Results

Journal article

Journal of International Economics:

Endogenous mobility in pandemics: theory and evidence from the United States

We analyze infectious diseases in a general equilibrium model with endogenous mobility, where forward-looking agents weigh disease risks against economic opportunities in cross-regional mobility decisions. This generates...Read more...

Blog

VoxEU:

Place-based industrial policies in the long run

There is growing evidence that place-based industrial policies lead to positive economic effects. This column analyses the 'Million-Rouble Plants' programme of the 1950s when the Soviet Union helped China build state-of-...Read more...

Journal article

Journal of Property Investment and Finance:

Real estate insights: sweetening the dog's breakfast that is British property taxes

Purpose - This study aims to stimulate debate on the long overdue strategic reform of property taxes. Design/methodology/approach - This study adopts an approach combining a systematic literature review with economic ana...Read more...

Blog

OECD blog:

While governments brace for another energy crisis, firms are leaving major energy savings on the table

New OECD research finds that some firms use 20 times more energy than their peers producing the same output. Reducing the gap could cut industrial energy use by more than half using technologies that already exist. This ...Read more...

CEP discussion paper

Adoption, incidence and welfare impacts of interest-free loans: evidence from solar PV

Steep declines in solar PV costs raises questions about whether, and how, to continue support. We leverage administrative microdata on the near-universe of UK domestic PV and a matched difference-in-differences design ex...Read more...

CEP discussion paper

The Economics of climate innovation: technology, climate policy, and the clean energy transition

We examine the economics of climate innovation and its role in the clean technology transition. It outlines the incentives, market failures, and policy levers that shape the development and diffusion of clean technologie...Read more...

CEP discussion paper

Cleaner energy, higher risk? Firm-level exposure to critical minerals

To what extent has the rise of clean energy technologies created new vulnerabilities in global supply chains? In this paper, I study the role of a new type of 'input uncertainty' associated with critical minerals that un...Read more...

Journal article

The Energy Journal:

Natural gas vehicles: consequences for fuel markets and the environment

Policies to adopt cleaner fuels have become increasingly important, but their impacts on incumbent fuel prices and resulting greenhouse gas emissions remain unclear. We use a panel dataset on weekly prices at the gas sta...Read more...

CEP discussion paper

Nice work if you can get it? The distribution of employment and earnings during the early years of the clean energy transition

The transition to clean energy represents a fundamental and important shift in economic activity. We present new facts about workers in clean and legacy energy sectors between 2005 and 2019 using linked, administrative e...Read more...

Journal article

Children and Youth Services Review:

Supplemental nutrition assistance program and parents? time investments in children

An emerging literature explores whether social policy programs have benefits to families and their children, above and beyond economic and human capital outcomes. We investigate whether the Supplemental Nutrition Assista...Read more...

Blog

Vox EU:

How an oil price crash sparked clean innovation: Insights from Norway

The transition to clean energy will require a significant reallocation of technological investments away from fossil energy sources towards cleaner alternatives. This column investigates whether leveraging the technologi...Read more...

Journal article

American Economic Review: Insights:

Induced innovation, inventors, and the energy transition

We study how individual inventors respond to incentives to work on ?clean? electricity technologies. Using natural gas price variation, we estimate output and entry elasticities of inventors and measure the medium-term i...Read more...

Blog

Vox EU:

New approaches to measure (increasing) concentration in Europe

Concentration (the share of a market's output produced by its largest firms) is a key proxy for measuring market competition. This column introduces a cross-country dataset to measure concentration at the industry level ...Read more...

Journal article

American Economic Journal: Applied Economics:

Do carbon offsets offset carbon?

We develop and implement a new method for identifying wasted subsidies and use it to provide systematic evidence of the misallocation of carbon offsets in the Clean Development Mechanism - the world's largest carbon offs...Read more...

Journal article

Economics & Human Biology:

Loneliness during the Covid-19 pandemic: evidence from five European countries

We use quarterly panel data from the COME-HERE survey covering five European countries to analyse three facets of the experience of loneliness during the COVID-19 pandemic. First, in terms of prevalence, loneliness peake...Read more...

