Now showing 1 - 10 of 46
  • Publication
    Earnings inequality and transition : a regional analysis of Poland
    (Institute for the Study of Labor, 2002-02) ;
    In this paper we estimate the impact of transition on earnings inequality using data across Polish regions 1994-1997. Our central result is that earnings inequality is higher in regions that are more advanced in restructuring (higher labour productivity/job reallocation rates), controlling for unobservable regional fixed effects. At the national level rapid growth does not seem to be associated with earnings inequality. This aggregate relationship is shown to be misleading. The positive relationship between earnings inequality and the stage of transition across regions remains when we apply an infrastructure-deficit based instrumental variable approach to allow for reverse causality.
  • Publication
    Product differentiation and firm size distribution : an application to carbonated soft drinks
    (Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science, 2002-08) ;
    Using brand level retail data, the firm size distribution in Carbonated Soft Drinks is shown to be an outcome of the degree to which firms have placed brands effectively (store coverage) across vertical (flavour, packaging, diet attributes) segments of the market. Regularity in the firm size distribution is not disturbed by the nature of short-run brand competition (turbulence in brand market shares) within segments. Remarkably, product differentiation resulting from firms acquiring various portfolios of product attributes and stores in market evolution determines the limiting firm size distribution.
  • Publication
    Optimal corporation tax : an I.O. approach
    (Trinity College Dublin. Institute for International Integration Studies (IIIS), 2005-10) ; ;
    Our IO approach links optimal effective corporation tax rates to the nature of sunk costs within industries. Theory predicts that optimal effective corporation tax rates will be negatively related to industry specific sunk cost, and hence industry concentration. Governments should tax industries with monopolistic power softly. Evidence suggests that this Schumpeterian (1942) principle of corporate taxation was used widely across industries in France, Italy and the UK in the 1990s.
  • Publication
    From the Great Lakes to the Great Rift Valley: Does Strategic Economic Policy Explain the 2009 Malawi Election?
    (University College Dublin. Geary Institute, 2014-02-28) ; ;
    Ethno-regional voting cleavages have featured in a number of sub-Saharan African states during the third wave of democratization following the end of the Cold War.While the causes and consequences of these cleavages are well studied, there have been surprisingly few attempts to understand how strategies of pan-ethnic or pan-regional coalition building based on distributive economic policies could be employed to secure national electoral coalitions. In this paper we examine if in the 2009 Malawian parliamentary elections the newly-formed national party, the Democratic Progressive Party (DPP), led by the President Binguwa Mutharika used its incumbent position to promote an economic policy based on food security in order to overcome traditional ethno-regional voting patterns and win a nationwide electoral majority. After presenting a formal model of a optimal allocation of an economic resource to overcome ethnic bias and induce vote-switching, we use district-level data in a system of equations to analyze if strategic allocation within the national fertilizer subsidy program contributed to the nation-wide electoral victory of the DPP.
  • Publication
    Corn market dynamics and the Joint Executive Committee (1880-1886)
    (University College Dublin. Geary Institute, 2009-06) ;
    We incorporate previously omitted controls of external conditions in transportation and commodity markets into Porter's (1983) analysis of industry demand, conduct and stability of the JEC railroad cartel. We estimate the equilibrium price path, non-parametrically, and find that the reaction of the JEC in its rate setting to the nature of rate setting, over alternative modes of conveyance, is very much predicted by the theoretical considerations in Haltiwanger and Harrington (1991). Periods of Cartel instability are triggered by unexpected booms in corn markets in New York, amongst other factors. The latter is consistent with the Green and Porter (1984) theory. Keywords: Corn Market Spot and Future Weekly Prices in Chicago and New York, Demand Cycles, Inventory Management in New York, JEC Railroad Cartel Pricing, Outside Transportation Options, Structural Modeling.
  • Publication
    Individual pay and outside options : evidence from the Polish labour force survey
    (Institute for the Study of Labor, 2001-05) ;
    Using Polish Labour Force Survey data, we examine whether competition for labour has induced individual pay to depend on outside options, availability and quality of jobs. Exploiting the lack of inter-regional job and worker flows we estimate the elasticity of individual pay, amongst a rich set of individual characteristics, to be approximately -0.1 for local unemployment (job shortages) and + 0.1 for local job reallocation (restructuring). Variations in local labour market conditions explain approximately 50 per cent of the differences in expected individual earnings across regions, while differences in inherited human capital and occupation structures explain the rest.
  • Publication
    Merger control in differentiated product industries
    (MIT Press Journals - Massachusets Institute, 2006) ; ;
    Given that brands (products) are location specific in terms of coverage of retail stores, we allow consumers to have preferences over location and products to carry distribution costs, alongside preferences and costs over other observable and unobservable product characteristics. We embed these considerations into Berry, Levinsohn and Pakes (1995) to jointly estimate demand and cost parameters for brands (products) in Retail Carbonated Soft Drinks. Allowing for location has a very significant impact on estimated primitives and the predictive power of the structural model. As a counterfactual exercise we show the effects on welfare of an equilibrium that results from a change in the distribution of consumer taste for location.
  • Publication
    Employment dynamics of newly established and traditional firms : a comparison of Russia and the Ukraine
    (LICOS Centre for Transition Economics, 1999) ;
    In this paper we test the effects of ownership, competition and disorganisation on firm level employment dynamics using a unique data set of 150 Russian and 300 Ukrainian firms. Our results, in contrast to findings in Central and East European Countries, suggest that newly established firms do not out perform those that existed under central planning during the transition process. In addition, while competition seems to play no role in employment determination, disorganisation is shown to constrain firm employment in the Ukraine but not in Russia. Such outcomes are explained by the nature and timing of restructuring in these countries.
  • Publication
    Gradual restructuring and structural unemployment in Poland. A legacy of central planning
    (LICOS Centre for Transition Economics, 1999) ;
    In the transition to a market economy we examine the relationship between inherited human capital structures and the evolution of unemployment within a two-sector model of endogenous restructuring. We find evidence across Polish regions for the predictions of our theory. The inherited dominance of ineffective human capital in eastern regions of Poland has delayed restructuring, reduced unemployment turnover and lowered the number of workers with out-dated human capital in the unemployment stock. On the other hand, the dominance of effective human capital in western regions has induced restructuring, boosted unemployment turnover and increased the number of workers with out-dated human capital among the unemployed. We argue that the role of government to prevent such outcomes is limited. Yet, intervention conceived as social rather than economic policies can lessen the social cost created from the inheritance of out-dated human capital, which is a legacy of central planning.