Publications of Rafael Dix-Carneiro    :chronological  alphabetical  combined listing:

%% Journal Articles   
@article{fds369022,
   Author = {Dix-Carneiro, R and Pessoa, JP and Reyes-Heroles, R and Traiberman,
             S},
   Title = {Globalization, Trade Imbalances, and Labor Market
             Adjustment*},
   Journal = {Q J Econ},
   Pages = {qjac043},
   Year = {2023},
   Month = {January},
   url = {http://dx.doi.org/10.1093/qje/qjac043},
   Abstract = {We argue that modeling trade imbalances is crucial for
             understanding transitional dynamics in response to
             globalization shocks. We build and estimate a general
             equilibrium, multicountry, multisector model of trade with
             two key ingredients: (i) endogenous trade imbalances arising
             from households’ consumption and saving decisions; (ii)
             labor market frictions across and within sectors. We use our
             model to perform several empirical exercises. We find that
             the “China shock” accounted for 28% of the decline in
             U.S. manufacturing between 2000 and 2014—1.65 times the
             magnitude predicted from a model imposing balanced trade. A
             concurrent rise in U.S. service employment led to a
             negligible aggregate unemployment response. We benchmark our
             model’s predictions for the gains from trade against the
             popular ACR sufficient-statistics approach. We find that our
             predictions for the long-run gains from trade and
             consumption dynamics significantly diverge.},
   Doi = {10.1093/qje/qjac043},
   Key = {fds369022}
}

@article{fds364939,
   Author = {Dix-Carneiro, R and Traiberman, S},
   Title = {Globalization, trade imbalances and inequality},
   Journal = {Journal of Monetary Economics},
   Volume = {133},
   Pages = {48-72},
   Year = {2023},
   Month = {January},
   url = {http://dx.doi.org/10.1016/j.jmoneco.2022.10.002},
   Abstract = {What is the role of trade imbalances for the distributional
             consequences of globalization? We answer this question
             through the lens of a quantitative, general equilibrium,
             multi-country, multi-sector model of trade with four key
             ingredients: (a) workers with different levels of skills are
             organized into separate representative households; (b)
             endogenous trade imbalances arise from households’
             consumption and saving decisions; (c) production exhibits
             capital-skill complementarity; and (d) labor markets feature
             both sectoral mobility frictions and non-employment. We
             conduct a series of counterfactual experiments that
             illustrate the quantitative importance of both trade
             imbalances and capital-skill complementarity for the
             dynamics of the skill premium. We show that modeling trade
             imbalances can lead to stark differences between short- and
             long-run consequences of globalization shocks for the skill
             premium.},
   Doi = {10.1016/j.jmoneco.2022.10.002},
   Key = {fds364939}
}

@article{fds364940,
   Author = {Borusyak, K and Dix-Carneiro, R and Kovak, B},
   Title = {Understanding Migration Responses to Local
             Shocks},
   Year = {2022},
   Month = {April},
   Key = {fds364940}
}

@article{fds364941,
   Author = {Dix-Carneiro, R and Goldberg, PK and Meghir, C and Ulyssea,
             G},
   Title = {Trade and Informality in the Presence of Labor Market
             Frictions and Regulations},
   Year = {2021},
   Month = {April},
   Key = {fds364941}
}

@article{fds364944,
   Author = {Dix-Carneiro, R and Goldberg, P and Meghir, C and Ulyssea,
             G},
   Title = {Trade and Informality in the Presence of Labor Market
             Frictions and Regulations},
   Journal = {Economic Research Initiatives at Duke (ERID) Working
             Paper},
   Number = {302},
   Year = {2021},
   Month = {January},
   Key = {fds364944}
}

@article{fds335429,
   Author = {Dix-Carneiro, R and Kovak, BK},
   Title = {Margins of labor market adjustment to trade},
   Journal = {Journal of International Economics},
   Volume = {117},
   Pages = {125-142},
   Year = {2019},
   Month = {March},
   url = {http://dx.doi.org/10.1016/j.jinteco.2019.01.005},
   Abstract = {We use both longitudinal administrative data and
             cross-sectional household survey data to study the margins
             of labor market adjustment following Brazil's early 1990s
             trade liberalization. We document how workers and regional
             labor markets adjust to trade-induced changes in local labor
             demand, examining various adjustment margins, including
             earnings and wage changes; interregional migration; shifts
             between tradable and nontradable employment; and shifts
             between formal employment, informal employment, and
             non-employment. Our results provide insight into the
             regional labor market effects of trade, and have important
             implications for policies that address informal employment
             and that assist trade-displaced workers.},
   Doi = {10.1016/j.jinteco.2019.01.005},
   Key = {fds335429}
}