CEP report

The green industrial policy matrix: Informing an industrial strategy for clean energy technologies

This paper presents new evidence to inform industrial strategy prioritisation of clean energy technologies in the UK. It focuses on seven technology categories relevant for reducing emissions across power, heat and indus...Read more...

Journal article

The Economic Journal:

Globalization and conflicts: the good, the bad, and the ugly of corporations in Africa

Using a novel georeferenced datataset on the affiliates and headquarters of multinational enterprises between 2007 and 2018 together with georeferenced conflict data for the African continent, this work establishes a cau...Read more...

CentrePiece article

in brief... Designing carbon markets that deliver change

Ever since the European Union created its market-based carbon policy, governments and businesses have been keen to assess its impact. Jonathan Colmer, Ralf Martin, Mirabelle Muuls and Ulrich Wagner explain why analysing ...Read more...

Blog

LSE EUROPP:

How China's rise has shaped innovation and exit among Europe's solar firms

Should the EU protect European firms by restricting imports of solar technology from China? Drawing on new research, Pia Andres finds that Chinese competition has resulted in many European firms going out of business, bu...Read more...

Blog

Grantham Research Institute on Climate Change and the Environment:

Harnessing the UK's strengths for green growth

Esin Serin and Pia Andres set out evidence on the UK's sectoral and technological strengths to assist policymakers as they consider how to allocate support across the economy in a way that maximises green growth opportun...Read more...

CEP discussion paper

Paternity leave and child development

We study the effect of paternity leave on early child development. We collect survey data on 5,000 children under age six in Spain and exploit several extensions of paternity leave that took place between 2017 and 2021. ...Read more...

Journal article

Management Science :

Managerial and financial barriers to the green transition

Using data on 10,776 firms across 22 emerging markets, we show that both credit constraints and weak green management hold back corporate investment in green technologies embodied in new machinery, equipment, and vehicle...Read more...

CentrePiece article

How climate change concerns affect voters

The effects of climate change have become far more noticeable in recent years, with abnormally high temperatures recorded across the world. Maria Cotofan, Karlygash Kuralbayeva and Konstantinos Matakos examine how spikes...Read more...

Blog

Imperial College Business School:

Do carbon markets work?

Ever since the EU created its market-based carbon policy, governments and businesses have been keen to see an impact. But analysing how effective policies can be on a noisy economic and global stage is complex - and hard...Read more...

Journal article

The Economic Journal:

Taking back control? Quasi-experimental evidence on the impact of retirement on locus of control

We use Australian panel data to examine the impact of retirement on individual locus of control, a socio-emotional skill with substantial explanatory power for a broad range of life outcomes. Exploiting the eligibility a...Read more...

CEP discussion paper

Global warming cools voters down: how climate concerns affect policy preferences

This study examines how regional temperature variations across OECD countries influence political behavior and support for offset policies. Our analysis reveals that exposure to higher temperatures correlates with politi...Read more...

CEP discussion paper

Endogenous mobility in pandemics: theory and evidence from the United States

We study infectious diseases in a spatial epidemiology model with forward-looking individuals who weigh disease environments against economic opportunities when moving across regions. This endogenous mobility allows regi...Read more...

Blog

VoxDevTalks:

Renewable energy in low- and middle-income countries (Podcast)

The price of renewables has fallen much faster than other sources of energy, making it a more accessible option for governments in low- and middle-income countries. In this episode of VoxDevTalks, Mar Reguant and John Va...Read more...

CEP discussion paper

Induced innovation, inventors and the energy transition

We study how individual inventors respond to incentives to work on 'clean' electricity technologies. Using natural gas price variation, we estimate output and entry elasticities of inventors and measure the medium-term i...Read more...

CEP discussion paper

Do wind turbines have adverse health impacts

While wind power is considered key in the transition towards net zero, there are concerns about adverse health impacts on nearby residents. Based on precise geographical coordinates, we link a representative longitudinal...Read more...

Journal article

Labour Economics:

Working life and human capital investment: causal evidence from a pension reform

In this paper, we analyze if an increase in the working life leads to more human capital investment via on-the-job training. We obtain RDD-estimates from a sharp date-of-birth cut-off, generated by a pension reform that ...Read more...

CEP Covid-19 analysis

The self-employment trap?

