scholarly journals Organizing Global Supply Chains: Input-Output Linkages and Vertical Integration

2020 ◽  
Author(s):  
Giuseppe Berlingieri ◽  
Frank Pisch ◽  
Claudia Steinwender
Keyword(s):  
Vertical Integration ◽  
Instrumental Variable ◽  
Transaction Cost Economics ◽  
Global Supply Chains ◽  
Input Output ◽  
Incomplete Contracting ◽  
Ex Post ◽  
Variable Approach ◽  
Contracting Model ◽  
Instrumental Variable Approach

Abstract We study how the technological importance of inputs—measured by cost shares—is related to the decision to “make” or “buy” that input. Using detailed French international trade data and an instrumental variable approach based on self-constructed input–output tables, we show that multinationals vertically integrate technologically important inputs. A stylized incomplete contracting model with both ex-ante and ex-post inefficiencies explains why: Technologically more important inputs are “made” when transaction cost economics type forces overpower property rights type forces. However, additional results show that both types of forces are needed to explain the full patterns in the data.

scholarly journals Political Connections, Allocation of Stimulus Spending, and the Jobs Multiplier

2021 ◽  
Vol 2021 (004) ◽  
pp. 1-65
Author(s):  
Joonkyu Choi ◽  
◽  
Veronika Penciakova ◽  
Felipe Saffie ◽  
◽  
...  
Keyword(s):  
Instrumental Variable ◽  
Public Expenditure ◽  
State Level ◽  
Political Connections ◽  
Fiscal Stimulus ◽  
Ex Post ◽  
Variable Approach ◽  
The Impact ◽  
State Legislative ◽  
Instrumental Variable Approach

Using American Recovery and Reinvestment Act (ARRA) data, we show that firms lever their political connections to win stimulus grants and public expenditure channeled through politically connected firms hinders job creation. We build a unique database that links campaign contributions and state legislative election outcomes to ARRA grant allocation. Using exogenous variation in political connections based on ex-post close elections held before ARRA, we causally show that politically connected firms are 64 percent more likely to secure a grant. Based on an instrumental variable approach, we also establish that state-level employment creation associated with grants channeled through politically connected firms is nil. Therefore, the impact of fiscal stimulus is not only determined by how much is spent, but also by how the expenditure is allocated across recipients.

International Remittances and Private Healthcare in Kerala, India

2020 ◽  
Vol 17 (3) ◽  
pp. 445-460
Author(s):  
Mohd Imran Khan ◽  
Valatheeswaran C.
Keyword(s):  
Instrumental Variable ◽  
Capital Investment ◽  
Healthcare Expenditure ◽  
Healthcare Services ◽  
Private Healthcare ◽  
International Remittances ◽  
Variable Approach ◽  
Using Data ◽  
The Impact ◽  
Instrumental Variable Approach

The inflow of international remittances to Kerala has been increasing over the last three decades. It has increased the income of recipient households and enabled them to spend more on human capital investment. Using data from the Kerala Migration Survey-2010, this study analyses the impact of remittance receipts on the households’ healthcare expenditure and access to private healthcare in Kerala. This study employs an instrumental variable approach to account for the endogeneity of remittances receipts. The empirical results show that remittance income has a positive and significant impact on households’ healthcare expenditure and access to private healthcare services. After disaggregating the sample into different heterogeneous groups, this study found that remittances have a greater effect on lower-income households and Other Backward Class (OBC) households but not Scheduled Caste (SC) and Scheduled Tribe (ST) households, which remain excluded from reaping the benefit of international migration and remittances.

scholarly journals Errors-in-Variables Identification in Dynamic Networks by an Instrumental Variable Approach

2014 ◽  
Vol 47 (3) ◽  
pp. 2335-2340 ◽  
Author(s):  
Arne Dankers ◽  
Paul M.J. Van den Hof ◽  
Xavier Bombois ◽  
Peter S.C. Heuberger
Keyword(s):  
Instrumental Variable ◽  
Dynamic Networks ◽  
Errors In Variables ◽  
Variable Approach ◽  
Instrumental Variable Approach

