The European Union Emissions Trading System is set to substantially increase the effective carbon price faced by airlines. To quantify the impact of this carbon regulation on the European airline industry, we estimate a two-stage model of airline competition with endogenous route entry, flight...

Empirical models of trade agreements implicitly assume that withdrawal from a trade agreement has an equal and opposite trade effect as accession, i.e., symmetry. With increasing opposition to international economic cooperation, it becomes urgent to test this assumption. We analyze a...

We leverage decades of administrative data and quasi-experimental variation in the introduction of universal long-term care (LTC) insurance in Germany in 1995 to examine whether health insurance expansions can stimulate local economies. We find that the LTC insurance rollout led not only to...

We study the interaction between unemployment insurance (UI) and other social transfers exploiting state-level changes to UI generosity and data from the Survey of Income and Program Participation (1990-2013). We find that more generous UI leads to a reduction in the receipt of other public...

This paper presents a dynamic general equilibrium model designed to examine the macroeconomic effects and welfare implications of alternative reforms to the US health insurance system. Specifically, it scrutinizes the extent to which health care reform can mitigate inefficiencies stemming from...

Transaction-level quantity discounts are a pervasive feature of US trade, shaping both price variation and tariff incidence. Using administrative microdata, we show that these discounts reflect transaction-level scale economies rather than market power. Accounting for these micro-level economies...

This paper studies self-preferencing in search results and how it affects quality competition in the U.S. Apple App Store. Leveraging a search algorithm change, I find that rankings significantly affect app demand and developers’ quality provision. To examine the welfare effects of...

We consider welfare impacts of prohibitive tariffs on trading partners. Initially, there is prohibitive tariff by one country and a zero tariff by its trading partner. Thereafter, the trading partner also resorts to prohibitive tariff. We demonstrate how prohibitive tariffs by the trading...

This paper examines the welfare implications of job retention schemes, where governments subsidize employers to preserve jobs during downturns. Using EU microdata from 2003 to 2018, we show that such schemes are associated with lower job separation rates, especially among lower-productivity...

I examine whether trade can improve the impact of population growth on natural resources (NR) and welfare over time. Under autarky, population growth results in NR and welfare collapse over time, irrespective of the value of the returns to scale in the manufacturing sector, ϕ. Under trade, NR...

The current report presents findings of a research project that explored attitudes towards welfare and redistributive policies among Irish residents. Public support for the welfare state is an important foundation for democratic governments to pursue the policies needed to alleviate poverty in...

ndustrial policy has returned to the centre of economic governance, particularly in the high-tech sectors where positive network externalities in demand make market dominance self-reinforcing. This paper studies the welfare effects of an industrial policy targeting a sector with network...

We consider five models of international trade that belong to the class of models in which the trade elasticity and domestic trade share are sufficient statistics for the welfare cost of autarky. Three are fixed-variety models featuring increasing micro-level margins of adjustment: versions of...

This paper presents a dataset and an analytical framework to study the welfare effects of tariff changes on women. The data is an extension of the Household Impacts of Tariffs (HIT) dataset, which contains harmonized household survey data for 54 low and lower middle-income countries. It includes...

Prior studies assessing welfare across countries have utilised measures that combine country-level outcomes in income and life expectancy. However, this perspective remains blind to the fact that two countries may have the same life expectancy and/or average income but very different underlying...

Population aging in middle-income economies produces macroeconomic and distributional consequences that aggregate frameworks cannot detect. This paper develops a multi-household CGE model calibrated to a 26-sector Social Accounting Matrix for Thailand (2024) and traces the labor, saving, and...

The COVID-19 pandemic increased public debt and changed the income distribution in many countries. We use a numerical simulation approach to derive optimal nonlinear marginal tax rates for the pre-crisis and crisis periods. We contribute to the literature by examining optimal tax rates...

We leverage decades of administrative data and quasi-experimental variation in the introduction of universal long-term care (LTC) insurance in Germany in 1995 to examine whether health insurance expansions can stimulate local economies. We find that the LTC insurance rollout led not only to...

Empirical models of trade agreements implicitly assume that withdrawal from a trade agreement has an equal and opposite trade effect as accession, i.e., symmetry. With increasing opposition to international economic cooperation, it becomes urgent to test this assumption. We analyze a...

We construct a macroeconomic model based on household wealth preferences to identify the theoretical conditions under which full-employment and/or stagnation steady states hold. The theoretical conditions also specify the minimum level of inflation target that shifts the economy from stagnation...

Modern analysis of the welfare effects of monetary policy is based on moneyless models and therefore ignores the effect of inflation on the efficiency of transactions. A justification for this strategy is that these welfare effects are quantitatively very small, as argued by Ireland (2009). We...

This paper analyzes the welfare impacts of import bans in Nigeria, and how these are shaped by evasion. Bans were not effectively enforced, and contributed to informal trade. The imposition of bans nonetheless increased consumer prices by 5.8% on average. However, price increases are...

In "Immigration, search and redistribution: A quantitative assessment of native welfare," a paper by Battisti et al. published in the August 2018 issue of the Journal of the European Economic Association, the authors inquire about how migration to 20 Organization for Economic Cooperation and...