The seventh LSE-CEP survey of the self-employed was undertaken in June 2023. The results revealed that the self-employed are still in the doldrums and their incomes and activity have not resumed to pre-pandemic levels. T...Read more...

Journal article

Energy Policy:

Big oil and the energy transition: evidence from M&A

International Oil Companies (IOCs) represent a significant source of capital and expertise that could be deployed to contribute to the investment required to achieve the energy transition to a low carbon future. This pap...Read more...

Journal article

Journal of Politics :

Wait and see? Public opinion dynamics after terrorist attacks

We use the occurrence of the London bombings in July 7 2005 during the fieldwork period of the British Social Attitudes Survey to analyse the dynamics of public support for measures curbing core freedoms. We observe no c...Read more...

CEP discussion paper

Firming up price inflation

We use data from a large panel survey of UK firms to analyze the economic drivers of price setting since the start of the Covid pandemic. Inflation responded asymmetrically to movements in demand. This helps to explain w...Read more...

Journal article

American Economic Review:

Globalization and pandemics

We provide theory and evidence on the relationship between globalization and pandemics. Business travel facilitates trade and travel leads to human interactions that transmit disease. Trade-motivated travel generates an ...Read more...

CentrePiece article

Women in the workplace: 50 years of change

Decades of progress have seen greater opportunities for women in the workplace, but sizeable gender gaps remain in most indicators of economic achievement. Stefania Albanesi, Claudia Olivetti and Barbara Petrongolo revie...Read more...

Journal article

Journal of Economic Behavior and Organization :

Who promotes gender-sensitive policies?

We study whether female-headed local governments in Spain are more likely to engage in gender sensitive policies such as long-term care support, pre-schooling, or work and family-life balancing services. Using a fuzzy re...Read more...

Blog

Vox EU:

Firm inflation expectations in quantitative and text data

Inflation rates and short-term inflation expectations in the UK have increased significantly since 2021. This column uses quantitative and text data from the Decision Maker Panel to analyse the factors affecting inflatio...Read more...

Journal article

Journal of Political Economy:

The comparative advantage of firms

Resource-based theories propose that firms grow by diversifying into products that use common capabilities. We provide evidence for common-input capabilities, using a policy that removed entry barriers in input markets t...Read more...

CEP discussion paper

Families, labor markets and policy

Using comparable data for 24 countries since the 1970s, we document gender convergence in schooling, employment and earnings, marriage delay and the accompanying decline in fertility, and the large remaining gaps in labo...Read more...

Government consultation

Submission to the independent review of the UK Government's approach to net zero

Read more...

Blog

LSE British Politics and Policy :

Why have energy bills in the UK been rising?

The UK is particularly exposed to the energy crisis sweeping across the world. After predictions that annual household bills were due to rise from around #1,000 to #3,500 in October 2022, the government announced it woul...Read more...

Blog

Vox EU:

Energy costs: views of leading economists on windfall taxes and consumer price caps

Proposed policy responses to steeply rising energy costs include windfall taxes, and caps on consumer energy prices. Asked whether an energy price cap would be a more appropriate immediate response to inflation than rais...Read more...

Journal article

Energy for Sustainable Development :

Assessing reliability of electricity grid services from space: the case of Uttar Pradesh, India

While most households around the world have access to electricity, the number of hours per day when the grid supplies them with adequate voltage can be low. Improving the reliability of electricity is crucial to make pro...Read more...

Blog

LSE Business Review:

Imposing high tariffs on imported Russian gas: would it be effective?

As Russia's invasion of Ukraine continues and many call for a strengthening of sanctions, an alternative to a full energy embargo has been discussed in the form of European Union tariffs on imports of Russian gas. The In...Read more...

CEP discussion paper

Managerial and financial barriers during the green transition

Using data on 10,769 firms across 22 emerging markets, we show that both credit constraints and weak green management hold back corporate investment in green technologies embodied in new machinery, equipment and vehicles...Read more...

Blog

VoxEU:

Quantifying the full impact of country-specific policies on trade flows

Rebecca Freeman, Mario Larch, Angelos Theodorakopoulos and Yoto Yotov propose a solution to issues measuring country-specific impact using structural gravity models - a popular way to analyse the impact of trade policie...Read more...

