This paper analyses the distributional impact of high consumer inflation in the euro area and government measures to compensate households in 2022. The study uses the tax-benefit microsimulation model for the European Union (EUROMOD) with microdata as the input - EU statistics on income and...

This study addresses the different distributional and welfare implications of price volatility amid the ongoing cost-of-living crisis, focusing on both Turkey and the South Caucasus region, which have different welfare regimes and patterns of price changes. This paper explores the impact of...

This paper extends the sufficient statistics approach to study international tax policy. International policy differs from domestic policies because i.) from the perspective of domestic policy makers the welfare weight on foreign agents lies below that of domestic agents, and ii.) behavioral...

Following the gains from variety literature, this paper estimates the welfare impact of growth of the variety of imported goods in 28 countries in East Africa and East Asia and compares the results. While estimating the gains from variety, the elasticities of substitution are estimated for each...

By utilizing panel statistics of 1520 country pairs and economic integration agreements (EIAs) from 2007 to 2017, this paper presents evidence of the effect of EIAs on export margins, i.e., both extensive (firms) and intensive margins (average exports per firm). In doing so, this work adds...

Purpose - Health shocks are among the factors that have impeded households from experiencing better welfare. To mitigate the consequences of these shocks, individuals have sought to enrol in a formal insurance scheme or borrow from banks. This study estimates the effects of health shocks on...

A major section of the existing literature on strategic trade policy, following a partial equilibrium framework, observed that imposition of tariff by the domestic country leads to a rise in their wage level. Analysis on the impact of strategic trade policy intervention (tariff) on wages and...

We study the aggregate implications of production network formation in a quantitative multi-location general equilibrium trade model. Firms search for suppliers and buyers across locations subject to matching frictions, generating a gravity structure of production networks. We develop sufficient...

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...

This paper examines welfare disparities between in-camp refugees and host com- munities in Ethiopia, using data from the 2023 Socio-Economic Survey of Refugees in Ethiopia. The analysis reveals significant welfare gaps between in-camp refugees and hosts even after accounting for various other...

We develop and test a theory of efficient international trade. Efficiency gains arise through lower trade costs faced by 'trade specialists', whose superiority over 'common traders' manifests itself through lower trade costs. To test our theory, we construct and deploy a novel dataset based on...

We analyze the equilibrium effects of different subsidies on target goods under both perfectly competitive and monopolistic market structures. We concentrate our analysis on three particularly common forms of subsidies: (i) a per-unit subsidy, (ii) an ad valorem subsidy, and (iii) an "inversely...

U.S. equity outperformance and sustained dollar appreciation have led to large valuation gains for the rest of the world on the U.S. external position. I construct their global distribution, carefully accounting for the role of tax havens. Valuation gains are concentrated and large in developed...

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...