Located in Prague, CERGE-EI is dedicated to excellence and innovation in economic research and education. Chartered by the State of New York, CERGE-EI is a joint workplace of Charles University and the Czech Academy of Sciences, and is supported by numerous donors.
V. Bartoš, M. Bauer, J. Cahlíková, and J. Chytilová Nature606: 542–549
What fraction of Czech doctors trusted the Covid-19 vaccines? Authors surveyed 9,650 doctors, finding trust in the vaccine from 90% of them. In contrast, 90% of respondents in a nationally representative sample heavily underestimated doctors' trust, typically thinking doctors are divided. Finally, the authors show that a randomized provision of the true doctors' views re-calibrates beliefs and persistently increases vaccine uptake. Read more
The skill premium and individual wage risk have both increased significantly in the United States in the last five decades. Slavik and Yazici explore the phenomena using a quantitative macroeconomic model. They show that the rise in wage risk observed between 1967 and 2010 leads to higher precautionary savings. This, in turn, increases the skill premium significantly due to capital-skill complementarity. Read more
The Long-Run Effects of R&D Place-Based Policies: Evidence from Russian Science Cities
What are the long-run effects of place-based R&D policies? Analyzing “Science Cities” established in the former Soviet Union, the authors show that these cities are more innovative and productive, host more highly skilled workers, and pay them higher salaries than localities that were ex-ante similar to them. They show that these results are driven by the interaction between local persistence and agglomeration forces. Read more
Proximity to Help Matters: The Effect of Access to Centers of Legal Aid on Bankruptcy Rates
Kristína Hrehová and Štefan Domonkos
Personal bankruptcy aims to provide a fresh start to debtors. Hrehová and Domonkos study the impact of spatial distance from public Centers for Legal Aid (CLAs) on the regional incidence of personal bankruptcy in Slovakia. They identify a statistically and substantively significant impact—municipalities with good access to free legal aid services had significantly higher bankruptcy rates compared to municipalities with weak access. Read more
Exploring Border Effects: Sensitivity of Cigarette Consumption to Excise Tax
This study shows that border effects distort estimated consumption sensitivity to increases in excise tax rates. Consumers who are farther from the border of a lower-tax state are more sensitive to excise tax increase. Hence, border residents decrease the impact of excise tax policy interventions on consumer choice. Policy makers should therefore consider the possibility of tax avoidance by border residents in the design of tax schemes. Read more
Trading Volume and Liquidity Provision in Cryptocurrency Markets
D. Bianchi, M. Babiak, and A. Dickerson
Due to their extreme volatility, frequent crashes, and relatively low transparency cryptocurrency markets present a fascinating playground for examining the links between risks and returns. The authors explore these markets to learn that returns from liquidity provision are primarily concentrated in trading pairs with lower levels of market activity, and that the expected returns are amplified in smaller, more volatile, and less liquid cryptocurrency pairs. Read more
Spillovers in the Eurozone Sovereign Bond Market: Causes and Dynamics
In this chapter of his thesis, Štefko investigates dynamics of spillovers within the set of four most liquid Eurozone government bond futures during 2016-2020. He identifies a moderately interconnected system, with connectedness rising sharply following geopolitical or macroeconomic shocks, such as Covid-19. Interestingly, Italian bond futures are the principal spillovers transmitter of regional events, despite their relatively lower traded volume. Read more
Economic Disruption, Life Satisfaction, and Political Attitudes June 2022
We featured the first two chapters of Travova’s thesis as Working Papers in earlier issues of Insights. In this last chapter, Travova, jointly with Menzel and Koenig, explores the long-run effects of work-life disruptions during the transition in 11 former communist CEE countries. They identify a significant negative impact of the experience on life satisfaction and a shift in political orientation to the right. Read more
Inattentive Price Discovery in Exchange-Traded Funds September 2022
The first chapter of Mikhalishchev’s thesis was published in the Journal of Economic Theory in 2021. In this chapter, he, together with Mariia Kosar, explores the information choice of exchange-traded funds (ETF) investors, and its impact on the price efficiency of underlying stocks. They provide novel evidence on how the investors acquire information and how the ETFs propagate idiosyncratic shocks across its constituencies. Read more
Webinar: Labor Economics Yesterday, Today, and Tomorrow
Launch of Stapleton Scholars Award
Mariola Pytliková and Marek Kapička are leading two research packages within a project funded by the National Recovery Plan via the EXCELES program—a program aimed at learning from the unprecedented challenges brought about by the Covid-19 pandemic. Pytliková leads the “Social impacts of the pandemic and the labour market” and Kapička the “Economic Impacts of Pandemic.” Read more.
CERGE-EI Foundation’s Distinguished Speaker Series continued with a webinar with our board member Orley Ashenfelter, Joseph Douglas Green 1895 Professor of Economics at Princeton University. In a dialogue with CERGE-EI Alumna Barbara Pertold-Gebická, Orley shared his unique and extensive experience in the field of labor economics with participants from 18 countries. You can watch the recording here.
The CERGE-EI Foundation gratefully acknowledges a generous donation from Craig Roberts Stapleton, member of the CERGE-EI Foundation Board, former American Ambassador to the Czech Republic, and a long-term friend of CERGE-EI. To mark CERGE-EI’s 30th anniversary, the Stapleton Scholars Award will enable top-performing CERGE-EI students to pursue mobility research stays at leading US universities. Read more.