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Essays On Inequality And Macroeconomic Stability, Thomas Hauner 2017 The Graduate Center, City University of New York

Essays On Inequality And Macroeconomic Stability, Thomas Hauner

All Graduate Works by Year: Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters. . .

Chapter 1: Aggregate Wealth and Its Distribution as Determinants of Financial Crises: Panel Evidence This essay investigates the relationship between wealth inequality and financial crises across a panel of nine advanced economies over the past 100 years. While substantiation of a role for income inequality is ambiguous in the literature, evidence is presented suggesting a unique capacity for the accumulation of assets to increase the likelihood of a future financial crisis episode. Testing long-run panel data with a reduced form, two-way fixed effects model, estimates suggest that increasing wealth inequality, in an economy with ...


Unequal Exchange In Global Trade: Theoretical And Empirical Issues, Andrea Ricci 2017 Università degli Studi di Urbino

Unequal Exchange In Global Trade: Theoretical And Empirical Issues, Andrea Ricci

Andrea Ricci

Presentation at the Eighth IIPPE Annual Conference in Political Economy.
Berlin School of Economics and Law.
Berlin. September 13, 2017


Before International Tax Reform, We Need To Understand Why Firms Invert, Michael S. Knoll 2017 University of Pennsylvania Law School

Before International Tax Reform, We Need To Understand Why Firms Invert, Michael S. Knoll

Faculty Scholarship

A wave of corporate inversions by U.S. firms over the past two decades has generated substantial debate in academic, business, and policy circles.

The core of the debate hinges on a couple of key economic questions: Do U.S. tax laws disadvantage U.S.-domiciled companies relative to their foreign competitors? And, if so, do inversions improve the competitiveness of U.S. multinational firms both abroad and at home?

There is unfortunately little, if any, empirical work directly determining whether U.S.-based MNCs are currently tax-disadvantaged compared to their foreign rivals, or measuring the amount by which (if ...


Comparative Advantage, Capital Destruction, And Hurricanes, Martino Pelli, Jeanne Tschopp 2017 Université de Sherbrooke

Comparative Advantage, Capital Destruction, And Hurricanes, Martino Pelli, Jeanne Tschopp

Martino Pelli

The comparative advantage of countries evolves over time, yet firms do not continuously adapt their production structure to this evolution. This slow adaptation may be due to high adjustment costs, such as those associated with the disposal of existing physical capital. In practice, these costs may explain why we observe that countries export goods at both ends of the comparative advantage spectrum. This article investigates what happens if the cost of adjusting to the dynamics of comparative advantage is unexpectedly reduced. We use hurricanes to evaluate whether a negative exogenous shock to firms’ physical capital leads to a reorganization of ...


Is "Help" Helpful?: Analyzing Foreign Aid In Context Of Scale, Catherine Hull 2017 Duquesne University

Is "Help" Helpful?: Analyzing Foreign Aid In Context Of Scale, Catherine Hull

Undergraduate Research and Scholarship Symposium

Foreign aid comes in many forms. Foreign aid ranges from large-scale disaster relief to small-scale individual projects within communities. Most aid efforts have the same goal – to help those who would benefit from assistance. This case study addresses the question: what form of ‘help’ is helpful? Which type of aid best achieves what it sets out to accomplish?

To directly analyze the effect of foreign aid on a region, the water-conscious organization Pure Thirst traveled to the rural community of Olkokola, Tanzania. Pure Thirst worked alongside the community members to provide a form of humanitarian aid: improved water services to ...


Cooperation Is Key To Building China’S Bay Area, Singapore Management University 2017 Singapore Management University

Cooperation Is Key To Building China’S Bay Area, Singapore Management University

Perspectives@SMU

Guangdong-Hong Kong-Macao Greater Bay Area is expected to surpass the Tokyo Bay Area or San Francisco Bay Area in ten years, if the cities in the region can leverage their strengths, streamline their coordination mechanism and speed up the economy integration,” said Dr. Tse Kwok-leung, who currently serves as head of Economics and Policy Research at the Bank of China (Hong Kong) Limited. Dr. Tse was speaking at a seminar themed “How to Build a World-class Guangdong-Hong Kong-Macao Greater Bay Area” organized by the Hong Kong General Chamber of Commerce in July 2017.


Exchange Rate Induced Export Quality Upgrading: A Firm-Level Perspective, David C. Parsley, yong Tang, Cui hu 2017 Nanjing University, China

Exchange Rate Induced Export Quality Upgrading: A Firm-Level Perspective, David C. Parsley, Yong Tang, Cui Hu

David C. Parsley

This paper explores the impact of exchange rate fluctuations on exported product quality.
Existing studies of quality upgrading stress the link between home country depreciation and increased access to export markets. Our focus in this study is on the complimentary effect of an import currency appreciation (i.e., the domestic currency appreciates relative to the sourcing country’s currency). Our main finding is that firms upgrade their export quality in response to an import currency appreciation. We first develop a partial equilibrium model to reveal the mechanism: an import currency appreciation that makes imported intermediates cheaper allows firms to switch ...


