infonet-economy

China’s emergence as a great economic power has induced an epochal shift in patterns of world trade. Simultaneously, it has challenged much of the received empirical wisdom about how labor markets adjust to trade shocks. Alongside the heralded consumer benefits of expanded trade are substantial adjustment costs and distributional consequences. These impacts are most visible in the…

This study explores growth accounting under endogenous technological progress. It is well known that the Solow approach overstates (understates) the contribution of capital accumulation (technological progress) to economic growth and that the Mankiw-Romer-Weil approach addresses this issue. However, we find that the Mankiw-Romer-Weil approach is inconsistent (consistent) with the lab…

In this paper, we quantify the effects of the Earned Income Tax Credit (EITC) from a macroeconomic perspective. We analyze jointly the labor supply and saving responses to changes in tax credit generosity and their aggregate and distributional implications. Our results show that the EITC raises labor force participation, provides insurance to working poor households but also…

We study the impact of liquidity constraints on home ownership by comparing the tenure and housing choice of households who receive intra-family wealth transfers to those that do not. Our analysis is based on household-level panel data providing annual information on household characteristics, wealth transfers, tenure status as well as changes in the size and quality of housing. Our…

Has rising trade integration between the U.S. and China contributed to the polarization of U.S. politics? Analyzing outcomes from the 2002 and 2010 congressional elections, we detect an ideological realignment that is centered in trade-exposed local labor markets and that commences prior to the divisive 2016 U.S. presidential election. Exploiting the exogenous component of rising…

We ask whether the markets expected the Swiss National Bank (SNB) to discontinue the 1.20 cap on the Swiss franc against the euro in January 2015. In the runup to the SNB announcement, neither options on the euro/Swiss franc nor FX liquidity indicated a significant shift in market expectations. Furthermore, we find that the SNB's verbal interventions during the period of cap…

Scant research has examined the role of information and communication technologies (ICTs) for team learning across time. Drawing on theories of team learning, group development, and technological affordances, we provide a multi-method case analysis of emails and interviews that explores how and when team learning occurs. We analyze 468 emails and 20 interviews collected from a team…

This paper examines the impact of postadoption innovation implementation strategies on five distinct performance outcomes. Using a sample of 85 hotels in Europe, the study explores which implementation strategies are most strongly linked to specific innovation outcomes and competitive performance. The results reveal that employee enabling implementation strategies have a positive…

Student loyalty is an important concern for higher education institutions. When an educational institution enhances student loyalty, it is expected to improve its reputation and education quality, student retention, and financial support from alumni. This study develops a model based on the relationship marketing literature to examine student loyalty. It tests the model with two…