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on Contract Theory and Applications |
| By: | Xinpeng Xu (Hong Kong Polytechnic University) |
| Abstract: | Multinational firms in a source country often expand or diversify their businesses by exporting to other destination countries. Institution has been identified in the literature to be important in affecting exports. This paper examines how contracting institutional strengths or weaknesses in source as well as destination countries influence export decisions of multinational firms. Our results show that competitive advantages of multinational firms in exports of both homogeneous and heterogeneous goods are eroded by weak contracting institutions in their source countries. We also find that weak contracting institutions in the destination countries exert significant negative impacts on heterogeneous exports but not on homogeneous exports. |
| Keywords: | Institution; Export Heterogeneity; International Trade. |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7508644&r=cta |
| By: | Amanda E. Kowalski (Cowles Foundation, Yale University) |
| Abstract: | I aim to shed light on why emergency room (ER) utilization increased following the Oregon Health Insurance Experiment but decreased following a Massachusetts policy. To do so, I unite the literatures on insurance and treatment e?ects. Under an MTE model that assumes no more than the LATE assumptions, comparisons across always takers, compliers, and never takers can inform the impact of polices that expand and contract coverage. Starting from the Oregon experiment as the “gold standard,” I make comparisons within Oregon and extrapolate my ?ndings to Massachusetts. Within Oregon, I ?nd adverse selection and heterogeneous moral hazard. Although previous enrollees increased their ER utilization, evidence suggests that subsequent enrollees will be healthier, and they will decrease their ER utilization. Accordingly, I can reconcile the Oregon and Massachusetts results because the Massachusetts policy expanded coverage from a higher baseline, and new enrollees reported better health. |
| Keywords: | Compliers, Marginal treatment effect, Massachusetts health reform, Program evaluation, Treated outcome test, Untreated outcome test |
| JEL: | C1 C9 H4 I13 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2135&r=cta |
| By: | Holden, Stein T. (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Tilahun, Mesfin (Centre for Land Tenure Studies, Norwegian University of Life Sciences) |
| Abstract: | Continued high population growth in already densely populated rural areas in parts of SubSaharan Africa makes it harder for youth to choose agriculture as their main source of income. We investigate whether near landless youth can still access rented land as a complementary source of income. We utilize a unique data set of rural youth that have been allocated rehabilitated communal land to form formalized business groups for joint business activity. They rely on complementary sources of income and land renting is one of these. Using data from a sample of 1138 youth business group members from 119 youth groups in five districts in the Tigray region of Ethiopia, we find that land renting is a complementary income source for 29% of these youth. It is the most important source of income for 16.8% of the youth and the second most important source of income for 14% of the youth. Access to rented land is constrained, however. Male youth who own oxen and ploughs are much more likely to be able to rent land. Utilizing a trust game to elicit trust and trustworthiness of the youth, we also found a positive association between trust and access to rented land. Trust reduces transaction costs and more trustworthy youth have better access to rented land. The importance of trust is also illustrated by the dominance of kinship contracts and contracts with close neighbors reducing the costs of monitoring tenants. The dominance of sharecropping contracts also contributes to rationing and low allocation efficiency in the market. The prohibition of land sales also limits the potential of the “agricultural ladder” to facilitate youth climbing out of poverty through purchase of land. |
| Keywords: | Income sources; land-poor rural youth; youth business group members; access to rented land; trust; Ethiopia |
| JEL: | Q15 |
| Date: | 2018–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsclt:2018_006&r=cta |