Showing papers in "Journal of International Economics in 2015"

TL;DR: In this article, the authors investigate the long-run relationship between public debt and growth in a large panel of countries, and find some support for a negative relationship and no evidence for a similar, let alone common, debt threshold within countries.

TL;DR: The authors examines the role of adding-up constraints as the key difference between structural gravity with multilateral resistance indexes and reduced-form gravity with simple fixed effects by exporter and importer.

TL;DR: In this article, the authors show that the correct experiment to evaluate the effects of a fiscal adjustment is the simulation of a multi-year fiscal plan rather than of individual fiscal shocks.

TL;DR: In this article, the authors provide first-hand evidence on Chinese exporters' reaction to RMB exchange rate movements, and find that the RMB price response to exchange rate changes is very small, indicating relatively high exchange rate pass-through into foreign currency denominated prices, while the volume response is moderate and significant.

TL;DR: The authors developed a new model of multi-product firms which invest to improve the perceived quality of both their individual products and their brand, and Mexican data provide robust confirmation of the model's key prediction: firms in differentiated-good sectors exhibit quality-based competence (prices fall with distance from core competence), but export sales of firms in non-differentiated good sectors exhibit the opposite pattern.

TL;DR: In this article, the causal effect of firm investment on exporting behavior was identified, based on regional variations in the 2004 value-added tax pilot reform in China, which generated positive investment shocks.

TL;DR: This article collected 2735 estimates of the elasticity of intertemporal substitution in consumption from 169 published studies that cover 104 countries during different time periods and found that households in rich countries and countries with high stock market participation substitute a larger fraction of consumption intertemporally in response to changes in expected asset returns.

TL;DR: In this article, a simple and tractable trade model of heterogeneous firms, endogenous quality choice, and endogenous markups is presented, where the most productive firms respond to competition by raising quality, prices, and markups, while the least productive either exit or respond in the exact opposite manner.

TL;DR: This paper explored the impact of input trade liberalization on imported input and exported product prices using Chinese transaction data for 2000-2006 and found that firms exploit the input tariff cuts to access high-quality inputs in order to quality-upgrade their exports.

TL;DR: In this paper, the authors analyzed the effect of skilled migration on two measures of innovation, patenting and bibliometric data, in a panel of 20 European countries between 1995 and 2008, and found that a larger pool of migrants in the skilled professions is associated with higher levels of knowledge creation.

TL;DR: This article examined new data from a targeted survey of U.S. employees in 12 different industries and found that fears about labor market competition do not appear to have substantial effects on attitudes toward immigration, and preferences with regard to immigration policy, among this large and diverse set of voters.

TL;DR: The authors show that accounting for cross-industry variation in trade elasticities greatly magnifies the estimated gains from trade, while imports in the average industry do not matter too much, imports in some industries are critical to the functioning of the economy, so that a complete shutdown of international trade is very costly overall.

TL;DR: This paper employed a dynamic multi-country framework to analyze the international macroeconomic transmission of El Nino weather shocks and found that there are considerable heterogeneities in the responses of different countries to El-Nino shocks, while Australia, Chile, Indonesia, India, Japan, New Zealand and South Africa face a short-lived fall in economic activity in response to an ElNino shock.

TL;DR: In this paper, the authors explored under which conditions and to what extent firms use these products and found that 15% or $2.5 trillion of world exports are settled with letters of credit and documentary collections.

TL;DR: In this paper, the authors used a propensity-score matching methodology to evaluate the effectiveness of capital control and macro-prudential measures related to international exposures, and found that most CFMs do not significantly affect other key targets, such as exchange rates, capital flows, interest-rate differentials, inflation, equity indices, and different volatilities.

TL;DR: The authors showed that the magnitude of unobservable, residual trade costs is large, and that their ignorance leads to a bias of the importance of observable trade-cost measures as well as of country-specific variables that are either solved implicitly through structural estimation or estimated explicitly as fixed effects.

TL;DR: In this article, the authors consider the heterogenous trade effects of restrictive sanitary and phyto-sanitary (SPS) measures on exporters of different sizes, and the channels via which aggregate exports fall: firm participation, export values and pricing strategies.

TL;DR: In this article, the authors introduce tax evasion and corruption features in a New Keynesian model and revisit the effects of fiscal consolidations and use the model to assess the recent fiscal consolidation plans in Greece, Italy, Portugal and Spain.

TL;DR: In this paper, a structural estimator of import demand and supply elasticities is proposed to correct small sample biases and constrained search inefficiencies, which is based on the first principles of the methodology from Leamer (1981).

TL;DR: In this paper, a commodity sector is embedded into a multi-country EMEs business cycle model where exogenous fluctuations in commodity prices follow a common dynamic factor structure and coexist with other driving forces.

TL;DR: The authors analyzed the interaction between credit constraints and trading behavior, decomposing trade in extensive and intensive margins, and found that firms that have better credit rating export and import more than those that have worse credit rating.

TL;DR: In this paper, a method to estimate the direct effects of foreign ownership on foreign firms' productivity and the indirect effects from the presence of foreign-owned firms on other foreign and domestic firms's productivity in a unifying framework, taking interactions between firms into account.

TL;DR: The authors examined the evolution of international currency exposures, with a particular focus on the 2002-12 period, and found that the distribution of valuation effects was stabilizing in the sense of showing a negative covariation pattern with pre-crisis net foreign asset positions.

TL;DR: In this paper, the long run effects of inflation in a two-country Schumpeterian growth model with cash-in-advance constraints on consumption and R&D investment are explored.

TL;DR: This paper showed that exogenous variations in foreign sales are positively associated with domestic sales, even after controlling for changes in domestic demand, and that a 10% exogenous increase in exports generates a 1.5 to 3% increase in domestic sales.

TL;DR: In this paper, a model of demand learning was proposed to explain the behavior of new exporters to add and drop products with much greater frequency than old exporters, in which an exporter's profitability on the demand side is determined by a time-invariant firm-destination appeal index, and transient firm destination-year preference shocks.

TL;DR: This paper explored the menu of options for renormalizing public debt levels relative to nominal activity in the long run, should governments eventually decide to do so, and showed that a vision of longer-term options is key to weighing alternative medium-term stabilization strategies.

TL;DR: In this paper, the authors build a model of administrative barriers to trade to understand how they affect trade volumes, shipping decisions and welfare, and derive a gravity equation in their model and show that administrative costs can be expressed as bilateral ad-valorem trade costs.

TL;DR: In this paper, a method to estimate mobility costs using readily obtainable data worldwide is proposed, which matches the changes in observed sectoral employment allocations with the predicted allocations from a model of costly labor adjustment.

TL;DR: Using Korean firm-level data on publicly-listed and privately-held firms together with firm exit data, this paper found strong evidence that holdings of foreign-currency denominated debt negatively affected the economic performance of small firms during the 1997-98 crisis.