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.
What is the impact of armed conflict on trade in non-combat areas? The authors analyze Ukrainian trade transactions before and after the 2014 Russia-Ukraine conflict. In a difference-in-differences framework, they find that Ukrainian firms from districts with fewer Russian speakers experienced a deeper decline in trade with Russia. The results can be explained by decreased trust and worsened contract enforcement. Read more
Kapička and Rupert combine the SIR epidemic model with a frictional labor market to examine the interaction between infection, wages and unemployment. Optimal policies show that it is often optimal to shut down businesses and impose a quarantine before the pandemic peaks. Moreover, a quarantine must be complemented by additional prescribed policies. All policies depend both on the number of people unemployed and on the number of people infected. Read more
Chasing the Academic Dream: Biased Beliefs and Scientific Labor Markets
Ina Ganguli, Patrick Gaulé, and Danijela Vuletić Čugalj
Is the demand for postdoctoral training in science driven by biased beliefs? The authors analyze data from doctoral students at 56 U.S. chemistry departments, combining a survey with a field experiment in which they randomize the provision of information on historical academic placements. They show that providing the information leads the participants to correct their original, excessively optimistic beliefs. Read more
Who Divorces Whom: Unilateral Divorce Legislation and the Educational Structure of Marriage
Geghetsik Afunts and Štěpán Jurajda
The introduction of unilateral divorce legislation (UDL) in the late 1960s led to the increase of U.S. divorce rates. However, little is known about its impact on the educational structure of marriage. Analyzing data from 1970 to 1988, the authors show that UDL did have an impact, increasing the stability of couples where women have higher education, and making couples with the same education more stable compared to the couples with less educated women. Read more
Setting Interim Deadlines to Persuade
How can a startup persuade an investor to fund a project for a longer time? Senkov studies a game between a start up and an investor and shows that if the project is sufficiently promising ex ante, then the startup commits to providing only the good news that the project was completed. However, if the project is not sufficiently promising, then to lure the investor into starting to invest, the startup also promises to provide the bad news about missing an interim deadline. Read more
Compliance Behavior under Surveillance: Introduction of the Video Assistant Referee to European Football
Do the Video Assistant Referees (VAR) recently introduced to European football in a number of countries make a difference? Trestcov uses the difference-in-difference strategy to analyze the impact of VAR, to learn that it caused a significant decrease in the number of fouls. Moreover, the effect was stronger for punished players, and spills over beyond the surveilled environment to international competitions. Read more
Information, Perceived Returns and College Major Choices December 2022
Kudashvili defended his thesis, titled Essays in Experimental Economics: Discrimination and Education, in December 2022.
In this last chapter of his thesis, coauthored with Todua, Kudashvili uses a novel experimental design to study the direct and indirect effects of information provision on students’ choice of college majors in Georgia. They learn that students systematically overestimated the earnings and unemployment rates of college graduates. When provided additional information, 10% of students changed their final college major choice.The changes in their decisions are partly driven by differences in the perceived and actual unemployment rates, the earning differences do not appear to play a role. Read more
Deadline for Applications to both CERGE-EI Programs is Approaching
Ukraine Emergency Relief Fund
CERGE-EI Students Win the Young Economist of the Year Awards
CERGE-EI’s Master’s in Economic Research and PhD in Economics are Western-style study programs providing excellent preparation not only for a research career but also skills directly applicable in a variety of jobs. Our degrees are recognized in both the U.S. and EU. Deadline for applications for 2023/2024 isMarch 31, 2023. Attend our hybrid Open Day on February 16 or choose another opportunity to learn more from our list of events for study applicants.
CERGE-EI Foundation together with CERGE-EI have so far been able to provide support to 54 economics scholars and educators impacted by the war in Ukraine. Recently, we have been asked by our two Ukrainian partner universities impacted by the blackouts for support to procure emergency generators. The total cost of the generators is $21,000, we still need to raise $18,000 to secure the support. If you are interested in making a donation, you can do so here in USD, CZK, and EUR.
CERGE-EI students and recent graduates once again swept the board at the Czech Economic Society’s Young Economist of the Year award ceremony: Our Master in Applied Economics 2019 graduate Jan Hanousek Jr. (University of South Florida and Mendel University in Brno) won the Young Economist of 2022. Azizbek Tokhirov, 3rd year student at CERGE-EI, won the second place, and the third place went to Ante Shterc, CERGE-EI student and Junior Researcher. Read more