This paper presents tests for the null hypothesis of no regime switching in Hamilton's (1989) regime switching model. The test procedures exploit similarities between regime switching models, autoregressions with measurement errors, and finite mixture models. The proposed tests are...

This paper explores the effect of fiscal incentives for R&D on innovation. Spain is considered one of the most generous countries in the OECD in fiscal treatment of R&D, yet our data reveal that tax incentives are little known and, especially, seldom used by firms. Restricting our empirical...

I use two administrative databases combining information about workers' characteristics and earnings to estimate the effect of outplacement services on wage prospects of unemployed workers. The results suggest that the impact of outplacement is positive, although the magnitude depends on the...

Estimating the effect of official foreign exchange market intervention is complicated by the fact that intervention at any point entails a self-selection choice made by the authorities and that no counterfactual is observed. To address these issues, we estimate the counterfactual exchange rate...

This paper analyzes the relationship between households' wealth and heterogeneous treatment impacts for a market-based training program that has benefited more than 40,000 disadvantaged individuals in Peru since 1996. We proxy long-run wealth by a linear index based on 21 households assets, and...

Exploiting a window of opportunity in Vietnam, this paper examines the impact of social health insurance on target population groups. Significant inequalities in the coverage of service utilization and financial protection are found across groups. Persons with disabilities, and retirees to a...

One of the most powerful critiques of the use of randomised experiments in the social sciences is the possibility that individuals might react to the randomisation itself, thereby rendering the causal inference from the experiment irrelevant for policy purposes. In this paper we set out a...