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Life Expectancy, Schooling, and Lifetime Labor Supply: Theory and Evidence Revisited

Econometrica 2013 81(5), 2055-2086 open access
This paper presents a theoretical and empirical analysis of the role of life expectancy for optimal schooling and lifetime labor supply. The results of a simple prototype Ben-Porath model with age-specific survival rates show that an increase in lifetime labor supply is not a necessary, or a sufficient, condition for greater life expectancy to increase optimal schooling. The observed increase in survival rates during working ages that follows from the “rectangularization” of the survival function is crucial for schooling and labor supply. The empirical results suggest that the relative benefits of schooling have been increasing across cohorts of U.S. men born between 1840 and 1930. A simple quantitative analysis shows that a realistic shift in the survival function can lead to an increase in schooling and a reduction in lifetime labor hours.

Human Capital Formation, Life Expectancy, and the Process of Development

American Economic Review 2005 95(5), 1653-1672
We provide a unified theory of the transition in income, life expectancy, education, and population size from a nondeveloped environment to sustained growth. Individuals optimally trade off the time cost of education with its lifetime returns. Initially, low longevity implies a prohibitive cost for human capital formation for most individuals. A positive feedback loop between human capital and increasing longevity, triggered by endogenous skill-biased technological progress, eventually provides sufficient returns for widespread education. The transition is not based on scale effects and induces population growth despite unchanged fertility. A simulation illustrates that the dynamics fit historical data patterns.

Income and Democracy: Comment

American Economic Review 2014 104(2), 707-719
Acemoglu et al. (2008) document that the correlation between income per capita and democracy disappears when including time and country fixed effects. While their results are robust for the full sample, we find evidence for significant but heterogeneous effects of income on democracy: negative for former colonies, but positive for non-colonies. Within the sample of colonies we detect heterogeneous effects related to colonial history and early institutions. The zero mean effect estimated by Acemoglu et al. (2008) is consistent with effects of opposite signs in the different subsamples. Our findings are robust to the use of alternative data and estimation techniques. (JEL D72, O17, O47)

Random Votes to Parties and Policies in Coalition Governments

Econometrica 2024 92(5), 1553-1588 open access
We exploit a natural experiment involving a randomization of votes across parties within coalitions in all local elections in Italy for over a decade. A lottery on the position of party symbols in the ballot papers allows estimating the causal effect of increasing votes to parties for coalition policies. A non‐marginal random boost of votes shifts budgetary spending towards the treated party's platform, but only for issues that are salient in that party's political manifesto. We study the chains of mechanisms mapping votes into policies and link it to an increase in bargaining power within legislative majorities. Parties leverage their higher electoral support to gain the appointment of politically affiliated cabinet members. Empowering different parties also leads to the selection of cabinets with different socio‐demographic characteristics. The unintentional experiment helps shed new light on mechanisms mapping votes to parties into coalition policies.

Epidemic Shocks and Civil Violence: Evidence from Malaria Outbreaks in Africa

The Review of Economics and Statistics 2022 104(4), 780-796 open access
Abstract This paper presents the first systematic investigation of the effect of epidemic shocks on civil violence. The identification exploits exogenous within cell × year variation in conditions that are suitable for malaria transmission using a panel database with month-by-month variation at a resolution of 1∘×1∘ latitude/longitude for Africa. Suitable conditions increase civil violence in areas with populations susceptible to epidemic outbreaks. The effect is immediate, related to the acute phase of the epidemic and largest during short harvesting seasons of subsistence crops. Genetic immunities and antimalaria policies attenuate the effect. The results deliver new insights for prevention and attenuation policies and for potential consequences of climate change.