Emerging economies (EMEs) exhibit high regulatory barriers to firm entry, where the latter are associated with reduced access to credit markets. Reforms that reduce firm-creation costs have therefore become a key policy priority. At the same time, access to domestic credit markets can expose EME firms to external financial shocks that propagate to EMEs via the banking system, such as those experienced during the Global Financial Crisis.

Economic activity in developing countries is labor-intensive, low-scale, and fam- ily run, with substantial family managerial time spent supervising hired labor. We use a randomized control trial that subsidizes access to rental equipment markets to study the impact of the adoption of mechanized practices on labor demand, productivity and managerial span of control. The intervention induces greater mechanization in the upstream production stage, and labor savings con- centrated in downstream, non-mechanized stages.

In emerging markets, a significant share of corporate loans are denominated in dollars. Using novel data that includes loan-level currency and the cost of credit, in addition to several other transaction[1]level characteristics, we re-examine the reasons behind dollar credit popularity. We find that a dollar[1]denominated loan has an interest rate that is 2 percentage points lower per year than a loan in local currency. Expectations of exchange rate movements do not explain this difference.

We document that between 50% and 70% of changes in the US wage structure over the last four decades are accounted for by the relative wage declines of worker groups specialized in routine tasks in industries experiencing rapid automation. We develop a conceptual framework where tasks across a number of industries are allocated to different types of labor and capital. Automation technologies expand the set of tasks performed by capital, displacing certain worker groups from employment opportunities for which they have comparative advantage.

This paper studies Colombian paramilitarism as a natural experiment to understand the logic of the really existing Colombian state. In contrast to stylized dichotomies of different types of states (ie: Weberian “rational-legal” vs. patrimonial), we develop a model where the Weberian core allows for the self-organization of the non-Weberian periphery in spatial equilibrium.

This paper quantifies the positive and normative effects of capital controls on international economic activity under The Bretton Woods international financial system. We develop a threeregion world economic model consisting of the U.S., Western Europe, and the Rest of the World. The model allows us to quantify the impact of these controls through an open economy general equilibrium capital flows accounting framework. We find these controls had large effects. Counterfactuals show that world output would have been 6% larger had the controls not been implemented.

Can transport infrastructure promote long-term labour opportunities and break the occupation tie between parents and their children? This paper estimates the causal effect of access to the railroad network on intergenerational occupation mobility in nineteenth century England and Wales. We create a new dataset of father and son pairs by linking individuals across the full-population censuses of 1851, 1881 and 1911. By geolocating individuals down to the street level, we measure access to the railroad network using the proximity to the nearest train station.