Conventional difference-in-differences (DID) methods that are used to estimate the effect of a treatment rely on important identifying assumptions. Identification of the treatment effect in a DID framework requires some assumption relating trends for controls and treated in absence of treatment,...

We study how estimators used to impute consumption in survey data are inconsistent due to measurement error in consumption. Previous research suggests instrumenting consumption to overcome this problem. We show that, if additional regressors are present, then instrumenting consumption may still...

The core assumption to identify the treatment effect in difference-in-differences estimators is the so-called Parallel Paths assumption, namely that the average change in outcome for the treated in the absence of treatment equals the average change in outcome for the non-treated. We define a...

The literature has identified at least five approaches to the determinants of the choice of exchange rate regimes: i) optimal currency area theory; ii) exchange rate policy and the absortion of real and nominal shocks; iii) exchange rate rules as a policy crutch in credibility-challenged...

In order to understand what motivates parents to send their children to work, I apply a collective household model introducing child labor explicitly. Using data from Mexico, I estimate the mothers' bargaining power separately from the other parameters of the model. This parameter is then used...

We study how estimators that are used to impute consumption in survey data are inconsistent due to measurement error in consumption. Previous research suggests instrumenting consumption to overcome this problem. We show that, if additional regressors are present, then instrumenting consumption...

By how much do employed households reduce their consumption when the aggregate unemployment rate rises? In Spain during the Great Recession a 1 percentage point increase in the unemployment rate was related to a strong drop in household consumption of more than 0.7% per equivalent adult. This...

The Consumer Expenditure Survey (CEX) offers the most comprehensive consumption data at the consumer level for the United States. Several previous studies have shown a large gap between per-capita consumption from the CEX and the aggregate Personal Consumption Expenditure (PCE) series. While...

In order to understand what motivates parents to send their children to work, I apply a collective household model introducing child labor explicitly. Using data from Mexico, I am able to estimate the mothers' bargaining power separately from the other parameters of the model. I find that an...

The literature has identified three main approaches to account for the way exchange rate regimes are chosen: (i) the optimal currency area theory; (ii) the financial view, which highlights the consequences of international financial integration; and (iii) the political view, which stresses the...