ROBIN BURGESS May 2019 CONTACT INFORMATION LSE
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Does Winning a 'Million Dollar Plant' Increase Welfare?
Bidding for Industrial Plants: Does Winning a ‘Million Dollar Plant’ Increase Welfare? Michael Greenstone MIT, American Bar Foundation and NBER Enrico Moretti University of California, Berkeley and NBER November 2004 We thank Alberto Abadie, Michael Ash, Hal Cole, David Card, Gordon Dahl, Thomas Davidoff, Michael Davidson, Rajeev Dehejia, Stefano Della Vigna, Mark Duggan, Jinyong Hahn, Robert Haveman, Vernon Henderson, Ali Hortacsu, Matthew Kahn, Tom Kane, Brian Knight, Alan Krueger, Steve Levitt, Boyan Jovanovic, David Lee, Therese McGuire, Derek Neal, Matthew Neidell, Aviv Nevo, John Quigley, Karl Scholz, Chad Syverson, Duncan Thomas and seminar participants at Berkeley, Brown, Chicago, Columbia, Illinois, Michigan, NYU, NBER Summer Institute, Rice, Stanford, UCLA, Wharton, and Wisconsin for very helpful discussions. Adina Allen, Ben Bolitzer, Justin Gallagher, Genevieve Pham- Kanter, Yan Lee, Sam Schulhofer-Wohl, Antoine St-Pierre, and William Young provided outstanding research assistance. Greenstone acknowledges generous funding from the American Bar Foundation. Moretti thanks the UCLA Senate for a generous grant. Bidding for Industrial Plants: Does Winning a ‘Million Dollar Plant’ Increase Welfare? Abstract Increasingly, local governments compete by offering substantial subsidies to industrial plants to locate within their jurisdictions. This paper uses a novel research design to estimate the local consequences of successfully bidding for an industrial plant, relative to bidding and losing, on labor earnings, public finances, and property values. Each issue of the corporate real estate journal Site Selection includes an article titled "The Million Dollar Plant" that reports the county where a large plant chose to locate (i.e., the 'winner'), as well as the one or two runner-up counties (i.e., the 'losers'). -
Evidence from the Nox Budget Program†
American Economic Review 2017, 107(10): 2958–2989 https://doi.org/10.1257/aer.20131002 Defensive Investments and the Demand for Air Quality: Evidence from the NOx Budget Program† By Olivier Deschênes, Michael Greenstone, and Joseph S. Shapiro* The demand for air quality depends on health impacts and defensive investments, but little research assesses the empirical importance of defenses. A rich quasi-experiment suggests that the Nitrogen Oxides NO Budget Program NBP , a cap-and-trade market, decreased ( x) ( ) NOx emissions, ambient ozone concentrations, pharmaceutical expenditures, and mortality rates. The annual reductions in pharmaceutical purchases, a key defensive investment, and mortality are valued at about $800 million and $1.3 billion, respectively, suggesting that defenses are over one-third of willingness-to-pay for reductions in NOx emissions. Further, estimates indicate that the NBP’s benefits easily exceed its costs and that NOx reductions have substantial benefits. JEL I12, Q51, Q53, Q58 ( ) Willingness to pay WTP for well-being frequently depends on factors that ( ) enter the utility function directly e.g., the probability of mortality, school qual- ( ity, local crime rates, etc. and compensatory investments that help to determine ) these factors Grossman 1972 . In a wide variety of contexts, the empirical litera- ( ) ture has almost exclusively focused on the direct effects e.g., health outcomes of ( ) these factors and left the defensive investments largely unmeasured. As examples, there has been little effort to measure: the use of medications or air filters to protect against poor air quality e.g., Chay and Greenstone 2003; Currie and Neidell 2005 ; ( ) parental expenditures on supplemental tutoring to improve educational outcomes for their children; or the costs of alarm systems and additional security to protect against crime. -
Good Economics for Hard Times
Good Economics for Hard Times #LSEStamp Professor Esther Duflo Abdul Latif Jameel Professor of Poverty Alleviation. Development Economics in the Department of Economics at the Massachusetts Institute of Technology. Co-founder and co-director of the Abdul Latif Jameel Poverty Action Lab (J-PAL). Professor Robin Burgess Professor of Economics in the Department of Economics at LSE and Director of the International Growth Centre Hosted by the London School of Economics and Political Science Good Economic For Hard Times Abhijit Banerjee and Esther Duflo Most issues that are important today are core economic issues • Brexit • Trade • Immigration • Economic growth • Inequality • Social policy But economists have lost most of their credibility On most core issues people disagree with economists “Imposing new US tariffs on steel and aluminum will improve Americans well-being.” Percentage 35 30 25 20 15 10 5 0 Percentage Average respndents Experts Most economists like migration “The average American Citizen would be better of if a larger number of low- skilled foreign workers were legally allowed to enter the US each year” And they have no interest in listening to them • ADD A PHOTO OF AN ANTI CARBON TAX RALLY, full page (I will just talk through it) Credit: Guillaume Clement, l’Humanite Why this mistrust? Economists are not good forecasters “The only function of economic forecasting is to make astrology look respectable” --John Kenneth Galbraith Four Lessons Lesson 1: incentives are overrated The “Lazy” welfare recipient Alaska permanent fund did not led people to work less Lesson 2: The economy is sticky RIP, Toqueville no one leaves home unless home is the mouth of a shark you only run for the border when you see the whole city running as well your neighbors running faster than you breath bloody in their throats the boy you went to school with who kissed you dizzy behind the old tin factory is holding a gun bigger than his body you only leave home when home won’t let you stay. -
