NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Alejandro Cuñat

Department of Economics
University of Vienna
Oskar Morgenstern Platz 1
A-1090 Vienna
Austria

E-Mail: alejandro.cunat@univie.ac.at

NBER Working Papers and Publications

May 2018The Real Exchange Rate, Innovation and Productivity: Regional Heterogeneity, Asymmetries and Hysteresis
with Laura Alfaro, Harald Fadinger, Yanping Liu: w24633
We evaluate manufacturing firms' responses to changes in the real exchange rate (RER) using detailed firm-level data for a large set of countries for the period 2001-2010. We uncover the following stylized facts: In export-oriented emerging Asia, real depreciations are associated with faster growth of firm-level TFP, higher sales and cash-flow, and higher probabilities to engage in R&D and to export. We find negative effects for firms in other emerging economies, which are relatively more import dependent, and no significant effects for firms in industrialized economies. Motivated by these facts, we build a dynamic model in which real depreciations raise the cost of importing intermediates, affect demand, borrowing-constraints and the profitability of engaging in innovation (R&D). We decom...
April 2007Volatility, Labor Market Flexibility, and the Pattern of Comparative Advantage
with Marc J. Melitz: w13062
This paper studies the link between volatility, labor market flexibility, and international trade. International differences in labor market regulations affect how firms can adjust to idiosyncratic shocks. These institutional differences interact with sector specific differences in volatility (the variance of the firm-specific shocks in a sector) to generate a new source of comparative advantage. Other things equal, countries with more flexible labor markets specialize in sectors with higher volatility. Empirical evidence for a large sample of countries strongly supports this theory: the exports of countries with more flexible labor markets are biased towards high-volatility sectors. We show how differences in labor market institutions can be parsimoniously integrated into the workhorse mo...

Published: “Volatility, Labor Market Flexibility and Comparative Advantage” (joint with Alejandro Cunat), Journal of the European Economic Association citation courtesy of

 
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