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ABSTRACT We argue that education exerts positive external effects on health, beyond the standard internal effects documented in the literature. We implement an innovative approach to control for endogeneity and omitted variables problems,... more
ABSTRACT We argue that education exerts positive external effects on health, beyond the standard internal effects documented in the literature. We implement an innovative approach to control for endogeneity and omitted variables problems, and present evidence for the significant role played by higher education in explaining longevity across countries. Our findings provide empirical evidence in support of our hypothesis of educational externalities on health.
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We use monthly data across fifteen euro-area economies for the period 1985:1-2015:3 to obtain different monetary policy shocks pertaining to more versus less informed individuals. We then investigate how these affect inflation... more
We use monthly data across fifteen euro-area economies for the period 1985:1-2015:3 to obtain different monetary policy shocks pertaining to more versus less informed individuals. We then investigate how these affect inflation expectations of different types of consumers before and after the incidence of the recent Crisis. Shocks obtained based on the assumption that individuals are well informed can have different impact on inflation expectations as compared to shocks obtained based on the assumption that they are not as informed. Moreover, monetary policy can have different effects on inflation expectations for different types of consumers. Finally, monetary policy has different effects on inflation expectations after as compared to before the incidence of the recent Crisis.
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We assess the impact of fiscal and monetary policy shocks on US survey-based consumer expectations within states of low and high public debt. Following an unexpected increase in government spending, consumption intentions rise in the... more
We assess the impact of fiscal and monetary policy shocks on US survey-based consumer expectations within states of low and high public debt. Following an unexpected increase in government spending, consumption intentions rise in the low-debt state and fall in the high-debt state. Overall, such a shock has adverse effects on expectations in high-debt states. Similarly, contractionary monetary policy shocks induce pessimistic expectations in the high-debt state but not in the low-debt state. The estimated responses suggest that higher public debt fuels considerations regarding its repayment, giving rise to state dependencies in the updating of expectations in response to both fiscal and monetary policy shocks.
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ABSTRACT This paper examines the determinants of international technology diffusion across a sample of 127 countries for the period 1961-2011. We measure technology diffusion by the importation of two capital goods categories that embody... more
ABSTRACT This paper examines the determinants of international technology diffusion across a sample of 127 countries for the period 1961-2011. We measure technology diffusion by the importation of two capital goods categories that embody different R&D content: computers and metalworking machinery. We find that economic institutions and political institutions have a large and significant effect on computer imports (that embody a higher R&D content) but not for less technologically-intensive types of capital goods such as metalworking machinery. The role of institutions is mirrored by that of human capital. Together, these results highlight the role of institutions and human capital in facilitating embodied technology diffusion through capital goods imports, more than mere capital accumulation.
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Research Interests: Economics, Development Economics, Econometrics, Productivity, Applied Economics, and 13 moreTechnological change, Social Science Research Network, Endogenous Growth, Steady state, Openness to experience, Endogenous Growth Theory, Scale Effect, Growth rate, Manufacturing Sector, OECD countries, Productivity Growth, Empirical Model, and Output Growth
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Research Interests: Economics, Development Economics, Productivity, Applied Economics, Technological change, and 12 moreSystem Estimation, Endogenous Growth, Steady state, Openness to experience, Endogenous Growth Theory, Scale Effect, Growth rate, Manufacturing Sector, OECD countries, Productivity Growth, Empirical Model, and Output Growth
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Not that different. Based on a unique dataset of semi-annual microeconomic price levels of goods and services across and within countries for 1990:1-2018:2, we show that time-series volatility and cross-sectional dispersion of... more
Not that different. Based on a unique dataset of semi-annual microeconomic price levels of goods and services across and within countries for 1990:1-2018:2, we show that time-series volatility and cross-sectional dispersion of law-of-one-price deviations is similar for pairs of cities within the same country and within the European Monetary Union. Our empirical analysis reveals that inflation and nominal exchange rate volatility/dispersion across locations have a positive impact on the volatility/dispersion across locations of law-of-one-price deviations across the globe. Furthermore, dispersion of law-of-one-price deviations across goods falls when the relative inflation rate between these locations rises, suggesting that the degree of price adjustment in individual product markets within a country has an international component shaped by international trade and arbitrage considerations. According to this measure of price integration, economies within the monetary union are half-way to the level of integration characterizing national economies. Moreover, monetary union membership reduces the volatility of law-of-one-price deviations, taking member countries more than half-way towards the volatility levels characterizing national economies.
