Research Repository

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Hedonic adaptation to treatment: evidence from a medical intervention (2019)
Journal Article
Owens, T., Barazzetta, M., & Appleton, S. (in press). Hedonic adaptation to treatment: evidence from a medical intervention. Journal of Development Studies,

We investigate whether changes in life circumstances lead to long-lasting changes in subjective well-being using a medical intervention that provided orthotic equipment to Ugandan adults with lower limb disabilities. The intervention had a positive e... Read More

The role of information in nonstationary regression (2019)
Journal Article
Marsh, P. (2019). The role of information in nonstationary regression. Statistics, doi:10.1080/02331888.2019.1605516

The role of standard likelihood based measures of information and efficiency is unclear when regressions involve nonstationary data. Typically the standardized score is not asymptotically Gaussian and the standardized Hessian has a stochastic, rather... Read More

Academic salaries and public evaluation of university research: evidence from the UK Research Excellence Framework (2019)
Journal Article
De Fraja, G., Facchini, G., & Gathergood, J. (2019). Academic salaries and public evaluation of university research: evidence from the UK Research Excellence Framework. Economic Policy,

We study the effects of public evaluation of university research on the pay structures of academic departments. A simple equilibrium model of university pay determination shows how the pay-performance relationship can be explained by the incentives i... Read More

Consumption changes, not income changes, predict changes in subjective well-being (2019)
Journal Article
Brown, G. D. A., & Gathergood, J. (2019). Consumption changes, not income changes, predict changes in subjective well-being. Social Psychological and Personality Science, doi:10.1177/1948550619835215

Does happiness depend on what one earns or what one spends? Income is typically found to have small beneficial effects on well-being. However, economic theory suggests that well-being is conferred not by income but by consumption (i.e., spending on g... Read More

China's "Great Migration": the impact of the reduction in trade policy uncertainty (2019)
Journal Article
Facchini, G., Liu, M. Y., Maria Mayda, A., & Zhou, M. (in press). China's "Great Migration": the impact of the reduction in trade policy uncertainty. Journal of International Economics,

We analyze the effect of China's integration into the world economy on workers in the country and show that one important channel of impact has been internal migration. Specifically, we study the changes in internal migration rates triggered by the r... Read More

Promoting voter registration: the effects of low-cost interventions on behaviour and norms (2019)
Journal Article
Kölle, F., Lane, T., Nosenzo, D., & Starmer, C. (2019). Promoting voter registration: the effects of low-cost interventions on behaviour and norms. Behavioural Public Policy,

We report two studies investigating whether, and if so how, different low-cost interventions affect voter registration rates. Low-cost message-based interventions are increasingly used to promote target behaviours. While growing evidence shows that s... Read More

Discriminating between models of ambiguity attitude: a qualitative test (2019)
Journal Article
Cubitt, R., van de Kuilen, G., & Mukerji, S. (2019). Discriminating between models of ambiguity attitude: a qualitative test. Journal of the European Economic Association, doi:10.1093/jeea/jvz005

During recent decades, many new models have emerged in pure and applied economic theory according to which agents’ choices may be sensitive to ambiguity in the uncertainty that faces them. The exchange between Epstein (2010) and Klibanoff et al. (201... Read More

Cooperation in polygynous households (2019)
Journal Article
Barr, A., Dekker, M., Janssens, W., Kebede, B., & Kramer, B. (2019). Cooperation in polygynous households. American Economic Journal: Applied Economics, 11(2), 266-283. doi:10.1257/app.20170438

Using a carefully designed series of public goods games, we compare, across monogamous and polygynous households, the willingness of husbands and wives to cooperate to maximize household gains. Compared to monogamous husbands and wives, polygynous hu... Read More

The magnitude of the task ahead: macro implications of heterogeneous technology (2019)
Journal Article
Eberhardt, M., & Teal, F. (2019). The magnitude of the task ahead: macro implications of heterogeneous technology. Review of Income and Wealth, doi:10.1111/roiw.12415

The empirical growth literature is dominated by accounting and regression methods which assume common production technology across countries. Our empirical model relaxes this assumption and further allows unobservable determinants of output (Total Fa... Read More

Properties of the power envelope for tests against both stationary and explosive alternatives: the effect of trends (2019)
Journal Article
Marsh, P. (2019). Properties of the power envelope for tests against both stationary and explosive alternatives: the effect of trends. Journal of Time Series Analysis, doi:10.1111/jtsa.12458

This paper details a precise analytic e¤ect that inclusion of a linear trend has on the power of Neyman-Pearson point optimal unit root tests and thence the power envelope. Both stationary and explosive alternatives are considered. The envelope can b... Read More

