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We study fiscal devaluation in a small-open economy with labor market search frictions. Our analysis shows the key role of both dimensions in shaping the optimal tax scheme. By reducing labor market distortions, the tax reform is welfare-improving. Yet, as it makes imports more expensive, fiscal...
Persistent link: https://www.econbiz.de/10013104944
How do immigrants promote exports? To answer this question we propose a unified empirical framework allowing to identify and disentangle the main mechanisms put forth in the literature: the role of networks in reducing bilateral transaction costs, and the productivity shifts arising from...
Persistent link: https://www.econbiz.de/10014241961
This paper examines the welfare loss of import restrictions on bananas in Australia and whether the import restrictions have turned into a particular form of export promotion. We set up a model in which there is free domestic entry, with banana producers accepting losses in normal years, off-set...
Persistent link: https://www.econbiz.de/10013057905
We study the effect of long-term care (LTC) subsidies and supports on the wellbeing of unpaid caregivers. We draw on evidence from a policy intervention, that universalized previously means-tested caregiving supports in Scotland, known as free personal care (FPC). We document causal evidence of...
Persistent link: https://www.econbiz.de/10014082244
Balancing caregiving duties and work can be both financially and emotionally burdensome, especially when care is provided to a spouse at home. This paper documents that financial respite for caregivers can influence individuals' early retirement decisions. We examine the effect of a reform...
Persistent link: https://www.econbiz.de/10014083050
China is perceived to rely on subsidizing firms in targeted industries to improve their performance and stay competitive. We implement an approach that allows for the joint estimation of direct and indirect effects of subsidies on subsidized and non-subsidized firms. We find that firms that...
Persistent link: https://www.econbiz.de/10014083724
We estimate the employment effects of a large program of public investment subsidies that ranked applications on a score reflecting both objective criteria and local politicians' preferences. Leveraging the rationing of funds as an ideal RDD, we characterize the heterogeneity of treatment...
Persistent link: https://www.econbiz.de/10014083777
abolition of a hiring subsidy targeted at long-term unemployed jobseekers over 45 years of age in Belgium to evaluate its … effectiveness in the short and medium run. Based on a triple difference methodology the hiring subsidy is shown to increase the job … at least a bachelor's degree. However, the hiring subsidy mainly created temporary short-lived employment: eligible …
Persistent link: https://www.econbiz.de/10014084071
current subsidy program underwent a major reform in 2011 that changed its key parameters: support was lowered, eligibility …
Persistent link: https://www.econbiz.de/10012946566
's retirement decision. Using administrative pension insurance records from Germany, I examine the impact of a pension subsidy …-of-the-envelope calculation suggests the ratio of behavioral cost to mechanical cost of this subsidy program is 0.3, which is smaller than other … subsidy program can account for one third of the increase in women's age of claiming pension over the past decade …
Persistent link: https://www.econbiz.de/10012910725