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Research Interests: Business, Economics, Public Economics, Political Science, Public Health, and 13 moreAbsorptive Capacity, Best practice, Health Services, Basic Education, Life Expectancy, Educational Attainment, Tertiary Education, Aggregate Productivity, Determinants of Health, Empirical Analysis, Public Policy, Health Outcome, and Externality
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The full impact of trade costs in segmenting product markets cannot be captured by considering aggregate prices or in the absence of information on the direction of trade. We address this problem by utilizing product‐specific prices,... more
The full impact of trade costs in segmenting product markets cannot be captured by considering aggregate prices or in the absence of information on the direction of trade. We address this problem by utilizing product‐specific prices, cross‐sectional productivity indices, and bilateral trade flows, allowing us to identify the probable source of any one product. We show that trade costs in the form of transportation and distribution costs are important in determining international price differences and segmenting international markets. Physical distance relative to the origin has a precisely estimated positive impact on international deviations from the Law‐of‐One‐Price that is larger than estimates that do not account for the origin of each product. Based on our benchmark estimates, the price elasticity of distance was around 10% in 1990. (JEL F4)
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Research Interests: Economics, Immigration, Prices, Wage, E, and 4 moreF, J, Price Convergence, and International factor mobility
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Research Interests: Economics, General Relativity, Economic Theory, European Union, Latin American Economic History, and 11 moreValue Added Tax, Exchange rate, Price Dispersion, Weed Control, Cross Section, Purchasing Power Parity, Real Exchange Rate, Goods and Services, Law of One Price, Weighted Averaging, and Nominal Exchange Rate
Using a panel of over 5,000 local currency prices of retail goods and services sold in the capital cities of Europe in 1975, 1980, 1985 and 1990, we characterize the behavior of average relative prices — ‘real exchange rates ’ — as well... more
Using a panel of over 5,000 local currency prices of retail goods and services sold in the capital cities of Europe in 1975, 1980, 1985 and 1990, we characterize the behavior of average relative prices — ‘real exchange rates ’ — as well as dispersion around these averages. We …nd that the averages are surprisingly close to what purchasing power parity would suggest. In other words averages of ratios of foreign to domestic prices (across goods for a particular pair of countries) provide relatively accurate predictions of most nominal cross-rates. Variation around the averages, however, is large but is found to be related to economically meaningful characteristics of goods such as measures of international tradeability, the importance of non-traded inputs into production and the competitive structure of the markets in which the goods are sold. Using data on product brands, we …nd that product heterogeneity is at least as important as geography in explaining relative price dispersion. ...
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We study good-by-good deviations from the Law-of-One-Price (LOP) for over 1,800 retail goods and services between all European Union (EU) countries for the years 1975, 1980, 1985, and 1990. We find that for each of these years, after we... more
We study good-by-good deviations from the Law-of-One-Price (LOP) for over 1,800 retail goods and services between all European Union (EU) countries for the years 1975, 1980, 1985, and 1990. We find that for each of these years, after we control for differences in income and value-added tax (VAT) rates, there are roughly as many overpriced goods as there are underpriced goods between any two EU countries. We also find that good-by-good measures of cross-sectional price dispersion are negatively related to the tradeability of the good, and positively related to the share of non-traded inputs required to produce the good. We argue that these observations are consistent with a model in which retail goods are produced by combining a traded input with a non-traded input.