-
作者：Lake, James; Millimet, Daniel L.
作者单位：Southern Methodist University; IZA Institute Labor Economics; Southern Methodist University
摘要：Even if free trade creates net welfare gains for a country as a whole, the associated distributional implications can undermine the political viability of free trade. We show that trade-related redistribution as presently constituted-modestly increases the political viability of free trade in the US. We do so by assessing the causal effect of expected redistribution associated with the US Trade Adjustment Assistance program on US Congressional voting behavior on eleven Free Trade Agreements (F...
-
作者：Bag, Parimal Kanti; Chowdhury, Prabal Roy
作者单位：National University of Singapore; Indian Statistical Institute; Indian Statistical Institute Delhi
摘要：Dynamic strategic interaction between an international donor and a recipient government is analyzed to review the efficacy of aid conditionality for governance reforms in LDCs. It is shown that irrespective of whether the donor can fully commit to the aid program or not, for maximal improvement in governance the aid should be disbursed in increments with each subsequent tranche being conditional on prior reforms, demonstrating aid gradualism. While the attraction of future aid incentivizes aut...
-
作者：Gan, Li; Hernandez, Manuel A.; Ma, Shuang
作者单位：Southwestern University of Finance & Economics - China; Texas A&M University System; Texas A&M University College Station; CGIAR; International Food Policy Research Institute (IFPRI)
摘要：This paper examines the relationship between changes in the minimum wage and firms' export behavior in China using detailed firm-level data of medium and large manufacturing enterprises between 1998 and 2007. We find that a 10% increase in the minimum wage is associated with a 0.9 percentage-points decrease in the probability of exporting goods and a 0.9% decline in export sales, conditional on exporting. These findings are generally robust to alternative estimation methods and data sources. W...
-
作者：Faccini, Renato; Mumtaz, Haroon; Surico, Paolo
作者单位：University of London; Queen Mary University London; University of London; London Business School; Centre for Economic Policy Research - UK
摘要：A two-country business cycle model featuring nominal rigidities, countercyclical mark-ups, rule of thumb consumers and government spending reversals is used to identify inequality predictions that are robust across a range of empirically plausible parameterizations. These robust inequality restrictions are imposed onto a regime-change factor model for the United States and its main trade partners to estimate the international fiscal spillovers. The effects of U.S. government spending on foreig...
-
作者：Garetto, Stefania
作者单位：Boston University
摘要：A large body of empirical work documents that prices of traded goods change by a smaller proportion than real exchange rates between the trading countries (incomplete pass-through). I present a Ricardian model of trade and international price-setting with heterogeneous firms, Bertrand competition and incomplete information. The model implies that: 1) firm-level pass-through is incomplete and a U-shaped function of firm-level productivity and market share; and 2) controlling for firm market sha...
-
作者：Kukharskyy, Bohdan
作者单位：Eberhard Karls University of Tubingen
摘要：Relational contracts - informal agreements sustained by the value of future relationships - are integral parts of global production processes. This paper develops a repeated-game model of global sourcing in which final good producers decide whether to engage with their suppliers in relational contracting and whether to integrate a supplier into a firm's boundaries or deal with the latter at arm's-length. The model predicts that the relative prevalence of vertical integration increases in the l...
-
作者：Greenland, Andrew; Lopresti, John
作者单位：Elon University; William & Mary
摘要：We exploit variation in exposure to Chinese import competition to identify the effect of trade-induced changes in labor market conditions on human capital accumulation in the U.S. from 1990 to 2007. We document large increases in U.S. high school graduation rates in the labor markets most affected by import competition. After controlling for established predictors of high school completion, demographic shifts, and coincident labor market changes unrelated to trade with China, we estimate that ...
-
作者：Kurz, Christopher; Senses, Mine Z.
作者单位：Federal Reserve System - USA; Federal Reserve System Board of Governors; Johns Hopkins University
摘要：In this paper, we use detailed trade and transactions data for the U.S. manufacturing sector to document a new set of stylized facts on the theoretically ambiguous relationship between the volatility of employment growth and the trade exposure of a firm. We find that, on average, firms that export are less volatile than non-traders, while importers are more volatile. The substantial variation we document across trading firms, in terms of the duration of time and the intensity with which they t...
-
作者：Shapiro, Alan Finkelstein; Mandelman, Federico S.
作者单位：Tufts University; Federal Reserve System - USA; Federal Reserve Bank - Atlanta
摘要：We incorporate remittances and micro-entrepreneurship (self-employment) into a small open economy business cycle model with capital and labor market frictions. Countercyclical remittances moderate the decline of households' consumption during recessions. These remittances also are used to finance the startup costs of microenterprises that bolster households' income during economic downturns. We show that the positive income effect from countercyclical remittances also leads to a decrease in sa...
-
作者：Cook, David; Devereux, Michael B.
作者单位：Hong Kong University of Science & Technology; University of British Columbia
摘要：An independent monetary policy and a flexible exchange rate generally help a country in adjusting to macroeconomic shocks. But recently in many countries, interest rates have been pushed down close to the lower bound, limiting the ability of policy-makers to accommodate shocks, even with flexible exchange rates. This paper argues that when the zero bound constraint on nominal interest rates is binding and policy lacks an effective 'forward guidance' mechanism, a flexible exchange rate system m...
