Abstract: Did firms shift resources to decarbonization in the wake of the 2015 Paris Agreement on climate change, especially in industries where technology permits relatively cheap low- carbon options? The Paris Agreement marked a key moment in climate cooperation, uniting countries towards a common goal of limiting global temperature increase to well below 2 degrees. […]

Can foreign aid expand fiscal capacity? Drawing on principal–agent theory, I argue that foreign aid builds capacity when the interests of the donor and the political leadership of the recipient state are aligned and when aid administrators in the recipient’s bureaucracy face high-powered incentives to exert effort toward the mission’s goal. Using history as a […]

Abstract: Sovereign default and restructurings should, in theory, lead to creditor punishment through higher borrowing costs or capital market exclusion. However, empirical evidence shows that punishment is inconsistent and not uniform across defaulters. We argue that this disconnect can be explained by examining the role of geopolitical relationships, particularly with the United States, in shaping […]

Abstract: The energy transition has created a global rush for critical minerals that are indispensable for the manufacturing of "green" technology, such as electric vehicles, solar panels, and wind turbines. Critical minerals are predominantly mined, however, on land that is proximate to vulnerable communities, and in developing countries. The environmental toll imposed by mining thus […]

Abstract: While conventional wisdom views divisiveness as an obstacle to engagement among individuals belonging to different ideological camps, this article examines a mechanism that relies on such differences. In a moral trade, individuals with different beliefs exchange commitments on actions pertaining to those beliefs, in a way that is mutually beneficial. If structured correctly, Democrats […]

We investigate the effect of populism in countries experiencing severe economic inequality. We posit that left populist parties use a mix of strong redistribution policies, which tackle the roots of political dissatisfaction, and anti-elite rhetoric, which increases credibility in maintaining the electoral pledges, to build electoral support. In turn, this policy and rhetoric innovation leads […]

Abstract: Transformative political shifts, such as rising polarization, disillusionment with globalization, and the surge of radical parties, have been linked to the disappearance of manufacturing jobs in advanced economies. We argue that the political effects of deindustrialization are shaped by public policy responses. Leveraging the geographic and temporal variation in job losses and active labor […]

Abstract: Technology development is unequal. Existing research suggests that the lack of credible and profitable market demand causes such unequal innovations, leading to the neglect of technologies with low market returns. We study how international organizations (IOs) can mitigate such inequalities. Specifically, IOs can leverage their central role in global aid procurement and provide information […]

The 2010-12 European banking crisis triggered severe recessions, job losses, and austerity measures. In response, member states delegated some bank-supervision authority to the European Union (EU). We argue that blame for a taxpayer-funded bank rescue can be shifted from the government to the EU, especially from Left-wing governments, and especially by Eurosceptic citizens. We also […]

We employ difference-in-differences (DiD) event studies to assess the impact of Trump’s "Liberation Day" tariff announcement on sovereign bond spreads and yields in emerging markets (EMs). We consider a largely unexplored question: how do trade policy shocks affect the cost of EM sovereign borrowing? Using daily data surrounding the tariff announcement, we find that countries […]

Abstract: Despite the well-documented nationalization of local politics over the late 20th century, one type of local organization has flourished: the chamber of commerce. Local chambers, influential interest groups in which firms operating in a given municipality band together to lobby for improved local business conditions, are now present in over 6,700 municipalities across nearly […]

Tackling climate change generates non-rivalrous and non-excludable benefits, while the costs of climate action fall on individual firms. This should incentivize firms to free ride on each others’ efforts. Yet, corporate lobbying on climate issues has increased steadily across sectors. We develop a framework where exposure to climate disasters reduces free-riding by aligning private incentives […]