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Third Quarter 2023

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Posted 2023-07-14

COVID-19: Fiscal Implications and Financial Stability in Developing Countries

by Praew Grittayaphong and Paulina Restrepo-Echavarria

The COVID-19 pandemic has been unlike any other crisis that we have experienced in that it hit all economies in the world at the same time, compromising the risk-sharing ability of nations. At the onset of the pandemic, the World Bank (WB) and the International Monetary Fund (IMF) jointly pledged 1.16 trillion U.S. dollars to help emerging economies deal with COVID-19.

Posted 2023-07-14

TFP, Capital Deepening, and Gains from Trade

by B. Ravikumar, Ana Maria Santacreu, and Michael J. Sposi

Using a dynamic, multicountry model with capital accumulation, we compute the exact transition paths for 93 countries following a permanent, uniform, unanticipated trade liberalization and calculate the resulting welfare gains from trade. We find that while the dynamic gains are different across countries, consumption transition paths look similar except for scale.

Posted 2023-07-14

The Trade-Offs of Counterterrorism Policies

by Subhayu Bandyopadhyay and Todd Sandler

This article provides a modern overview of counterterrorism tools and their trade-offs for curbing terrorist attacks and their consequences. Defensive and proactive countermeasures constitute two main classes of counterterror tools deployed by targeted governments.

Posted 2023-07-14

The Changing Role of Family Income in College Selection and Beyond

by Oksana Leukhina

Previous literature has established that the role of family income has grown substantially at predicting college entry decisions when comparing the 1979 and 1997 National Longitudinal Surveys of Youth (e.g., Belley and Lochner  (2007)). In this article, I further examine the changing role of family income as a determinant of college quality choice, degree attainment, and post-schooling earnings.