@article{fds325540,
   Author = {Dix-Carneiro, R and Soares, RR and Ulyssea, G},
   Title = {Economic shocks and crime: Evidence from the Brazilian trade
             liberalization},
   Journal = {American Economic Journal: Applied Economics},
   Volume = {10},
   Number = {4},
   Pages = {158-195},
   Publisher = {American Economic Association},
   Year = {2018},
   Month = {October},
   url = {http://dx.doi.org/10.1257/app.20170080},
   Abstract = {This paper studies the effect of changes in economic
             conditions on crime. We exploit the 1990s trade
             liberalization in Brazil as a natural experiment generating
             exogenous shocks to local economies. We document that
             regions exposed to larger tariff reductions experienced a
             temporary increase in crime following liberalization. Next,
             we investigate through what channels the trade-induced
             economic shocks may have affected crime. We show that the
             shocks had significant effects on potential determinants of
             crime, such as labor market conditions, public goods
             provision, and income inequality. We propose a novel
             framework exploiting the distinct dynamic responses of these
             variables to obtain bounds on the effect of labor market
             conditions on crime. Our results indicate that this channel
             accounts for 75 to 93 percent of the effect of the
             trade-induced shocks on crime.},
   Doi = {10.1257/app.20170080},
   Key = {fds325540}
}

@article{fds364948,
   Author = {Dix-Carneiro, R and Kovak, BK},
   Title = {Margins of Labor Market Adjustment to Trade},
   Journal = {Economic Research Initiatives at Duke (ERID) Working
             Paper},
   Number = {248},
   Year = {2017},
   Month = {June},
   Key = {fds364948}
}

@article{fds364949,
   Author = {Dix-Carneiro, R and Soares, RR and Ulyssea, G},
   Title = {Economic Shocks and Crime: Evidence from the Brazilian Trade
             Liberalization},
   Year = {2017},
   Month = {May},
   Key = {fds364949}
}

@article{fds364950,
   Author = {Dix-Carneiro, R and Kovak, BK},
   Title = {Trade Liberalization and Regional Dynamics},
   Journal = {USC-INET Research Paper},
   Number = {17},
   Year = {2017},
   Month = {February},
   Key = {fds364950}
}

@article{fds325541,
   Author = {Dix-Carneiro, R and Kovak, BK},
   Title = {Trade Liberalization and Regional Dynamics},
   Journal = {Economic Research Initiatives at Duke (ERID) Working
             Paper},
   Volume = {107},
   Number = {241},
   Pages = {2908-2946},
   Publisher = {American Economic Association},
   Year = {2016},
   Month = {August},
   url = {http://dx.doi.org/10.1257/aer.20161214},
   Doi = {10.1257/aer.20161214},
   Key = {fds325541}
}

@article{fds292945,
   Author = {Dix-Carneiro, R and Kovak, BK},
   Title = {Trade Liberalization and the Skill Premium: A Local Labor
             Markets Approach},
   Journal = {American Economic Review},
   Volume = {105},
   Number = {5},
   Pages = {551-557},
   Publisher = {American Economic Association},
   Year = {2015},
   Month = {May},
   url = {http://dx.doi.org/10.1257/aer.p20151052},
   Doi = {10.1257/aer.p20151052},
   Key = {fds292945}
}

@article{fds338218,
   Author = {Dix-Carneiro, R},
   Title = {Trade Liberalization and Labor Market Dynamics},
   Volume = {82},
   Number = {3},
   Pages = {825-885},
   Publisher = {The Econometric Society},
   Year = {2014},
   url = {http://dx.doi.org/10.3982/ecta10457},
   Abstract = {This paper studies trade-induced transitional dynamics by
             estimating a structural dynamic equilibrium model of the
             labor market. The model features a multi-sector economy with
             overlapping generations, heterogeneous workers, endogenous
             accumulation of sector-specific experience and costly
             switching of sectors. The estimation employs a large panel
             of workers constructed from Brazilian matched
             employer-employee data. The model’s estimates yield high
             average costs of mobility that are very dispersed across the
             population. In addition, sector-specific experience is
             imperfectly transferable across sectors, leading to
             additional barriers to mobility. Using the estimated model
             as a laboratory for counterfactual experiments, this paper
             finds that: (1) there is a large labor market response
             following trade liberalization but the transition may take
             several years; (2) potential aggregate welfare gains are
             significantly mitigated due to the slow adjustment; (3)
             trade-induced welfare effects are very heterogeneous across
             the population; (4) retraining workers initially employed in
             the adversely affected sector may reduce losses incurred by
             these workers and increase aggregate welfare; (5) a moving
             subsidy that covers costs of mobility is more promising for
             compensating losers, although at the expense of higher
             welfare adjustment costs. The experiments also highlight the
             sensitivity of the transitional dynamics with respect to
             assumptions regarding the mobility of physical
             capital.},
   Doi = {10.3982/ecta10457},
   Key = {fds338218}
}

