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Many countries in the developed world are ageing in terms of their distribution of population. Conversely, a number of countries in the south have younger population. India for example, has 60% of its population in the age group of 15-59, with the mean age close to 27 years as of present times....
Persistent link: https://www.econbiz.de/10012999017
In this paper, we consider fiscal competition between jurisdictions. Capital taxes are used to finance a public input and two public goods, one which benefits mobile skilled workers and one which benefits immobile unskilled workers. We derive the jurisdictions' reaction functions for different...
Persistent link: https://www.econbiz.de/10012779045
. Using data from Indonesia, we then test these theoretical conjectures. Our identification strategy relies on a 1997 …
Persistent link: https://www.econbiz.de/10012946588
This paper proposes a novel instrumental variable method for program evaluation that only requires a single cross-section of data on the spatial intensity of programs and outcomes. The instruments are derived from a simple theoretical model of government decision-making in which governments are...
Persistent link: https://www.econbiz.de/10013137512
the constituent ethnic groups. Our theory highlights the role of the local elite in lobbying for policies which favour … non-developmental items, all of which is consistent with our theory …
Persistent link: https://www.econbiz.de/10013249116
We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in an industry. Also, the initial advantage of a country...
Persistent link: https://www.econbiz.de/10014049472
. Using a household fixed effects regression model, we find that while a drought shock increases the likelihood of migration … trade-off between two effects of a shock for a household: loss of income and increase in the need of labor services. We show … that migration increases when the former effect of a shock dominates, it reduces when the latter effect dominates. We …
Persistent link: https://www.econbiz.de/10013250256
We study workers' idiosyncratic earnings risk over the life-cycle using a German administrative data set. Positive and negative earnings shocks both contain a highly persistent component. The variance and average size of positive persistent shocks is decreasing over the life-cycle. The...
Persistent link: https://www.econbiz.de/10012948657
There is increasing evidence that the interaction between shocks and labour market institutions is crucial to understanding the dynamics of employment. In this paper, we show that the inclusion of labour adjustment costs in a trade model affects the impact of exchange rate movements on...
Persistent link: https://www.econbiz.de/10013144390
shock. Third, we present evidence coherent with the idea that more leveraged sectors experience larger employment volatility … in normal times deep capital markets lead to tight labor markets. After an adverse liquidity shock, firms that rely much …
Persistent link: https://www.econbiz.de/10013099747