CEP Insights

Green Growth

Many countries have plans for a "green recovery" from the pandemic, in which the invention and diffusion of "clean" technologies and practices are central. How can environmental and broader industrial policies be combine...Read more...

Journal article

iScience:

Financial viability of electric vehicle lithium-ion battery recycling

Economically viable electric vehicle lithium-ion battery recycling is increasingly needed; however routes to profitability are still unclear. We present a comprehensive, holistic techno-economic model as a framework to d...Read more...

Journal article

Environmental Research Letters:

Induced innovation in energy technologies and systems: A review of evidence and potential implications for CO2 mitigation

We conduct a systematic and interdisciplinary review of empirical literature assessing evidence on induced innovation in energy and related technologies. We explore links between demand-drivers (both market-wide and targ...Read more...

CEP discussion paper

Working life and human capital investment

This paper provides a novel test of a key prediction of human capital theory that educational investment decisions depend on the length of the pay-off period. We obtain causal estimates by leveraging a unique reform of t...Read more...

Journal article

Journal of Urban Economics:

The impact of public employment: evidence from Bonn

This paper evaluates the impact of changes in public employment on private sector activity using the creation of the new West German government in Bonn in the wake of the Second World War as a source of exogenous variati...Read more...

Journal article

Journal of Economic Geography:

Colonial legacies: shaping African cities

Institutions persisting from colonial rule affect the spatial structure and conditions under which 100s of millions of people live in Sub-saharan African cities. In a sample of 318 cities, Francophone cities have more co...Read more...

Journal article

Revista do Servico Publico:

Lockdown 101: managing economic lockdowns in an epidemic

Countries worldwide have implemented lockdown measures to contain the covid-19 pandemic. After more than three months of restrictions to economic activities in many countries, the question has turned to the best ways to ...Read more...

CEP election analysis

#GE2019Economists: the research evidence on key issues for voters in the 2019 UK General Election

The general election of 2019 was called after negotiations over how the UK should leave the European Union became increasingly tortuous. While Brexit may have been the trigger for the election, it was far from being the ...Read more...

CEP discussion paper

Spillover effects from new housing supply

I estimate spillovers from new housing supply on house prices, crime rates, and household income. To estimate these effects, I use exogenous variation in supply induced by a housing subsidy implemented in middle-income n...Read more...

Journal article

Journal of Urban Economics:

The energy costs of historic preservation

We explore the impact of historic preservation policies on domestic energy consumption. Using panel data for England from 2006 to 2013 and employing a fixed effects strategy, we document that (i) rising national energy p...Read more...

CEP discussion paper

The comparative advantage of firms

Resource based theories propose that firms grow by diversifying into products which use common capabilities. We provide evidence for common input capabilities using a policy that removed entry barriers in input markets t...Read more...

CEP discussion paper

Making smart meters smarter the smart way

We report first results from a large scale randomized control trial of different forms of energy consumption feedback facilitated by smart meters and smart phone feedback apps. Nearly 40,000 customers of a large energy r...Read more...

CentrePiece article

Economic consequences of family policies

There is no compelling evidence that extended parental leave rights have a positive impact on female employment, according to research by Claudia Olivetti and Barbara Petrongolo, which analyses the labour market effects ...Read more...

CentrePiece article

How 'local' are local labour markets?

If we want to create jobs in disadvantaged local areas, the idea of `local? needs to be revisited. Alan Manning and Barbara Petrongolo explain the problem of thinking of geographical space as non-overlapping single labou...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Impact of Public Employment: Evidence from Bonn

This paper evaluates the impact of public employment on private sector activity using the relocation of the German federal government from Berlin to Bonn in the wake of the Second World War as a source of exogenous varia...Read more...

Journal article

Journal of Economic Perspectives:

The economic consequences of family policies: lessons from a century of legislation in high-income countries

By the early 21st century, most high-income countries have put into effect a host of generous and virtually gender-neutral parental leave policies and family benefits, with the multiple goals of gender equity, higher fer...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Energy Costs of Historic Preservation

We explore the impact of historical preservation policies on domestic energy consumption. Using panel data for England from 2006 to 2013 and employing a fixed effects-strategy, we document that (i) rising national energy...Read more...