@article{fds292949,
   Author = {Chatterjee, A and Rafael, DC and Vichyanond, J},
   Title = {Multi-product firms and exchange rate fluctuations},
   Journal = {American Economic Journal: Economic Policy},
   Volume = {5},
   Number = {2},
   Pages = {77-110},
   Publisher = {American Economic Association},
   Year = {2013},
   Month = {May},
   ISSN = {1945-7731},
   url = {http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000318431900004&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=47d3190e77e5a3a53558812f597b0b92},
   Abstract = {This paper studies the effect of exchange rate shocks on
             export behavior of multi-product firms. We provide a
             theoretical framework illustrating how firms adjust their
             prices, quantities, product scope, and sales distribution
             across products in the event of exchange rate fluctuations.
             In response to a real exchange rate depreciation, firms
             increase markups for all products, but markup increases
             decline with firm-product-specific marginal costs of
             production. We find robust evidence for our theoretical
             predictions using Brazilian customs data containing
             destination-specific and product-specific export sales and
             quantities. The sample period covers the years 1997-2006,
             during which Brazil experienced a series of drastic currency
             fluctuations.},
   Doi = {10.1257/pol.5.2.77},
   Key = {fds292949}
}

@article{fds292948,
   Author = {Brambilla, I and Dix-Carneiro, R and Lederman, D and Porto,
             G},
   Title = {Skills, exports, and the wages of seven million latin
             American workers},
   Journal = {World Bank Economic Review},
   Volume = {26},
   Number = {1},
   Pages = {34-60},
   Publisher = {Oxford University Press (OUP)},
   Year = {2012},
   Month = {January},
   ISSN = {0258-6770},
   url = {http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000299954700002&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=47d3190e77e5a3a53558812f597b0b92},
   Abstract = {The returns to schooling and the skill premium are key
             parameters in various fields and policy debates, including
             the literatures on globalization and inequality,
             international migration, and technological change. This
             paper explores the skill premium and its correlation with
             exports in Latin America, thus linking the skill premium to
             the emerging literature on the structure of trade and
             development. Using data on employment and wages for over
             seven million workers from sixteen Latin American economies,
             the authors estimate national and industry-specific returns
             to schooling and skill premiums and study some of their
             determinants. The evidence suggests that both country and
             industry characteristics are important in explaining returns
             to schooling and skill premiums. The analyses also suggest
             that the incidence of exports within industries, the average
             income per capita within countries, and the relative
             abundance of skilled workers are related to the underlying
             industry and country characteristics that explain these
             parameters. In particular, sectoral exports are positively
             correlated with the skill premium at the industry level, a
             result that supports recent trade models linking exports
             with wages and the demand for skills. © The Author 2011.
             Published by Oxford University Press on behalf of the
             International Bank for Reconstruction and Development/THE
             WORLD BANK. All rights reserved.},
   Doi = {10.1093/wber/lhr020},
   Key = {fds292948}
}

@article{fds292947,
   Author = {Barroso, LA and Carneiro, RD and Granville, S and Pereira, MV and Fampa,
             MHC},
   Title = {Nash equilibrium in strategic bidding: A binary expansion
             approach},
   Journal = {IEEE Transactions on Power Systems},
   Volume = {21},
   Number = {2},
   Pages = {629-638},
   Publisher = {Institute of Electrical and Electronics Engineers
             (IEEE)},
   Year = {2006},
   Month = {May},
   ISSN = {0885-8950},
   url = {http://dx.doi.org/10.1109/TPWRS.2006.873127},
   Abstract = {This paper presents a mixed integer linear programming
             solution approach for the equilibrium problem with
             equilibrium constraints (EPEC) problem of finding the Nash
             equilibrium (NE) in strategic bidding in short-term
             electricity markets. A binary expansion (BE) scheme is used
             to transform the nonlinear, nonconvex, NE problem into a
             mixed integer linear problem (MILP), which can be solved by
             commercially available computational systems. The BE scheme
             can be applicable to Cournot, Bertrand, or joint
             price/quantity bidding models. The approach is illustrated
             in case studies with configurations derived from the 95-GW
             Brazilian system, including unit-commitment decisions to the
             price-maker agents. © 2006 IEEE.},
   Doi = {10.1109/TPWRS.2006.873127},
   Key = {fds292947}
}

@article{fds292946,
   Author = {Pereira, MV and Granville, S and Fampa, MHC and Dix, R and Barroso,
             LA},
   Title = {Strategic bidding under uncertainty: A binary expansion
             approach},
   Journal = {IEEE Transactions on Power Systems},
   Volume = {20},
   Number = {1},
   Pages = {180-188},
   Publisher = {Institute of Electrical and Electronics Engineers
             (IEEE)},
   Year = {2005},
   Month = {February},
   url = {http://dx.doi.org/10.1109/TPWRS.2004.840397},
   Abstract = {This work presents a binary expansion (BE) solution approach
             to the problem of strategic bidding under uncertainty in
             short-term electricity markets. The BE scheme is used to
             transform the products of variables in the nonlinear bidding
             problem into a mixed integer linear programming formulation,
             which can be solved by commercially available computational
             systems. The BE scheme is applicable to pure price, pure
             quantity, or joint price/quantity bidding models. It is also
             possible to represent transmission networks, uncertainties
             (scenarios for price, quantity, plant availability, and
             load), financial instruments, capacity reinforcement
             decisions, and unit commitment. The application of the
             methodology is illustrated in case studies, with
             configurations derived from the 80-GW Brazilian system. ©
             2005 IEEE.},
   Doi = {10.1109/TPWRS.2004.840397},
   Key = {fds292946}
}