Laura Puzzello

A proportionality assumption and measurement biases in the factor content of trade

Publisher: Elsevier BV

Date: 05-2012

DOI: 10.1016/J.JINTECO.2011.11.009

Global supply chains and natural disasters: Implications for international trade

Publisher: Edward Elgar Publishing

Date: 31-10-2014

DOI: 10.4337/9781783472093.00010

Winners and losers from the €uro

Publisher: Elsevier BV

Date: 09-2018

DOI: 10.1016/J.EUROECOREV.2018.06.011

When are instruments generated from geographic characteristics in bilateral relationships invalid?

Publisher: Wiley

Date: 10-05-2021

DOI: 10.1002/JAE.2815

Abstract: In their highly influential paper, “Does Trade Cause Growth?,” Frankel and Romer estimate a trade equation to predict bilateral trade shares, which are in turn aggregated to construct an instrument for trade openness in income regressions. The Frankel‐Romer approach has gained widespread popularity as a method to generate instruments for trade and many other outcome variables from estimated bilateral relationships. In this paper, we show analytically and empirically that the Frankel–Romer instrument gives inconsistent estimates for the effect of trade on income when fitted values for zero and missing bilateral shares are omitted from the instrument. This leads to a violation of the exclusion restriction because the instrument captures the endogenous variation in the observed probability that countries engage in bilateral trade, as reflected in the number of observed trading partners. This violation disappears when predicted bilateral shares for all observed and unobserved bilateral trade relationships are included in the instrument for trade openness.

Trade and the greenhouse gas emissions from international freight transport

Publisher: Elsevier BV

Date: 2013

DOI: 10.1016/J.JEEM.2012.06.002

Taxes, cigarette consumption, and smoking intensity: Comment

Publisher: American Economic Association

Date: 06-2012

DOI: 10.1257/AER.102.4.1751

Abstract: This paper re-examines Adda and Cornaglia's (2006) evidence on the compensatory behavior of smokers who, in face of higher taxes, are found to reduce their consumption of cigarettes while maintaining their cotinine––a biomarker for nicotine––levels constant. This comment examines the robustness of the empirical findings in Adda and Cornaglia (2006) using: appropriate clustered standard errors, a larger s le from the same years and survey as the data in Adda and Cornaglia (2006), cigarette-prices instead of and in addition to cigarette-taxes, and s ling weights. The empirical findings of Adda and Cornaglia (2006) are not robust. Further, little systematic evidence of compensatory behavior is found among subs les of smokers

Monash University

Location: Australia

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Monash University - Caulfield Campus

Location: Australia

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Discovery Projects - Grant ID: DP200100639

Start Date: 12-2020

End Date: 12-2024

Amount: $288,000.00

Funder: Australian Research Council