Sanctions against Russia following the annexation of Crimea reduced consumption in Russia by 1.4 percent - Simulations show that the potential for sanctions could have been higher - Involvement of emerging economies would have increased sanction pressure - Sanctions caused greater losses for small economies in the proximity of Russia than for large economies - Burden-sharing funds could reduce asymmetries With ...
What is the “right” geographic definition of relevant markets? We study how unexpected and exogenous increases in excise duties in petroleum products were passed-through to retail prices in the Athens region and examine how the degree of the pass-through varies across different geographic relevant markets. Using various definitions of the relevant geographic market, we find that the most...
Whether trade can achieve societal change is a contested topic and difficult to investigate. This round-up aims at summarizing recent empirical research on this topic while focusing on democracy and democratization as an important part of societal change. No robust results for change arising from trade can be found, but there exists an inverse causality, i.e., democratization leading to more trade...
This paper studies how bargaining power is affected by merger and divestiture policies. I provide a new empirical framework to compute bounds on brand-level bargaining weights using widely available sales data. Next, I exploit the variation in brand ownership caused by a large merger, cleared conditional on divestiture, in the U.S. deodorant market, to quantify the extent to which divestitures...
International trade separates the location where emissions occur (production) and where they are ultimately consumed. Thus, a substantial share of emissions is embodied in international trade. Moreover, firms within narrowly defined industries differ in their emission intensity. However, most firm-level studies only consider the direct emissions released during the production process. In this...
This study examines short-, medium-, and long-run price expectations in housing markets. At the heart of our analysis is the combination of data from a tailored in-person household survey, past sale offerings, satellite imagery on developable land, and an information treatment (RCT). As novel finding, we show that price expectations show no evidence for momentum-effects in the long run. We also do ...
This paper empirically analyses the impact of government ownership on competition in monopoly and duopoly markets. We use the European Airline Industry as a laboratory. In our empirical strategy we exploit two sources of exogenous variations that allow us to cleanly filter out the effect of government ownership on the likelihood of exit. First, we study government ownership that was triggered by a...