Events - Economics

Oct
27

Dr. Pedro Gete, IE Business School

Friday, October 27, 2 p.m.

Dr. Gete will present Mortgage Finance, Liquidity Traps, and Slow Recoveries”

Abstract
We quantify that the recourse mortgages dominant in the European housing systems can account for 38% of the post Great-Recession gap in per capita consumption between the USA and Europe. The result is mostly accounted for by general equilibrium effects through lower housing prices and weak demand for labor. We show that, even with foreclosures costs, in a liquidity trap mortgage regulations that allow for default are welfare dominant to regulations that discourage it. In terms of methodology, we show that models of liquidity traps with long-term debt, endogenous housing prices and default significantly amplify the impact and persistence of financial shocks.

406
Nov
06

Dr. Alexandre Mas, Princeton University

Monday, November 6, 12 p.m.

Dr. Mas’ research has dealt with fairness considerations and norms in the labor market, social interactions, neighborhood segregation, the labor market effects of credit market disruptions, and unions.

722
Nov
10

Dr. Daniel Yi Xu, Duke University

Friday, November 10, 2 p.m.

Dr. Xu will present “Notching R&D Investment with Corporate Income Tax in China”

Dr. Xu’s most recent work has been published in the Rand Journal of Economics, the World Bank Economic Review, the American Economic Review and the Review of Economic Dynamics. He is currently working on projects that explore innovation, productivity, exporting and industry dynamics, with a special focus on East Asian emerging economies such as China, Taiwan, and Korea.n.

722
Dec
01

Dr. Michael Smart, University of Toronto

Friday, December 1, 2 p.m.

An estimable model of income redistribution in a federation: Musgrave Meets Oates

Abstract
We develop a theory of cross-border income shifting in response to personal taxation,
and examine its implications for the revenue potential and excess burden of personal taxes
at the subnational level. We estimate the elasticity of tax avoidance and of cross-border tax
base shifting using data on top income shares for Canadian provinces, finding that interprovincial
shifting accounts for about two-thirds of total tax avoidance. We then propose a
model demonstrating that a properly-chosen federal tax rate can offset the horizontal fiscal
externality, allowing decentralized subnational tax rates to replicate the national welfare
optimum.

406