Showing 1 - 10 of 8,004
We construct a model of revolution and transition to democracy under individualistic and collectivist cultures. The main result is that, despite facing potentially larger collective action problems, countries with an individualistic culture are more likely to end up adopting democracy earlier...
Persistent link: https://www.econbiz.de/10013023685
This paper demonstrates that failures in monetary policy arise not just from dynamic inconsistency, but more importantly, from imperfect understanding of the economy and the effects of policy. Using recent and historic episodes from the United States and abroad, we show that limited knowledge on...
Persistent link: https://www.econbiz.de/10013242907
We revisit the debate over whether political institutions cause economic growth, or whether, alternatively, growth and human capital accumulation lead to institutional improvement. We find that most indicators of institutional quality used to establish the proposition that institutions cause...
Persistent link: https://www.econbiz.de/10013227522
-specific characteristics such as the level of political freedom are taken into account. Political freedom is shown to explain terrorism, but it … does so in a non-monotonic way: countries in some intermediate range of political freedom are shown to be more prone to … terrorism than countries with high levels of political freedom or countries with highly authoritarian regimes. This result …
Persistent link: https://www.econbiz.de/10013243972
specialization of countries within GVCs in a world with barriers to international trade. With costly trade, the optimal location of … trade costs affect the extent to which various countries participate in domestic, regional or global value chains, and …
Persistent link: https://www.econbiz.de/10012955438
How large are the intra-national trade costs that separate consumers in remote locations of developing countries from … to estimate trade costs, we: (i) work exclusively with a sample of goods that are identified at the barcode-level (to … in our sample (to focus only on the pairs of locations that actually identify trade costs); and (iii) use estimates of …
Persistent link: https://www.econbiz.de/10013017931
What drives globalization today and in the past? We employ a new micro-founded measure of bilateral trade costs based … on a standard model of trade in differentiated goods to address this question. These trade costs gauge the difference … between observed bilateral trade and frictionless trade. They comprise tariffs, transportation costs and all other factors …
Persistent link: https://www.econbiz.de/10013224437
This paper surveys the measurement of trade costs --- what we know, and what we don't know but may usefully attempt to … find out. Partial and incomplete data on direct measures of costs go together with inference on implicit costs from trade … flows and prices. Total trade costs in rich countries are large. The ad valorem tax equivalent is about 170% when pushing …
Persistent link: https://www.econbiz.de/10013246402
This paper argues that openness to new, unconventional and disruptive ideas has a first-order impact on creative innovations-innovations that break new ground in terms of knowledge creation. After presenting a motivating model focusing on the choice between incremental and radical innovation,...
Persistent link: https://www.econbiz.de/10013034169
This paper explores the practice of mortgage refinancing in a dynamic competitive lending model with risky borrowers and costly default. We show that prepayment penalties improve welfare by ensuring longer-term lending contracts, which prevents the mortgage pools from becoming disproportionately...
Persistent link: https://www.econbiz.de/10013135393