Trade Invoicing In Major Currencies In The 1970s-1990s: Lessons For Renminbi Internationalization, Hiro Ito, Kawai Masahiro 2017 Portland State University

Trade Invoicing In Major Currencies In The 1970s-1990s: Lessons For Renminbi Internationalization, Hiro Ito, Kawai Masahiro

Hiro (Hiroyuki) Ito

In this paper, we investigate how much a major currency is used for trade invoicing by focusing primarily on the experiences of the U.S. dollar, the Japanese yen, and the Deutsche mark (DM) in the 1970s through the 1990s. We then attempt to draw lessons for China’s renminbi (RMB) internationalization. Our data on the shares of the three major currencies in export invoicing show that the dollar was unequivocally a global invoicing currency, and that the DM was the most important regional currency in Europe while the yen was never a global or a regional currency. DM invoicing ...


The “Impossible Trinity” Hypothesis In An Era Of Global Imbalances: Measurement And Testing, Joshua Aizenman, Menzie David Chinn, Hiro Ito 2017 University of California, Santa Cruz

The “Impossible Trinity” Hypothesis In An Era Of Global Imbalances: Measurement And Testing, Joshua Aizenman, Menzie David Chinn, Hiro Ito

Hiro (Hiroyuki) Ito

We outline new metrics for measuring the trilemma aspects: exchange rate flexibility, monetary independence, and capital account openness, taking into account recent substantial international reserve accumulation. Since 2000, the trilemma variables in emerging markets have converged towards intermediate levels, characterizing by managed flexibility, using sizable international reserves as a buffer while retaining some degree of monetary autonomy. We test the linearity of the trilemma, and find that the weighted sum of the three trilemma variables adds up to a constant. Thus, a rise in one trilemma variable should be traded-off with a drop of the weighted sum of the other ...


Living With The Trilemma Constraint: Relative Trilemma Policy Divergence, Crises, And Output Losses For Developing Countries, Joshua Aizenman, Hiro Ito 2017 University of Southern California

Living With The Trilemma Constraint: Relative Trilemma Policy Divergence, Crises, And Output Losses For Developing Countries, Joshua Aizenman, Hiro Ito

Hiro (Hiroyuki) Ito

This paper investigates the potential impacts of the degree of divergence in open macroeconomic policies in the context of the trilemma hypothesis. Using an index that measures the relative policy divergence among the three trilemma policy choices, namely monetary independence, exchange rate stability, and financial openness, we find that emerging market countries have adopted trilemma policy combinations with the least degree of relative policy divergence in the last fifteen years. We find that a developing or emerging market country with a higher degree of relative policy divergence is more likely to experience a currency or debt crisis. However, a developing ...


U.S. Current Account Debate With Japan Then, With China Now, Hiro Ito 2017 Portland State University

U.S. Current Account Debate With Japan Then, With China Now, Hiro Ito

Hiro (Hiroyuki) Ito

This paper examines two U.S. current account deficit episodes, one in the 1980s and the other in the current 2000s, in which Japan and China, respectively, are the current account surplus countries that are criticized for contributing to the deficits. In both periods, U.S. policy makers pointed out the underdeveloped and closed financial markets of the current account surplus countries and advocated for these countries to fix the deficiencies, a position akin to the current “saving glut” argument. In both episodes, the current account surplus countries have criticized the United States for its low saving, especially public saving ...


What Matters For Financial Development? Capital Controls, Institutions, And Interactions, Menzie David Chinn, Hiro Ito 2017 University of Wisconsin-Madison

What Matters For Financial Development? Capital Controls, Institutions, And Interactions, Menzie David Chinn, Hiro Ito

Hiro (Hiroyuki) Ito

We extend our earlier work, focusing on the links between capital account liberalization, legal and institutional development, and financial development, especially that in equity markets. In a panel data analysis encompassing 108 countries and twenty years ranging from 1980 to 2000, we explore several dimensions of the financial sector. First, we test whether financial openness can lead to equity market development when we control for the level of legal and institutional development. Then, we examine whether the opening of the goods sector is a precondition for financial opening. Finally, we investigate whether a well-developed banking sector is a precondition for ...


Clamoring For Greenbacks: Explaining The Resurgence Of The U.S. Dollar In International Debt, Hiro Ito, Cesar M. Rodriguez 2017 Portland State University

Clamoring For Greenbacks: Explaining The Resurgence Of The U.S. Dollar In International Debt, Hiro Ito, Cesar M. Rodriguez

Hiro (Hiroyuki) Ito

This paper investigates the determinants of currency denomination in international debt. Using data on currency shares for international debt securities for 82 countries from 1995 through 2013, we find that while the extent of foreign currency issuance has not changed much since the 1990s, especially for developing countries, the currency composition has shifted, especially between the U.S. dollar and the euro. Before the Global Financial Crisis (GFC) of 2008, the share of the U.S. dollar has been on a downward trend while that of the euro had been on a steady rising trend, but since the crisis, the ...


