We find a significant export wage premium for higher-skilled workers and a significant export wage discount for lower-skilled workers, using a matched employer-employee data set for German manufacturing firms. Estimates suggest that up to one third of the overall skill premia is associated with...

In a recent meta study, Disdier and Head (2008) summarize 103 empirical studies that find that the (absolute value of the) distance coefficient in a gravity estimation of bilateral exports does not fall over time. Including zero-trade flows is suggested as a solution to this "distance-puzzle"...

Sovereign risk is defined as a country?s ability-to-pay and willingness-to-pay its debt. This paper examines how cabinet reshuffles affecting the ministry of finance or economics are perceived by sovereign bond holders in twelve Latin American countries from 1992 to 2005. We find that such...

Central bank governor changes in emerging markets may convey important signals about future monetary policy. Based on a new daily data set, this paper examines the reactions of foreign exchange markets, domestic stock market indices and sovereign bond spreads to central bank governor changes....

We analyze stock market reactions to announcements of political appointments from the private sector and corporate appointments of former government officials. Using unique data on corporate affiliations and announcements of all Senate-confirmed U.S. Defense Department appointees of six...