Economics Annual Review 2018-2019
ECONOMICS REVIEW 2018/19 CELEBRATING FIRST EXCELLENCE AT YEAR LSE ECONOMICS CHALLENGE Faculty Interviews ALUMNI NEW PANEL APPOINTMENTS & VISITORS RESEARCH CENTRE BRIEFINGS 1 CONTENTS 2 OUR STUDENTS 3 OUR FACULTY 4 RESEARCH UPDATES 5 OUR ALUMNI 2 WELCOME TO THE 2018/19 EDITION OF THE ECONOMICS ANNUAL REVIEW This has been my first year as Head of the outstanding contributions to macroeconomics and Department of Economics and I am proud finance) and received a BA Global Professorship, will and honoured to be at the helm of such a be a Professor of Economics. John will be a School distinguished department. The Department Professor and Ronald Coase Chair in Economics. remains world-leading in education and research, Our research prowess was particularly visible in the May 2019 issue of the Quarterly Journal of Economics, and many efforts are underway to make further one of the top journals in the profession: the first four improvements. papers out of ten in that issue are co-authored by current colleagues in the Department and two more by We continue to attract an extremely talented pool of our former PhD students Dave Donaldson and Rocco students from a large number of applicants to all our Macchiavello. Rocco is now in the LSE Department programmes and to place our students in the most of Management, as is Noam Yuchtman, who published sought-after jobs. This year, our newly-minted PhD another paper in the same issue. This highlights how student Clare Balboni made us particularly proud by the strength of economics is growing throughout LSE, landing a job as Assistant Professor at MIT, one of the reinforcing our links to other departments as a result. -
Essays in Development Economics
ESSAYS IN DEVELOPMENT ECONOMICS Erika Deserranno A thesis submitted to the Department of Economics of the London School of Economics for the degree of Doctor of Philosophy. London, September 2015 0 1 Declaration I certify that the thesis I have presented for examination for the PhD degree of the London School of Economics and Political Science is solely my own work other than where I have clearly indicated that it is the work of others (in which case the extent of any work carried out jointly by me and any other person is clearly identified in it). The copyright of this thesis rests with the author. Quotation from it is permitted, provided that full acknowledgment is made. This thesis may not be reproduced without my prior written consent. I warrant that this authorization does not, to the best of my belief, infringe the rights of any third party. Statement of Conjoint Work I confirm that Chapter 2 was jointly co-authored with Oriana Bandiera (Professor at the London School of Economics), Robin Burgess (Professor at the London School of Economics), Imran Rasul (Professor at the University College London), Munshi Sulaiman (Researcher at BRAC Africa), Ricardo Morel (Researcher at BRAC Africa). I contributed 50% of the work. 2 Acknowledgment The work contained in this thesis has benefited from the help and support of many people. I am immensely grateful to Oriana Bandiera for her invaluable support and advice throughout, as well as to Robin Burgess and Johannes Spinnewijn for their comments, suggestions and support. I am also very grateful to the members of The Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD) for providing me with a great environment to work and to be in, and to the participants of the Development and Labour economics LSE brown bag seminars. -
Henry Aaron, Brookings Insitution Gilbert Metcalf, Tufts University
An Open Statement Opposing Proposals for a Gas Tax Holiday In recent weeks, there have been proposals in Congress and by some presidential candidates to suspend the gas tax for the summer. As economists who study issues of energy policy, taxation, public finance, and budgeting, we write to indicate our opposition to this policy. Put simply, suspending the federal tax on gasoline this summer is a bad idea and we oppose it. There are several reasons for this opposition. First, research shows that waiving the gas tax would generate major profits for oil companies rather than significantly lowering prices for consumers. Second, it would encourage people to keep buying costly imported oil and do nothing to encourage conservation. Third, a tax holiday would provide very little relief to families feeling squeezed. Fourth, the gas tax suspension would threaten to increase the already record deficit in the coming year and reduce the amount of money going into the highway trust fund that maintains our infrastructure. Signers of this letter are Democrats, Republicans and Independents. This is not a partisan issue. It is a matter of good public policy. Henry Aaron, Brookings Insitution Gilbert Metcalf, Tufts University Joseph Stiglitz, Columbia University (Nobel Prize in Economics, 2001) James Heckman, University of Chicago (Nobel Prize in Economics, 2000) Daniel Kahneman, Princeton University (Nobel Prize in Economics, 2002) Charles Schultze, Brookings Institution (President of the American Economic Association, 1984, Chairman Council of Economic Advisers 1977-1981, Director, Bureau of the Budget, 1965-1967) Alice Rivlin, Brookings Institution (President of the American Economic Association, 1986, Director of O.M.B. -