Price-Based Measurement Of Financial Globalization: A Cross-Country Study Of Interest Rate Parity, Hiro Ito, Menzie David Chinn 2017 Portland State University

Price-Based Measurement Of Financial Globalization: A Cross-Country Study Of Interest Rate Parity, Hiro Ito, Menzie David Chinn

Hiro (Hiroyuki) Ito

We characterize the relationship between ex post exchange rate depreciation and the interest differential for a set of countries that spans both developed and emerging market economies. The measured ex post uncovered interest differentials in terms of both levels and absolute values are then related to measures of trade and financial openness, financial development, government budget balances, institutional development, and exchange rate regimes. We find that there is wide diversity in the coefficient relating depreciations and interest differentials. Some of these differing results can be attributed to differences in inflation volatility, financial development, trade openness, capital account openness, legal development ...


Mexico Consensus Economic Forecast, Volume 20, Number 3, Thomas M. Fullerton Jr., Adam G. Walke 2017 University of Texas at El Paso

Mexico Consensus Economic Forecast, Volume 20, Number 3, Thomas M. Fullerton Jr., Adam G. Walke

Border Region Modeling Project

No abstract provided.


Growing Through The Merger And Acquisition, Jianhuan XU 2017 Singapore Management University

Growing Through The Merger And Acquisition, Jianhuan Xu

Research Collection School Of Economics

The paper studies with an endogenous growth model how the merger and acquisition (M&A) affects the aggregate growth rate. We model the M&A as a capital reallocation process, which can increase both productivity and growth rates of firms. The model is tractable and greatly consistent with patterns observed in the M&A at the micro level. Matching our model to the data, we find that prohibiting the M&A would lead to the reduction of the aggregate growth rate of US economy by 0.1% and the reduction of the aggregate TFP by 5%.


Clamoring For Greenbacks: Explaining The Resurgence Of The U.S. Dollar In International Debt, Hiro Ito, Cesar Rodriguez 2017 Portland State University

Clamoring For Greenbacks: Explaining The Resurgence Of The U.S. Dollar In International Debt, Hiro Ito, Cesar Rodriguez

Cesar M. Rodriguez

This paper investigates the determinants of currency denomination in international debt. Using data on currency shares for international debt securities for 82 countries from 1995 through 2013, we find that while the extent of foreign currency issuance has not changed much since the 1990s, especially for developing countries, the currency composition has shifted, especially between the U.S. dollar and the euro. Before the Global Financial Crisis (GFC) of 2008, the share of the U.S. dollar has been on a downward trend while that of the euro had been on a steady rising trend, but since the crisis, the ...


Hysteresis In Unemployment: Evidence From Latin America, Matias Mednik, Cesar Rodriguez, Inder J. Ruprah 2017 Columbia University

Hysteresis In Unemployment: Evidence From Latin America, Matias Mednik, Cesar Rodriguez, Inder J. Ruprah

Cesar M. Rodriguez

This paper tests the hysteresis hypothesis in unemployment for 13 Latin American countries covering the period 1980-2005. The tests exploit the time series and the cross sectional variation of the series, and allows for cross section dependence and a different number of endogenously determined structural breakpoints. The findings give support to the hysteric dynamic hypothesis for the majority of the countries analyzed. The implications of the results have ramifications regarding macro-stabilization, structural reform, and the design of social safety protection.


The Effectiveness Of Public Development Banks: Designing Good Impact Evaluations, Alessandro Maffioli, Cesar M. Rodriguez 2017 Inter-American Development Bank

The Effectiveness Of Public Development Banks: Designing Good Impact Evaluations, Alessandro Maffioli, Cesar M. Rodriguez

Cesar M. Rodriguez

PDB programs have become a fundamental ingredient of productive development policy strategies in most emerging economies. Although the overall need for these interventions is rarely questioned, academics and policymakers often debate their effectiveness, as well as the optimal approaches and instruments necessary to implement them. Therefore, the need to produce rigorous evaluations of PDBs has become increasingly relevant for both government and civil society (see Chapter 2).

This chapter presents the main concepts and operational arguments regarding the execution of indepth impact evaluations of PDB initiatives and instruments. For a more practical approach, these arguments are presented with examples of ...


The Impact Of Public Credit Programs On Brazilian Firms, Joao Alberto DeNegri, Alessandro Maffioli, Cesar Rodriguez 2017 Instituto de Pesquisa Econômica Aplicada

The Impact Of Public Credit Programs On Brazilian Firms, Joao Alberto Denegri, Alessandro Maffioli, Cesar Rodriguez

Cesar M. Rodriguez

This paper analyzes the effectiveness of public credit lines in promoting the performances of Brazilian firms. We focus on the impact of the credit lines managed by BNDES and FINEP in fostering growth measured in terms of employment, labor productivity and export. For this purpose, we use a unique panel data set developed by the Instituto de Pesquisa Econômica Aplicada (IPEA), which includes information on both firm-level performances and access to public credit lines. This particular data setting allows us to use quasi-experimental techniques to control for selection bias when estimating the impact of the public credit lines. The core ...


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