What determines the distribution of establishments in terms of size and life-cycle growth? How are those determinants related to aggregate productivity? We provide novel answers by developing a framework that uses price and quantity information on establishments’ outputs and inputs to jointly estimate the demand and production parameters, and subsequently establishments’ quality-adjusted productivity, deriving both micro-level and aggregate implications.
The size of farms is an important determinant of agricultural productivity. This paper studies how rural land markets respond to weather shocks and how the farm size distribution changes as a consequence. Using two unique administrative data sets with transaction-level information on land sales in the country of Colombia and a land registry covering most of the country, we estimate the impact of extreme temperature events on the frequency of land sales and on the farm-size distribution of small geographical units.
El PIB potencial, definido como aquel no inflacionario, se usa como un instrumento para definir la postura de la política monetaria. El propósito de este documento es encontrar una medida de PIB tendencial coherente con las necesidades de política fiscal que considere los costos de una política expansiva a través del pago de intereses de la deuda soberana.
We study the dynamic effects of trade liberalization on structural change and growth for a developing economy at the municipal level. We exploit exogenous tariff reductions introduced by the FTA between Colombia and the US in 2012. By relying on a quasi-experimental shift-share research design, operationalized through local projections difference-in-differences (LP-DiD), we show that municipalities facing higher tariff reductions are characterized by lower total and GDP per capita.
Much of the recent work on gender economics explains gender gaps pointing to differences in preferences, societal gender norms and prescriptive stereotypes about what women and men should be good or bad at and what they should like or dislike. But what happens to the individuals that do not behave/choose like the gender-typical person? We address this question using longitudinal data that allows us to measure gender conformity during childhood—using a seemingly irrelevant questionnaire—and tracks individuals through their life.
The feedback loop between sovereign and financial sector insolvency has been identified as a key driver of the European debt crisis and has motivated an array of policy proposals. We revisit this “doom-loop” focusing on governments' incentives to default. To this end, we present a simple 3-period model with strategic sovereign default, where debt is held by domestic banks and foreign investors. The government maximizes domestic welfare, and thus the temptation to default increases with externally-held debt.