Results

CEP discussion paper

The lifecycle of judicial bias

How does judicial bias arise and persist in the legal system? We trace the lifecycle of judicial bias in India's criminal courts, leveraging the quasi-random assignment of judges to courts and cases. We first document su...Read more...

CEP discussion paper

Sustaining international rules in a multipolar world

We study the sustainability of international trading rules in a multipolar world. A rules-based equilibrium is shaped by three forces. A static temptation to exploit market power undermines cooperation, while two dynamic...Read more...

Journal article

Journal of the European Economic Association:

Innovation union: costs and benefits of innovation policy coordination

What is the scope for international cooperation in innovation policy in economies closely integrated via trade? We address this question by building a two-region innovation-driven growth model with endogenous technology ...Read more...

CEP discussion paper

Equilibrium trade regimes: power- vs. rules-based

Members of the World Trade Organization are increasingly disregarding its rules, raising concerns about the future of the multilateral trading system. To analyze the sustainability of the rules-based trade regime, we dev...Read more...

Blog

Bank Underground:

Forbearance lending as a crisis management tool

The Bank of England Agenda for Research (BEAR) sets the key areas for new research at the Bank over the coming years. This post is an example of issues considered under the Prudential Architecture Theme which focuses on ...Read more...

Journal article

Journal of Public Economics:

Powers that be? Political alignment, government formation, and government stability

We study how partisan alignment across levels of government affects coalition formation and government stability using a regression discontinuity design and a large dataset of Spanish municipal elections. We document a p...Read more...

Journal article

Review of Economic Studies :

The design of teacher assignment: theory and evidence

To assign teachers to schools, a modified version of the well-known deferred acceptance mechanism has been proposed in the literature and is used in practice. We show that this mechanism fails to be fair and efficient fo...Read more...

Journal article

The Review of Economic Studies:

Face-to-face communication in organisations

Communication is integral to organizations and yet field evidence on the relation between communication and worker productivity remains scarce. We argue that a core role of communication is to transmit information that h...Read more...

CEP discussion paper

Innovation union: costs and benefits of innovation policy coordination

We build a two-region endogenous growth model to analyse the gains from innovation policy cooperation in an economic union. The model is calibrated to two blocks of the EU: the old and new members. R&D subsidy coordinati...Read more...

Journal article

The Quarterly Journal of Economics:

The price ain't right? hospital prices and health spending on the privately insured

We use insurance claims data covering 28% of individuals with employersponsored health insurance in the United States to study the variation in health spending on the privately insured, examine the structure of insurer-h...Read more...

Journal article

Psychological Science:

Models of affective decision making: how do feelings predict choice?

Intuitively, how you feel about potential outcomes will determine your decisions. Indeed, an implicit assumption in one of the most influential theories in psychology, prospect theory, is that feelings govern choice. Sur...Read more...

CEP discussion paper

Models of affective decision-making: how do feelings predict choice?

Intuitively, how we feel about potential outcomes will determine our decisions. Indeed, one of the most influential theories in psychology, Prospect Theory, implicitly assumes that feelings govern choice. Surprisingly, h...Read more...

Journal article

The Quarterly Journal of Economics:

Dynamic selection: an idea flows theory of entry, trade, and growth

This article develops an idea flows theory of trade and growth with heterogeneous firms. Entrants learn from incumbent firms, and the diffusion technology is such that learning depends not on the frontier technology, but...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Asymptotic Properties of Imputed Hedonic Price Indices

Hedonic price indices are currently considered to be the state-of-the-art approach to computing constant-quality price indices. In particular, hedonic price indices based on imputed prices have become popular both among ...Read more...

CentrePiece article

In brief... New technology: who wins, who loses?

Technology has transformed the once powerful office of ambassador into a glorified sales position, while nurses, teaching assistants and medical technicians all benefit from the ICT revolution. According to an empirical ...Read more...

Journal article

American Economic Review:

Market size, competition, and the product mix of exporters

We build a theoretical model of multi-product firms that highlights how competition across market destinations affects both a firm's exported product range and product mix. We show how tougher competition in an export ma...Read more...

CEP discussion paper

Optimal Policy for Macro-Financial Stability

In this paper we study whether policy makers should wait to intervene until a financial crisis strikes or rather act in a preemptive manner. We study this question in a relatively simple dynamic stochastic general equili...Read more...

CEP occasional paper

What do we know about China's CEO's? Evidence from across the whole economy

All that we know about the CEO labour market in China comes from studies of public listed companies and state-owned enterprises (SOEs). This paper is the first to examine the operation of the CEO labour market across all...Read more...

CEP discussion paper

Capital Controls or Exchange Rate Policy? A Pecuniary Externality Perspective

In the aftermath of the global financial crisis, a new policy paradigm has emerged in which old-fashioned policies such as capital controls and other government distortions have become part of the standard policy toolkit...Read more...

CEP discussion paper

CEO Bonding: Who Posts Performance Bonds and Why?

Despite their theoretical value in tackling principal-agent problems at low cost to firms there is almost no empirical literature on the prevalence and correlates of performance bonds posted by corporate executives. Usin...Read more...

CEP discussion paper

Intra-Firm Trade and Product Contractibility (Long Version)

This paper examines the determinants of intra-firm trade in U.S. imports using detailed countryproduct data. We create a new measure of product contractibility based on the degree of intermediation in international trade...Read more...

CEP discussion paper

The Organization of Firms Across Countries

We argue that social capital as proxied by trust increases aggregate productivity by affecting the organization of firms. To do this we collect new data on the decentralization of investment, hiring, production, and sale...Read more...

CEP discussion paper

The Distinct Effects of Information Technology and Communication Technology on Firm Organization

Guided by theories of management by exception, we study the impact of Information and Communication Technology on worker and plant manager autonomy and on span of control. We find, using an original dataset of American a...Read more...

CEP discussion paper

A 'New Trade' Theory of GATT/WTO Negotiations

I develop a novel theory of GATT/WTO negotiations. This theory provides new answers to two prominent questions in the trade policy literature: first, what is the purpose of trade negotiations? And second, what is the rol...Read more...

CEP discussion paper

American Economic Development Since the Civil War or the Virtue of Education

This paper is the first empirical framework that explains the phenomenon of fast growth combined with the demographic transition occurring in the United States since 1860. I propose a structural model that unifies those ...Read more...

CEP discussion paper

Technology, Information and the Decentralization of the Firm

This paper develops a framework to analyze the relationship between the diffusion of new technologies and the decentralization decisions of firms. Centralized control relies on the information of the principal, which we ...Read more...

CEP discussion paper

Factor Price Equality and the Economies of the United States

We develop a methodology for identifying departures from relative factor price equality across regions that is valid under general assumptions about production, markets and factors. Application of this methodology to the...Read more...

CEP discussion paper

The Fallacy of the Fiscal Theory of the Price Level

It is not common for an entire scholarly literature to be based on a fallacy, that is, 'on faulty reasoning; misleading or unsound argument'. The 'fiscal theory of the price level', recently re-developed by Woodford,...Read more...

CEP discussion paper

UK Philips Curves and Monetary Policy

This paper documents some stylized facts on evolving UK Phillips curves, and shows how these differ from their US versions. We interpret UK Phillips curve dynamics in a positive theory of monetary policy u how policy-mak...Read more...