This paper provides evidence on the effect of fiscal stimulus on economic activity in countries with different degrees of institutional quality. The identification strategy makes use of data on military expenditure to instrument government consumption using local lineal projections as presented...

This paper examines the economic effects of employment protection legislation in a sample of developed and developing countries. Implementing a difference-indifferences test lessens the potentially severe endogeneity and omitted variable problems associated with cross-country regressions. This...

This paper examines the economic effects of employment protection legislation in a sample of developed and developing countries. By implementing a difference-in-differences test, we lessen the potentially severe endogeneity and omitted variable problems associated with cross-country regressions....

This paper estimates the elasticity of substitution of U.S. imports using detailed trade data over the 1990-2003 period. The authors use a two-stage least squares framework in order to identify the elasticity parameter of interest. The authors use the elasticity estimates to assess the extent to...