Wage stickiness, offshoring and unemployment (2019)
Journal Article
Aloi, M., & Hoefele, A. (2019). Wage stickiness, offshoring and unemployment. Economics Letters, 177, 56-59. doi:10.1016/j.econlet.2019.01.025

This note investigates how the effect of offshoring on unemployment is influenced by the wage setting process. We assume staggered wage contracts in an otherwise standard search and matching model. In this setup, the contract wage depends also on exp... Read More

Testing for randomness in a random coefficient autoregression model (2019)
Journal Article
Horváth, L., & Trapani, L. (2019). Testing for randomness in a random coefficient autoregression model. Journal of Econometrics, 209(2), 338-352. doi:10.1016/j.jeconom.2019.01.005

We propose a test to discern between an ordinary autoregressive model, and a random coefficient one. To this end, we develop a full-fledged estimation theory for the variances of the idiosyncratic innovation and of the random coefficient, based on a... Read More

The divergence of bank lending rates from policy rates after the financial crisis: The role of bank funding costs (2019)
Journal Article
Illes, A., Lombardi, M. J., & Mizen, P. (2019). The divergence of bank lending rates from policy rates after the financial crisis: The role of bank funding costs. Journal of International Money and Finance, 93, 117-141. doi:10.1016/j.jimonfin.2019.01.003

After the global financial crisis, policy rates were cut to near-zero levels, yet, bank lending rates did not fall as much as the decline in policy rates would have suggested. If the crisis represents a structural break in the relationship between mo... Read More

Multinationals and the globalization of R&D (2019)
Journal Article
García-Vega, M., Hofmann, P., & Kneller, R. (2019). Multinationals and the globalization of R&D. International Journal of Industrial Organization, 63, 583-614. doi:10.1016/j.ijindorg.2019.01.001

In this paper we consider how the location, organization and output of knowledge production evolve within domestic firms following acquisition-FDI in order to understand the aggregate effect on an index of domestically produced innovations. We find s... Read More

Sign-based Unit Root Tests for Explosive Financial Bubbles in the Presence of Deterministically Time-Varying Volatility (2019)
Journal Article
Harvey, D. I., Leybourne, S. J., & Zu, Y. (2019). Sign-based Unit Root Tests for Explosive Financial Bubbles in the Presence of Deterministically Time-Varying Volatility. Econometric Theory,

This paper considers the problem of testing for an explosive bubble in …nancial data in the presence of time-varying volatility. We propose a sign-based variant of the Phillips, Shi and Yu (2015) test. Unlike the original test, the sign-based test do... Read More

On the priming of risk preferences: the role of fear and general affect (2019)
Journal Article
Alempaki, D., Starmer, C., & Tufano, F. (2019). On the priming of risk preferences: the role of fear and general affect. Journal of Economic Psychology, doi:10.1016/j.joep.2018.12.011

Priming is an established tool in psychology for investigating aspects of cognitive processes underlying decision making and is increasingly applied in economics. We report a systematic attempt to test the reproducibility and generalisability of prim... Read More

Brexit and uncertainty: insights from the decision maker panel (2018)
Journal Article
Bloom, N., Bunn, P., Chen, S., Mizen, P., Smietanka, P., Thwaites±, G., …Parker, N. (2018). Brexit and uncertainty: insights from the decision maker panel. Fiscal Studies, 39(4), 555-580. doi:10.1111/1475-5890.12179

The UK’s decision to leave the EU in the 2016 referendum created substantial uncertainty for UK businesses. The nature of this uncertainty is different from that of a typical uncertainty shock because of its length, breadth and political complexity.... Read More

China's Dual Export Sector (2018)
Book Chapter
Riano, A., & Defever, F. (in press). China's Dual Export Sector. In WTO and Economic Development

China has transitioned from being an almost autarkic economy to become the world's largest exporter in less than three decades. Given this unique transformation, this paper investigates if the key stylized facts that characterize the behavior of fir... Read More

Why are some households so poorly insured? (2018)
Journal Article
Gathergood, J., & Wylie, D. (2018). Why are some households so poorly insured?. Journal of Economic Behavior and Organization, 156, 1-12. doi:10.1016/j.jebo.2018.08.006

We explore empirically how households insure themselves against consumption volatility. We asked households how they would fund an unexpected emergency consumption expense equivalent to one month’s income. Answers reveal a range of consumption insura... Read More

Rented vs. owner-occupied housing and monetary policy (2018)
Journal Article
RUBIO, M. (2019). Rented vs. owner-occupied housing and monetary policy. B.E. Journal of Macroeconomics, 19(1), doi:10.1515/bejm-2016-0110

The aim of this paper is to show how housing tenure (rented vs. owner-occupied) affects monetary policy. I propose a dynamic stochastic general equilibrium model with housing, both owned and rented. First, I analyze how, in the model, preference par... Read More