.

 

   Search Committee for Journal of Economic Literature Editor (Currie).  The ad hoc Search Committee for Editor of the JEL consisted of Judith Chevalier, Janet Currie (chair), William Darity, James Heckman, Therese McGuire, Maurice Obstfeld, John Pencavel, Bernard Saffran, and Frank Wycoff.  The Committee's charge was to identify a nominee to succeed John McMillan as Editor of the JEL.

 

   Currie reported that the Committee developed a job description for JEL Editor, and then solicited recommendations by means of notices in the Association's journals and a broadcast e-mail delivered to Association members.  The Committee narrowed the suggestions to nine economists who they contacted about the appointment.  Four were sufficiently interested to write a brief statement about goals and opportunities for the JEL. After reviewing the potential candidates, the Committee nominated Roger Gordon to succeed McMillan as Editor of the JEL.  The Executive Committee VOTED to appoint Roger Gordon Editor of the JEL for a term extending through December 2006.

 

   Search Committee for Editor of the American Economic Review (Pollak).  Upon receiving nomination to a 14 year term as a member of the Board of Governors of the Federal Reserve System, Ben Bernanke asked in September 2003 to be relieved of his duties as Editor of the AER as soon as possible.  Shortly thereafter, President Diamond appointed a search committee consisting of V. V. Chari, Susan Collins, Preston McAfee, Olivia Mitchell, Robert Pollak (chair), Christina Romer, Bernard Saffran, Christopher Udry, Robert Willis, and John D. Wilson.  A broadcast e-mail to Association members announced the search committee and solicited recommendations in early December, 2003.

 

   Pollak reported that the Committee received over 50 recommendations and had begun to screen them.  He indicated that the Committee recognizes the advantages of diversity among economics subfields and institutional affiliations of the AER Editor and Co-editors, and that candidates would not be excluded because of affiliation with an institution that publishes one of the primary competitors to the AER.  He expected to have a recommendation for the Executive Committee by April 2004.

 

   Report of the Editor of the American Economic Review (Bernanke).  Bernanke commented on his written report, which is published elsewhere in this issue of the AER.  The AER began to accept electronic submission of manuscripts in early 2003; by the end of the year about 80 percent of new submissions were electronic.  The remainder are scanned and subsequently processed electronically.  This has reduced mailing costs, and also may have contributed to the 20 percent increase in submissions in 2004.  The electronic management of manuscripts has helped to reduce the on-site staff costs for co-editors, and permits the consolidation of the AER production staff with the Pittsburgh office.  The online manuscript management system has also helped to broaden the referee base.  In 2003 1,955 different referees were used, in contrast to about 1,000 in prior years.  Because submissions increased substantially in 2003, the acceptance rate fell below 10 percent again even though the number of pages published rose. Median time to first response has been lowered.  At this point 75 percent of submissions receive a first response in 26 or fewer weeks.  Because of the growth in the number of pages published, the lag between acceptance and publication has declined substantially.  It is now about as short as can be managed practically--approximately five to six months.

 

   The AER Editor assigns each submission to one of five co-editors.  In addition to seeking referees more generally, each co-editor relies on eight to ten members of the AER Board of Editors to referee about one paper per month.  Acting on Bernanke's recommendation, the Executive Committee VOTED to reappoint Craig Burnside, Anne Case, Robert Feenstra, Daniel Friedman, Benjamin Hermalin, Peter Ireland, Rachel Kranton, Enrique Mendoza, Stephen Morris, Thomas Nechyba, and Carmen Reinhart to terms on the Board of Editors ending December 2006, and to appoint Thomas Lemieux, Lones Smith, and Giovanni Maggi to terms on the Board of Editors ending December 2006.   

 

            There followed the routine discussion of the extended time referees take to report and how to reduce it.  It was suggested that personal reminders to delinquent referees sometimes work.  Overall, the period between initial submission to the AER and publication of accepted articles has been reduced from about three years to two years by compressing multiple revisions into one careful revision, and reducing the time between acceptance and publication by expanding the size of issues.  Referee lags, in contrast, have remained constant.

 

   Report of the Editor of the Journal of Economic Literature (McMillan).  McMillan reviewed the main points of his written report, which is published elsewhere in this issue of the AER.  He reported that the editorial staff for articles and book reviews would be consolidated with the remainder of the JEL and EconLit staff in Pittsburgh during 2004. 