Local Industrial Policy and Sectoral Hubs

2021 ◽  
Vol 111 ◽  
pp. 526-531
Author(s):  
Esteban Rossi-Hansberg ◽  
Pierre-Daniel Sarte ◽  
Felipe Schwartzman
Keyword(s):  
Optimal Policy ◽  
Spatial Model ◽  
Instrumental Variable ◽  
Professional Services ◽  
Specific Production ◽  
Production Externalities ◽  
Industrial Policies ◽  
Coastal Cities ◽  
Variable Approach ◽  
Instrumental Variable Approach

We study the desirability of industrial policies that generate sectoral hubs using a quantitative spatial model with cognitive nonroutine and other occupations. The productivity of each occupation in an industry depends on sector-specific production externalities, which we estimate using a model-implied instrumental variable approach. We find that the optimal policy gives rise to national hubs in coastal cities in tradable services, like professional services, and smaller regional hubs in less tradable services, like health and education. The optimal policy prescribes developing manufacturing in smaller towns. We decompose the implied changes in local costs and the available varieties in each sector.

scholarly journals Origins and Mechanisms of Social Influences in Couples: The Case of Retirement Decisions

2019 ◽  
Vol 35 (6) ◽  
pp. 790-806 ◽  
Author(s):  
Maria Eismann ◽  
Kène Henkens ◽  
Matthijs Kalmijn
Keyword(s):  
Older Workers ◽  
Instrumental Variable ◽  
Early Retirement ◽  
Variable Approach ◽  
Partner Influence ◽  
Course Work ◽  
Self Interest ◽  
Retirement Decisions ◽  
Instrumental Variable Approach ◽  
Large Representative

Abstract The interdependence between partners raises considerable interest in the sociology of life course, work, and families. Partner influences play a particularly important role in the work domain, because each partner’s work decisions have profound effects on the couple as a whole. In contrast to previous research, this article pays detailed attention to the role a partner plays in workers’ labour market decisions by analysing the case of early retirement decisions. We hypothesized that partners’ preferences for older workers’ retirement originate from altruism and self-interest. Moreover, we expected that partners influence older workers’ early retirement behaviour via persuasion and pressure. To adequately estimate partners’ and workers’ preferences for the worker’s retirement, we used an instrumental variable approach. This was possible because we collected multi-actor longitudinal data from a large representative sample of older workers and their partners in the Netherlands. The results support that spousal preferences originate in altruism and self-interest and that partners influence workers through persuasion and pressure. Gender differences in origins and mechanisms of partner influence are also discussed.

scholarly journals Did the Kyoto Protocol fail? An evaluation of the effect of the Kyoto Protocol on CO2emissions

2015 ◽  
Vol 21 (1) ◽  
pp. 1-22 ◽  
Author(s):  
Nicole Grunewald ◽  
Inmaculada Martinez-Zarzoso
Keyword(s):  
Kyoto Protocol ◽  
Data Model ◽  
Instrumental Variable ◽  
Panel Data Model ◽  
Matched Sample ◽  
Difference In Differences ◽  
Variable Approach ◽  
Policy Variable ◽  
The Impact ◽  
Instrumental Variable Approach

AbstractIn this paper, we empirically investigate the impact of the Kyoto Protocol on CO2emissions using a sample of 170 countries over the period 1992–2009. We propose the use of a difference-in-differences estimator with matching to address the endogeneity of the policy variable, namely Kyoto commitments. Countries are matched according to observable characteristics to create a suitable counterfactual. We correspondingly estimate a panel data model for the whole sample and the matched sample and compare the results to those obtained using an instrumental variable approach. The main results indicate that Kyoto Protocol commitments have a measurable reducing effect on CO2emissions, indicating that a treaty often deemed a ‘failure’ may in fact be producing some non-negligible effects for those who signed it.

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