Journal article

Journal of International Economics:

On the comparative advantage of US manufacturing: evidence from the shale gas revolution

This paper provides novel empirical evidence of the effects of a plausibly exogenous change in relative factor prices on U.S. manufacturing production and trade. The shale gas revolution has led to (very) large and persi...Read more...

Journal article

Journal of Environmental Economics and Management:

Does the presence of wind turbines have negative externalities for people in their surroundings? Evidence from well-being data

Throughout the world, governments foster the deployment of wind power to mitigate negative externalities of conventional electricity generation, notably CO2 emissions. Wind turbines, however, are not free of externalitie...Read more...

CEP discussion paper

The economic consequences of family policies: lessons from a century of legislation in high-income countries

We draw lessons from existing work and our own analysis on the effects of parental leave and other interventions aimed at aiding families. The outcomes of interest are female employment, gender gaps in earnings and ferti...Read more...

CentrePiece article

Fracking: the boost to US manufacturing

Research by Rabah Arezki, Thiemo Fetzer and Frank Pisch shows that the surge in shale gas production ? `fracking? ? since the early 2000s has not only made the United States the world?s largest producer of natural gas. I...Read more...

CEP discussion paper

On the comparative advantage of US manufacturing: evidence from the shale gas revolution

This paper provides novel empirical evidence of the effects of a plausibly exogenous change in relative factor prices on United States manufacturing production and trade. The shale gas revolution has led to (very) large ...Read more...

Journal article

Energy Policy:

Competition and norms: a self-defeating combination?

This paper investigates the effects of information feedback mechanisms on electricity and heating usage at a student hall of residence in London. In a randomised control trial, we formulate different treatments such as f...Read more...

CEP discussion paper

Powering education

More than 1.3 billion people worldwide have no access to electricity and this has first-order effects on several development dimensions. In this paper we focus on the link between access to light and education. We random...Read more...

CEP discussion paper

Where does the wind blow? Green preferences and spatial misallocation in renewable energy sector

Are "greener" investments less efficient? This paper looks at the location choices by wind power investors. I measures the efficiency loss in this sector due to wrong project location and explore the factors contributing...Read more...

CentrePiece article

Crime and violence in Latin America and the Caribbean: towards evidence-based policies

Latin America and the Caribbean account for a third of the world?s homicides but under 10% of the world?s population. What?s more, homicide rates in the region are higher than they should be given countries? levels of in...Read more...

Journal article

Research Policy:

Do inventors talk to strangers? On proximity and collaborative knowledge creation

This paper examines the characteristics of the collaborations between inventors in the United Kingdom (UK) by looking at what types of proximities - geographic, organisational, cognitive, social, and cultural-ethnic - be...Read more...

Journal article

Energy Economics:

Asymmetric industrial energy prices and international trade

This paper measures the response of bilateral trade flows to differences in industrial energy prices across countries. Using a rich panel dataset with 42 countries, 62 manufacturing sectors over 16 years (1996-2011) and ...Read more...

CentrePiece article

In brief... A Global Apollo Programme to tackle climate change

Leading thinkers across the worlds of science, public service and academia have launched a new global programme to combat climate change. Richard Layard outlines their proposal for big public investment in research that ...Read more...

CEP election analysis

UK Housing and Planning Policies: the evidence from economic research

Housing affordability is a key concern of an ever-larger fraction of UK voters who are crammed into artificially limited space. At the same time, a lot of wealth lies in housing assets and there are many vested interests...Read more...

CEP election analysis

Energy and the Environment: a cold climate for climate change policies?

The UK's main political parties have all pledged to combat climate change whatever the result of the general election. Yet according to a new report from the CEP, much of the discussion is largely rhetoric, with limited ...Read more...

CEP discussion paper

Asymmetric industrial energy prices and international trade

This paper measures the response of bilateral trade flows to differences in industrial energy prices across countries. Using a panel for the period 1996-2011 including 42 countries, 62 sectors and covering 60% of global ...Read more...

Journal article

Journal of Public Economics:

The impact of a carbon tax on manufacturing: Evidence from microdata

We estimate the impact of a carbon tax on manufacturing plants using panel data from the UK production census. Our identification strategy builds on the comparison of outcomes between plants subject to the full tax and p...Read more...

