A classic argument in favor of a fixed exchange rate regime (ERR) has been the promotion of international trade between the pegging country and its base country. Results from previous literature point to a significant and highly positive effect of adopting a fixed ERR on bilateral trade between...

This chapter discusses how applied researchers in corporate finance can address endogeneity concerns. We begin by reviewing the sources of endogeneity—omitted variables, simultaneity, and measurement error—and their implications for inference. We then discuss in detail a number of...

In observational studies, the non-parametric estimation of a binary treatment effect is often performed by matching each treated individual with a control unit which is similar in observed characteristics (covariates). In practical applications, the reservoir of covariates available may be...

El impacto de la intensidad del conflicto armado colombiano sobre el desarrollo social no ha sido cuantificado rigurosamente. Este documento busca avanzar en el análisis de los efectos sociales de la actividad armada ilegal en los últimos años, a través del examen de la evolución de...

Nonparametric estimators of treatment effects are often applied in settings where clustering may be important. We provide a general methodology for consistently estimating the variance of a large class of nonparametric estimators, including the simple matching estimator, in the presence of...

Whether the transfer of ownership rights to the private sector leads to a decline (increase) on wage growth is theo retically ambiguous given that the outcome depends on the uncertain interaction between firms` and workers`behaviour. Using propensity matching techniques, this paper investigates...