We examine the role of demand composition in explaining the trade collapse and recovery during the ongoing covid-19 crisis. We apply an import-intensity-adjusted measure of demand to examine import trends in 40 advanced and emerging economies over the period 1Q95 to 4Q20. We focus on the crisis...

The increase in the area cultivated with coca in Colombia has cast doubt on the country's anti-drug strategy and has encouraged skepticism about the possibility of a complete and definitive peace. Furthermore, this perception of failure has given rise to policy proposals based on the idea that...

In our paper, we provide a review of the literature to identify the main transmission channels through which geopolitical risks (GPR) influence m a cro-financial st ab ility. We be gi n by analyzing the existing measures of geopolitical tensions and uncertainty, showing that GPR impacts economic...

This paper proposes a new identification strategy to estimate the causal impact of illicit drug markets on violence using a panel of Colombian municipalities covering the period 1994-2008. Using a UNODC survey of Colombian rural households involved in coca cultivation, we estimate the...

We model the war on drugs in source countries as a conflict over scarce inputs of successive levels of the production and trafficking chain. We explicitly model the vertical structure of the drug trade as being composed of several stages, and study how different policies aimed at different...

I study the causal effect of the foreign aid for development assistance —implemented by the U.S. Agency for International Development (USAID)— on the intensity of municipality-level armed conflict in Colombia, for the period 2009-2013. To address potential endogeneity biases, I use a...

While force eradication through aerial spraying has large social costs, there is no evidence of the unexpected consequences of alternative development programs. This paper suggests an unintended effect of the largest crop substitution program in the world on political violence exploiting data on...

I study the impact of rebel governance on economic development in rural Colombia. In 1998 the Colombian government created a 42,000 square km demilitarized zone (DMZ) to negotiate with FARC, Colombia's largest and oldest rebel group. Using a spatial regression discontinuity design, I exploit the...

This paper provides a thorough economic evaluation of the anti-drug policies implemented in Colombia between 2000 and 2006 under the so-called Plan Colombia. The paper develops a game theory model of the war against illegal drugs in producer countries. We explicitly model illegal drug markets,...

Highly interconnected global supply chains make countries vulnerable to sup ply chain disruptions. This paper estimates the macroeconomic effects of global supply chain shocks for the euro area. Our empirical model combines busi ness cycle variables with data from international container trade....