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.
Do humans cooperate when facing extremely low survival chances? Do preexisting social ties increase one’s chances of survival in life-or-death situations? The authors study Holocaust survival of 30,000 Jewish prisoners who entered the Auschwitz-Birkenau concentration camp on transports from the Theresienstadt ghetto. They find that the availability of potential friends among fellow prisoners significantly improved a prisoner’s chance of survival. Read more
Testing Many Restrictions Under Heteroskedasticity
The authors introduce a novel hypothesis test for testing many restrictions in a heteroskedastic linear regression. The test modifies the conventional F test by correcting the critical value for numerous restrictions and conditional heteroskedasticity. The test is asymptotically valid under many or few restrictions, while simulations suggest excellent size control in moderately small samples. Read more
Make Your Own Luck: The Wage Gains From Starting College In A Bad Economy
Beginning college in a bad economy is good! Analyzing nearly 40 cohorts of American college graduates, this study finds a positive relation between the local unemployment rate at the time of college entry and one's future annual earnings. The effect is greater for women and not driven by selection into employment, selection into enrollment and graduation, field-of-study choice, or economic conditions at labor market entry. Up to one third of the effect is explained by sorting into higher paying states. Read more
Sexual-Orientation Discrimination and Biological Attributions: Experimental Evidence from Russia
Can we mitigate sexual-orientation discrimination by providing more information? Baghumyan explores this question using an online experiment in Russia, measuring discrimination with money allocation tasks. On average, about 54% of participants discriminate against individuals with same-sex partners. Interestingly, the treatment group, which was provided evidence about the potential biological roots of homosexuality, discriminates even more. Read more
Quantitative Easing in the Euro Area: Implications for Income and Wealth Inequality
This study examines the distributional effects of quantitative easing of the European Central Bank in the euro zone. The novelty of this study lies in considering the interaction of labor and financial market segmentation. Compared to models with only financial market segmentation, the results indicate that the said interaction significantly mitigates a decrease in total income inequality and amplifies a rise in wealth inequality. Read more
“Crime and Punishment”? How Banks Anticipate and Propagate Global Financial Sanctions
Mikhail Mamonov, Anna Pestova, and Steven Ongena
Are sanctions on Russian banks effective? The authors analyze the impact of financial sanctions on politically connected banks and their corporate borrowers between 2014 and 2019. The authors find that only the first sanction announcement had a large negative effect, whereas all subsequent announcements had limited impact due to the sale of foreign assets in advance by targeted banks. The banks shrank the supply of corporate loans, which forced the firms to reduce employment and investment. Read more
The overarching theme that ties together all three chapters of his dissertation is the role of information. Information is a crucial component of learning, decision-making, and effective communication, and this dissertation sheds light on the diverse ways in which it can be utilized.
In the first chapter, he delves into a dynamic model of costly information acquisition, which theorizes about decision confidence formation. The second chapter examines a model of strategic information design. Finally, the third chapter presents an experimental investigation into whether human resources (HR) assistants exhibit discriminatory practices in the information they disclose about job candidates based on the candidates’ gender.
We would like to introduce one of our recent PhD graduates: Rastislav Rehák, a Postdoctoral Researcher at the Max Planck Institute for Research on Collective Goods and the University of Cologne. In his research, Rastislav is primarily interested in theoretical work in the areas of information economics and behavioral economics, but also has experience with experiments.
During his PhD studies, Rastislav went for two research stays, one at Harvard University and one at Princeton University. You can read about his Princeton experience at the CERGE-EI Blog.
Rastislav states: “CERGE-EI has provided me with invaluable support in shaping my research. This support came in the form of laying foundations through intensive coursework, broadening my horizons through seminars, and enabling the development of my interests and ideas by funding my research time and mobility. I am especially grateful to my mentors and colleagues who have been a source of inspiration, motivation, and encouragement."
We wish Rastislav all the best in his future career.
Annual Conference of Europe's Labour Economists in Prague
Conflict Economics Symposium Taking Place in London
UPCES Program Makes Central Europe its Classroom
CERGE-EI was the proud organizer of the 35th International Annual Conference of the European Association of Labor Economists (EALE) in Prague on 21-23 September 2023. Hosting over 500 labor economists from across Europe, we had the privilege to listen to top minds in the field, including Michèle Belot, Cornell University; Uta Schönberg, University College London; Gordon B. Dahl, UC San Diego; and CERGE-EI co-founder Jan Švejnar, Columbia University. Read more
CERGE-EI Foundation, together with CERGE-EI and Reaction Media, will host "The Price of War: Understanding Conflict Economics in a Volatile World" symposium on 2 November in London. Our expert speakers, including Prof. Beata Javorcik, Chief Economist of the EBRD; Prof. Peter Frankopan, University of Oxford; and Yuriy Gorodnichenko, UC Berkeley; will discuss the implications and outlooks of economic theatres of conflict. Register your interest and find out how to support our work in Ukraine here.
The UPCES Fall ’23 cohort traveled to Krakow, Poland in mid-October for a long weekend of exploration and learning. Between walking tours to learn the history of Krakow and a full day visit to Auschwitz and Birkenau, students had the chance to complement their classroom learning with meaningful real-world experiences. UPCES makes Central Europe our classroom, and as our program grows and attracts more students, we look forward to continuing to provide impactful experiences to future cohorts.
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