[ Publications ]
“Immigration, Remittances and Business Cycles” (with Federico Mandelman)
Journal of Monetary Economics, vol. 59(2), March 2012. [Appendix]
data on border enforcement and macroeconomic indicators from the
“Financial Frictions, Trade Credit, and the 2008-09 Global Financial Crisis” (with Brahima Coulibaly and Horacio Sapriza)
International Review of Economics & Finance, vol. 26, April 2013.
This paper studies the role of the credit crunch in the severe contraction of economic activity during the 2008-09 global financial crisis, using firm-level data from six emerging Asian economies. After controlling for the effect of falling demand, we find that sales declined by less for firms with better pre-crisis financial conditions. Amid the decline in external financing opportunities, some firms relied more on trade credit from suppliers during the crisis, which allowed them to post relatively better sales. Export-intensive firms resorted less to trade credit as an alternative source of finance, which contributed to their larger declines in sales.
[ Working Papers ]
“Liquidity Shocks, Dollar Funding Costs, and the Bank Lending Channel during the European Sovereign Crisis” (with Ricardo Correa and Horacio Sapriza), International Finance Discussion Paper 1059, Federal Reserve Board, November 2012.
paper documents a new type of cross-border bank lending channel. The
deepening of the European sovereign debt crisis in 2011 restrained the
financial intermediation of European banks in the
“Offshore Production and Business Cycle Dynamics with Heterogeneous Firms,” International Finance Discussion Paper 995, Federal Reserve Board, updated December 2012.
variation in production costs encourages firms to relocate production
facilities to other countries, a process known as offshoring
through vertical foreign direct investment. To examine the effect of offshoring on the international transmission of business
cycles, I propose a model that distinguishes between fluctuations in the
number of offshoring firms (the extensive margin)
and in the value added per offshoring firm (the
intensive margin) as separate transmission mechanisms. In the model, firms
are heterogeneous in labor productivity. They face a sunk cost to enter the
domestic market, and an additional fixed cost to produce offshore. The offshoring decision depends on the firm-specific level of
labor productivity and on fluctuations in the relative cost of effective
labor. They key results are: (1) The model replicates the pro-cyclical
pattern of offshoring, as well as the dynamics
along its extensive and intensive margins, which I document using data from
[ Other Publications ]
“Real Convergence in Central, Eastern and South-Eastern
Chapter in volume, “Real
Convergence in Central, Eastern and South-Eastern Europe,” Reiner
Martin and Adalbert Winkler
“Real Convergence and the
Determinants of Growth in EU Candidate and Potential Candidate Countries: A Panel
Data Approach” (with
Occasional Paper No. 86, European Central Bank, June 2008 (refereed series).
show that that total factor productivity growth, followed
by capital accumulation, have been the main drivers of convergence for
the EU candidate and potential candidate countries with the euro area. In
contrast, labour has had a marginal contribution to
economic growth. We also provide evidence of conditional convergence in the
transition countries of central, eastern and south-eastern
“Explorations into the Production of State Government Services: Education, Welfare, Hospitals” (with Richard W. Tresch)
Paper No. 679, Economics
paper explores the production characteristics of three important
“Antidumping: Prospects for Discipline from the Doha Negotiations” (with J. Michael Finger)
Journal of World Investment & Trade, 6(4), August 2005, pages 531-548.
available as Working Paper No. 632,