Dave Donaldson
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View article: International trade since the Washington Consensus: the gains and the pains
International trade since the Washington Consensus: the gains and the pains Open
Controversy has always swirled around ‘trade liberalisation’ – and perhaps more so than for any other policy on Williamson’s original Washington Consensus list. Anti-globalisation protests in the 1990s and early 2000s sharpened scepticism …
View article: The Textbook Case for Industrial Policy: Theory Meets Data
The Textbook Case for Industrial Policy: Theory Meets Data Open
The textbook case for industrial policy is well understood. If some sectors are subject to external economies of scale, whereas others are not, a government should subsidize the first group of sectors at the expense of the second. The empi…
View article: Why is Trade Not Free? A Revealed Preference Approach
Why is Trade Not Free? A Revealed Preference Approach Open
A prominent explanation for why trade is not free is politicians' desire to protect some of their constituents at the expense of others. In this paper we develop a methodology that can be used to reveal the welfare weights that a nation's …
View article: Ghosting the Tax Authority: Fake Firms and Tax Fraud in Ecuador
Ghosting the Tax Authority: Fake Firms and Tax Fraud in Ecuador Open
An important but poorly understood form of firm tax evasion arises from “ghost firms”—fake firms that issue fraudulent receipts so that their clients can claim false deductions. We provide a unique window into this global phenomenon using …
View article: Why is Trade Not Free? A Revealed Preference Approach
Why is Trade Not Free? A Revealed Preference Approach Open
A prominent explanation for why trade is not free is politicians' desire to protect some of their constituents at the expense of others.In this paper we develop a methodology that can be used to reveal the welfare weights that a nation's i…
View article: Misallocation in Firm Production: A Nonparametric Analysis Using Procurement Lotteries
Misallocation in Firm Production: A Nonparametric Analysis Using Procurement Lotteries Open
How costly is the misallocation of production that we might expect to result from distortions such as market power, incomplete contracts, taxes, regulations, or corruption? This paper develops new tools for the study of misallocation that …
View article: Putting Quantitative Models to the Test: An Application to Trump’s Trade War
Putting Quantitative Models to the Test: An Application to Trump’s Trade War Open
The primary motivation behind quantitative modeling in international trade and many other fields is to shed light on the economic consequences of policy changes.To help assess and potentially strengthen the credibility of such quantitative…
View article: Transportation Networks, Short-term Mobility, and Pollution Exposure: Evidence from High-Speed Rail in China
Transportation Networks, Short-term Mobility, and Pollution Exposure: Evidence from High-Speed Rail in China Open
The social costs of pollution and climate change hinge critically on humans' ability to adapt.Based on transaction records from the world's largest payment network, this research compiles daily travel flows and documents that China's rapid…
View article: Blending Theory and Data: A Space Odyssey
Blending Theory and Data: A Space Odyssey Open
This article describes methods used in the field of spatial economics that combine insights from economic theory and evidence from data in order to answer counterfactual questions. I outline a general framework that emphasizes three elemen…
View article: Ghosting the Tax Authority: Fake Firms and Tax Fraud
Ghosting the Tax Authority: Fake Firms and Tax Fraud Open
An important but poorly understood form of firm tax evasion arises from the use of "ghost firms"-fake firms that issue fraudulent receipts so that their clients can claim false deductions.We provide a unique window into this global phenome…
View article: Blending Theory and Data: A Space Odyssey
Blending Theory and Data: A Space Odyssey Open
This article describes methods used in the field of spatial economics that combine insights from economic theory and evidence from data in order to answer counter-factual questions.I outline a general framework that emphasizes three elemen…
View article: Imports, Exports, and Earnings Inequality: Measures of Exposure and Estimates of Incidence
Imports, Exports, and Earnings Inequality: Measures of Exposure and Estimates of Incidence Open
The earnings of individuals depend on the demand for the factor services they supply. International trade may therefore affect earnings inequality because either (i) foreign consumers and firms demand domestic factor services in different …
View article: Replication Data for: 'Imports, Exports, and Earnings Inequality: Measures of Exposure and Estimates of Incidence'
Replication Data for: 'Imports, Exports, and Earnings Inequality: Measures of Exposure and Estimates of Incidence' Open
The programs replicate tables and figures from "Imports, Exports, and Earnings Inequality: Measures of Exposure and Estimates of Incidence", by Adao, Carrillo, Costinot, Donaldson, and Pomeranz. Please see the ACCDP_code_roadmap file for a…
View article: International Trade and Earnings Inequality: A New Factor Content Approach
International Trade and Earnings Inequality: A New Factor Content Approach Open
We develop a new factor content approach to study the impact of trade on inequality. Our analysis generalizes the theoretical results of Deardorff and Staiger (1988) and improves on past empirical implementations of these results. Combined…
View article: Persistence and Path Dependence in the Spatial Economy
Persistence and Path Dependence in the Spatial Economy Open
How much of the spatial distribution of economic activity today is determined by history rather than by geographic fundamentals?And if history matters for spatial allocations, does it also matter for overall e ciency?This paper develops a …