 

   McMillan announced that the transition between himself and Roger Gordon would occur on April 1, 2004.  He thanked Drucilla Ekwurzel and Alexander Field, Associate Editors of the JEL for their help throughout his term as Editor.  Acting on McMillan's recommendation, with consultation and advice of Editor-elect Roger Gordon, the Executive Committee VOTED to appoint Daron Acemoglu, Abhijit Banerjee, Richard Blundell, Severin Borenstein, A. Lans Bovenberg, V. V. Chari, Janet Currie, Gene Grossman, Gordon Hanson, Dani Rodrik, Julio Rotemberg, Mark Watson, Jeff Wooldridge, and Luigi Zingales to the Board of Editors for three-year terms ending December 2006.

 

   Diamond then, on behalf of the Association, presented McMillan with a crystal bowl in appreciation for his years of distinguished service from 1998 through 2004 as Editor of The Journal of Economic Literature.

 

   Report of the Editor of the Journal of Economic Perspectives (Shleifer).  Shleifer summarized his written report, which is published elsewhere in this issue of the AER.  He indicated that he hoped to publish more articles on controversial topics, such as the recent one on obesity, and work in progress on terrorism and Iraq.  He thanked Timothy Taylor, Managing Editor of the JEP, and co-editor J. Bradford DeLong, whose term ended in December, 2003.  James Hines was appointed in April 2003 to succeed DeLong.

 

   Acting on Shleifer's recommendation, the Executive Committee VOTED to reappoint Michael Waldman to a three year term as Co-Editor of the JEP ending in December 2006, and to appoint Esther Duflo, Paul Mahoney, Paul Portney, and Michelle White as Associate Editors for three year terms ending December 2006.

 

   Personal information about economists has traditionally been published nine categories in a "Notes" section at the end of JEP: deaths, retirements, foreign scholars visiting the U.S. and Canada, promotions, administrative appointments, new appointments, leaves for special appointments, resignations, and miscellaneous.  Few such announcements are received and published.  Therefore, they are not informative about the profession as a whole.  After discussing the usefulness of various categories to the profession, it was VOTED to discontinue publishing all of the categories except deaths, retirements, and leaves for special appointments.

 

   Report of the Director of Job Openings for Economists (Siegfried). Siegfried reviewed his written report, which is published elsewhere in this issue of the AER.  He reported that new jobs listed in JOE decreased by 3 percent from 2002 to 2003.  In 2003 JOE moved from the University of Texas to the Association's facilities in Pittsburgh, <http://www.aeaweb.org/joe/>.  The Association thanks the University of Texas, especially Peter Wilcoxen, for hosting JOE on its website through June 2003.

 

   Siegfried reported the Budget Committee decided to increase the fee for listing jobs in JOE from $150 per listing to $250 per listing, effective in July 2004.  JOE continues to follow a policy prohibiting listings that express discrimination on the basis of race, color, religion, gender, sexual preference, or physical handicap as adopted by the Executive Committee in 1986.

 

  The 2004 Program (Feldstein).  Feldstein thanked the members of his program committee for helping him organize the sessions for the annual meeting.  He noted that the program committee is now listed at the front of the Program book.

   The 2005 Program (McFadden).  McFadden reported that he had assembled a program committee, and that he planned to revive the tradition of including on the program a series of lectures or panel discussions on new methodologies, literature reviews, and contemporary issues that had occurred for a few years in the 1990s.  He also announced plans for a series of poster sessions in order to increase the prospects for individual paper submissions making the program.

 

   Term Limits for JEL Editor (Diamond).  Diamond noted that the Search Committee for Editor of the AER three years prior was asked to make a recommendation concerning term limits for the editors of both the AER and JEL, but apparently overlooked the JEL editor when it recommended a three-term (nine year) limit on the AER editor.  He also asked whether the Associate Editor of the JEL responsible for book reviews should be subject to a term limit.  After a brief discussion, Diamond asked the Advisory Committee on Editorial Appointments to consider the question of term limits for JEL editors and make a recommendation to the Executive Committee at the next meeting.

 

   Economists' Database (Diamond). Diamond introduced a proposal from the Econometric Society that the AEA join it in developing a searchable multi-society database of economists identified by narrow fields of interest for the purpose of finding referees for submitted manuscripts. The idea would be to delineate a set of field categories that are more detailed than JEL classification codes, which is the basis for the existing large database linked to Editorial Express, the manuscript management program used by AER.

