Found 9 article(s) for author 'Rafael Di Tella'

Labor Market Shocks and the Demand for Trade Protection: Evidence from Online Surveys

Labor Market Shocks and the Demand for Trade Protection: Evidence from Online Surveys. Rafael Di Tella, Dani Rodrik, January 16, 2019, Paper, “We study preferences for government action in response to layoffs resulting from different types of labor-market shocks. We consider the following shocks: technological change, a demand shift, bad management, and three kinds of international outsourcing. Respondents are given a choice among no government action, compensatory transfers, and trade protection. In response to these shocks, support for government intervention generally rises sharply and is heavily biased towards trade protection. Demand for import protection increases significantly in all cases, except for the “bad management” shock. Trade shocks generate more demand for protectionism, and among trade shocks, outsourcing to a developing country elicits greater demand for protectionism than outsourcing to a developed country. The “bad management” shock is the only scenario that induces a desired increase in compensatory transfers; it is also the only case without a significant increase in desired trade protection. Effects appear to be heterogeneous across subgroups with different political preferences and education. In particular, Trump supporters are more protectionist than Clinton supporters. But preferences seem malleable and easy to manipulate: Clinton supporters primed with trade shocks are as protectionist as baseline Trump voters.Link

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Rafael Di Tella on economic inequality, policy making for the criminal justice system, and fairness in labor markets

Rafael Di Tella on economic inequality, policy making for the criminal justice system, and fairness in labor markets April 2018. GrowthPolicy’s Devjani Roy interviewed Rafael Di Tella, William Ziegler Professor of Business Administration at Harvard Business School, on economic inequality, policy making for the criminal justice system, and fairness in labor markets. | Click here […]

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Meet the Oligarchs: Business Legitimacy, State Capacity and Taxation

Meet the Oligarchs: Business Legitimacy, State Capacity and Taxation. Rafael Di Tella, June 11, 2016, Paper, “We analyze the role of people’s beliefs about the rich in the determination of public policy. A question we study is the desirability of government-private sector meetings, a variable we argue is connected to State capacity. Survey respondents primed with negative views about business leaders want fewer of these meetings, as well as higher taxes to the top 1% and more regulation. We also study how these effects change when subjects are primed with negative views about government. A model helps interpret these findings.Link

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Private Legitimacy and Public Capacity: The Role of Meetings between Regulators and the Private Sector

Private Legitimacy and Public Capacity: The Role of Meetings between Regulators and the Private Sector. Rafael Di Tella, June 8, 2015, Paper. “We analyze why countries where the public has a positive image of the private sector, are also countries where there are high-quality policies in place. In other words, why is private legitimacy correlated with state capacity? We show in a theoretical and experimental way that if the public distrusts businessmen, it will not allow meetings between businessmen and government officials to take place. These meetings are allowed in countries where businessmen are highly regardedLink

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A Currency We Can Call Our Own: Populism, Banking Crises, and Exchange Rate Crises in Argentina, 1946-2002

A Currency We Can Call Our Own: Populism, Banking Crises, and Exchange Rate Crises in Argentina, 1946-2002, Rafael Di Tella, October 2014, Case. “The case describes Argentina’s struggle to establish a credible monetary system under populist pressures and the recurrent use of exchange rate stabilization plans. It focuses on two episodes where there was “too little money” in the economy: during the hyperinflation episodes during the late 1980’s-when money demand collapsed and the early 2000’s when the supply of money collapsed under a hard currency peg…” Link

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Inequality and Growth in the ‘Chinese Dream’

Inequality and Growth in the ‘Chinese Dream’. Rafael Di Tella, Meg Rithmire, March 2014, Case. “Xi Jinping assumed his position as head of China’s fifth generation of leaders in 2012. Xi was head of both the People’s Republic of China and the Chinese Communist Party, which had ruled China since 1949. Xi inherited a country far more unequal than the one that Mao Zedong, Communist China’s first leader, had left behind in 1978. The growth of markets had made China much wealthier, but also generated many social problems, including inequality, corruption, and social protests. This case…” May require purchase or user account. Link verified August 21, 2014

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Latvia: Navigating the Strait of Messina

Latvia: Navigating the Strait of Messina. Rafael Di Tella, April 1, 2013, Case. “This case describes Latvia’s transition from a Soviet republic into an EU member, its economic boom and subsequent bust in 2008, and its policy response. After implementing significant economic and political reforms in order to qualify for EU membership in 2004, Latvia had turned its sights toward joining the single-currency eurozone, pegging its currency to the euro in 2005 as a step toward that goal. From 2000 to 2007, Latvia achieved faster GDP growth than any EU state. However, when large inflows…”  May require purchase or user account. Link verified March 28, 2014

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Fairness and Redistribution: Comment

Fairness and Redistribution: Comment. Rafael Di Tella, 2013, Paper. “In an influential paper, Alesina and Angeletos (2005)—henceforth, AA—argued that a preference for fairness could lead two identical societies to choose different economic systems. In particular, two equilibria might arise: one with low taxes and a belief that the income-generating process is “fair” because effort is important (an “American” equilibrium) and another with high taxes and the belief that the process is “unfair” because luck prevails. Piketty (1995) had shown that a similar pattern could arise from standard preferences if initial beliefs…” Link verified March 28, 2014

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Happiness, Contentment and other Emotions for Central Banks

Happiness, Contentment and other Emotions for Central Banks. Rafael Di Tella, November 7, 2007, Paper. “We show that data on satisfaction with life from over 600,000 Europeans are negatively correlated with the unemployment rate and the inflation rate. Our preferred interpretation is that this shows that emotions are affected by macroeconomic fluctuations. Contentment is, at a minimum, one of the important emotions that central banks should focus on. More ambitiously, contentment might be considered one of the components of utility. The results may help central banks understand the tradeoffs that the public is willing to accept in terms of unemployment for inflation, at least in terms of keeping the average level of one particular emotion (contentment) constant…” Link

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