CEP discussion paper

Fracking growth

This paper estimates the effect of the shale oil and gas boom in the United States on local economic outcomes. The main source of exogenous variation to be explored is the location of previously unexplored shale deposits...Read more...

CEP discussion paper

Political competition and the limits of political compromise

We consider an economy where competing political parties alternate in office. Due to rent-seeking motives, incumbents have an incentive to set public expenditures above the socially optimum level. Parties cannot commit t...Read more...

CEP discussion paper

Neighbors, Knowledge, and Nuggets: Two Natural Field Experiments on the Role of Incentives on Energy Conservation

There is increasing research on the exogenous impact of descriptive social norms on economic behavior. The research to date has a number of limitations: 1) it has not de-coupled the impact of the norm and the knowledge r...Read more...

CEP discussion paper

The geography of inter-state resource wars

We establish a theoretical as well as empirical framework to assess the role of resource endowments and their geographic location for inter-State conflict. The main predictions of the theory are that conflict tends to be...Read more...

CEP discussion paper

Unemployment in the Great Recession

This paper studies the responses of unemployment in Germany, the United States and Britain to the Great Recession of 2008-09 by making use of Beveridge curve analysis, and in the entire OECD with other techniques. It is ...Read more...

CEP discussion paper

Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans

This paper investigates the effects of local smoking bans on different outcomes using county and time variation over the last 20 years in the US. First, I find no evidence that local smoking bans in bars, restaurants and...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Importance of Time Zone Assignment: Evidence from Residential Electricity Consumption

This paper presents the first nationwide empirical assessment of residential electricity use in response to the timing of daylight. Employing Geographical Information Systems (GIS) solar times of sunrise and sunset are c...Read more...

CEP occasional paper

Social policies and labor market outcomes in Latin America and the Caribbean: a review of the existing evidence

Latin America and the Caribbean have become in the last decade or so a formidable laboratory for the design and implementation of innovative social policies. In the face of an unprecedented surge in the number of non-con...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...

CentrePiece article

In brief... Mother tongue: the economics of language learning

Javier Ortega and Gregory Verdugo look at the drivers of language assimilation in the English- and French-majority cities in Canada....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

Assimilation in Multilingual Cities

Using the Public Use Microdata Files of the 2001 and 2006 Canadian Censuses, we study the determinants of the assimilation of language minorities into the city majority language. We show that official minority members (i...Read more...

Journal article

National Institute Economic Review:

The evaluation of English education policies

Educational inequalities are evident even before children start school. Those connected to disadvantage widen out as children progress through the education system and into the labour market. We document various forms of...Read more...

CEE/Education and skills discussion paper

The Evaluation of English Education Policies

Educational inequalities are evident even before children start school. Those connected to disadvantage widen out as children progress through the education system and into the labour market. We document various forms of...Read more...

CEP discussion paper

How Local Are Labour Markets? Evidence from a Spatial Job Search Model

This paper uses data on very small UK geographies to investigate the effective size of local labour markets. Our approach treats geographic space as continuous, as opposed to a collection of nonoverlapping administrative...Read more...

CEE/Education and skills discussion paper

The Impact of Tuition Fees and Support on University Participation in the UK

Understanding how policy can affect university participation is important for understanding how governments can promote human capital accumulation. In this paper, we estimate the separate impacts of tuition fees and main...Read more...

CEP discussion paper

Anatomy of a Paradox: Management Practices, Organisational Structure and Energy Efficiency

This paper presents new evidence on managerial and organizational factors that explain firm level energy efficiency and TFP. We interviewed managers of 190 randomly selected manufacturing plants in the UK and matched the...Read more...

CEP discussion paper

Financial Crises and Macro-Prudential Policies

Stochastic general equilibrium models of small open economies with occasionally binding financial frictions are capable of mimicking both the business cycles and the crisis events associated with the sudden stop in acces...Read more...

CEP discussion paper

Revisiting Overborrowing and Its Policy Implications

This paper analyzes quantitatively the extent to which there is overborrowing (i.e., inefficient borrowing) in a business cycle model for emerging market economies with production and an occasionally binding credit const...Read more...