 

   Bernanke commented that in order to be useful the field identifications would have to be fairly finely drawn, and what he finds most useful in identifying referees for the AER are quick links to economists' curriculum vitae, from which he can determine if the prospective reviewer's interests are matched fairly closely to the specific topic of a paper. It was decided not to participate in what was envisioned as a costly effort with marginal benefits.

 

   Electronic Working Paper Archive (McFadden and Rust).  Diamond asked McFadden and the  Committee on Electronic Publishing, chaired by Rust, to assess a proposal from the Econometric Society (ES) suggesting collaboration among the AEA, ES, and European Economic Association (EEA) to create a working paper archive that emulates the Los Alamos physics archive.  The Committee concluded that the ES proposal was redundant because working paper archives of the type envisioned and large scale distributed databases such as Research Papers in Economics (RePEc) and Social Science Research network (SSRN) already exist.  It was concluded that improving search capabilities over existing working papers would add more value than increasing the number of working papers available.  The Committee, however, offered several alternative electronic publishing initiatives and forms of cooperation that might be valuable.

 

   EconLit indexes numerous working papers series and includes links to the papers’ full text when available.  These citations had been provided to the Association by Cambridge University Press Abstracts (CUPA) until December 2003, when the Association terminated its contract with CUPA because the cost was high, and delivery of citations tardy.  The plan is to continue to include citations to working papers in EconLit, but to do the work at the Association's Pittsburgh office.  After a discussion of the pros and cons of including as many working papers as possible in EconLit versus including only working papers thought to be of higher quality, it was decided to advise the JEL/EconLit staff to maintain and possibly increase quality controls on the working papers included in EconLit by limiting the working paper series that are included to those known to be of high quality.  The Executive Committee asked the EconLit staff to report back to it a list of the working paper series that will be included in EconLit in the future.

 

   A discussion of whether the Association should collect pre-print working papers of a broad array of published economics articles and make them broadly available evolved into a decision to collect electronic files of papers presented at the AEA annual meeting and install them on an Association server, commencing with the 2005 meetings.  Whether access to the annual meeting papers would be open to everyone or limited to Association members was not resolved.

 

   The AER currently requires authors of empirical papers to archive their data on the password protected AER website (except in cases where practical issues, such as proprietary data or very large data sets, make this impossible); so far only a few have done so because only a few papers have been published since the policy was adopted.  Many of the forthcoming papers will include such data appendixes.  After discussing the trade-off between the cost imposed on authors of empirical work by asking them to prepare their data so that a variety of users can access them effectively, and the benefits of replication and scientific understanding that arise from broad data dissemination, it was decided to endorse the AER’s existing policy of asking authors of empirical papers for their data before the paper is published, and posting the data on the website when practical.  Regarding papers published before this policy was introduced, it was suggested that the AER help encourage compliance with requests for data pertaining to papers published before the data-posting policy was introduced.  To allow the AER to do this, people requesting data underlying published articles are encouraged to copy the AER Editor when writing to an author with a data request.

 

   Finally, it was agreed that Diamond would explore with ES and EEA whether the three Associations might wish to cooperate further with RePEc, including possibly subsidizing it, and/or providing RePEc links to the papers presented at the annual AEA meetings (which would imply that they are not password protected).  RePEc is an informal voluntary organization that collects links to a wide array of databases of varying quality, including many working papers.

 

   Report of the Treasurer (Siegfried).  Siegfried presented the proposed 2004 budget, which is published in Table 1 accompanying his report in this issue of the AER.  It projects an operating surplus of $9 thousand, investment income of $574 thousand, and an overall surplus for 2002 of $583 thousand.  It was VOTED to approve the budget.  The Association's net unrestricted assets on September 30, 2003 were $8.1 million, up $1.6 million from September 30, 2002.

 

   The breakeven operating budget proposed for 2004 reflects a two year effort to boost Association revenues and control costs.  From 2002 through 2004 we have increased the price of library subscriptions to our journals by $100 per year, increased EconLit prices by about 25 percent, and began charging employers for listing jobs in JOE.  Together these three price changes have boosted revenues by about $1 million per year. 

 

   -----Thereupon, at 3:46 pm it was VOTED to enter into Executive Session.

 

   There being no further business to conduct, it was VOTED to adjourn at 4:35 pm.

 

 

                                                                                                Respectfully submitted,

                                                                                                JOHN J. SIEGFRIED, Secretary

 

 

 

 

 

 

 

 

 

 

 

Includes revisions through January 24, 2004