Evidence from China's National Trunk Highway Systemi Am Grateful to R
Trade Integration, Market Size, and Industrialization: Evidence from China's National Trunk Highway System∗ Benjamin Fabery February 21, 2014 Abstract Large scale transport infrastructure investments connect both large metropolitan centers of production as well as small peripheral regions. Are the resulting trade cost reductions a force for the diffusion of industrial and total economic activity to peripheral regions, or do they reinforce the concentration of production in space? This paper exploits China's National Trunk Highway System as a large scale natural experiment to contribute to our understanding of this question. The network was designed to connect provincial capitals and cities with an urban population above 500,000. As a side effect, a large number of small peripheral counties were connected to large metropolitan agglomerations. To address non-random route placements on the way between targeted city nodes, I propose an instrumental variable strategy based on the construction of least cost path spanning tree networks. The estimation results suggest that network connections have led to a reduction in GDP growth among non-targeted peripheral counties. This effect appears to be driven by a significant reduction in industrial output growth. Additional results present evidence in support of a trade based channel in the light of falling trade costs between peripheral and metropolitan regions. Keywords: Market integration; transport infrastructure; core-periphery; industrialization JEL Classification: F12; F15; O18; R12 ∗I am grateful to Robin Burgess, Dave Donaldson, Henry Overman, Steve Redding and Daniel Sturm for their advice and encouragement, and to Lawrence Crissman at the ACASIAN Data Center at Griffith University for his support with the GIS data. -
Annual Update
NOVEMBER 2018 NEW YORK CITY 1973 NEW YORK CITY 2018 ® Index Index® By Ken Lee and Michael Greenstone Greenstone Michael and Lee Ken By Annual Update Update Annual SEPTEMBER 2021 SEPTEMBER INDEX LIFE QUALITY AIR | ® By Michael Greenstone and Claire Qing Fan, Energy Policy Institute at the University of Chicago Human Health, and Global Policy Twelve Facts about Particulate Air Pollution, Air Quality Life Index Introducing the Executive Summary The contrasting experiences of blue skies in polluted regions of what the future could hold. The difference between those and hazy skies in normally clean regions offer up two visions futures lies in policies to reduce fossil fuels. Over the past year, Covid-19 lockdowns shut industries down In this report, we utilize updated AQLI data to illustrate the and forced vehicles off the roads, momentarily bringing blue opportunities that countries have to allow their people to enjoy skies to some of the most polluted regions on Earth. In India, healthier and longer lives. clean air allowed some communities to view the snow-capped METHODOLOGY Himalayas for the first time in years. But on the other side of In no region of the world are these opportunities greater than The life expectancy calculations made by the AQLI are based on a pair of peer-reviewed studies, Chen et al. (2013) the world, a different story unfolded. Cities like Chicago, New South Asia, which includes four of the five most polluted and Ebenstein et al. (2017), co-authored by Milton Friedman Distinguished Service Professor in Economics Michael York, and Boston—where blue skies have been the norm for countries in the world. -
Michael Greenstone
MICHAEL GREENSTONE CONTACT INFORMATION Massachusetts Institute of Technology Department of Economics 50 Memorial Drive, E52-359 Cambridge, MA 02142-1347 Tel: (617) 452-4127 Fax: (617) 253-1330 Email: [email protected] PERSONAL Marital Status: Married to Katherine Ozment Children: William Pryor Greenstone, Jessica Joan Greenstone and Anne Ozment Greenstone Citizenship: US EDUCATION Ph.D., Economics, Princeton University, 1998 B.A. with High Honors, Economics, Swarthmore College, June 1991 PROFESSIONAL EXPERIENCE ACADEMIC POSITIONS 2006 – 3M Professor of Environmental Economics, MIT 2006 – 2007 Visiting Professor, University of California Energy Institute and University of California, Berkeley, (Economics Department and Center for Labor Economics) 2005 – 2006 Visiting Professor at University of California, Berkeley (Center for Labor Economics) and Stanford (Department of Economics) 2003 – 2006 3M Associate Professor of Economics (with tenure), MIT 2000 – 2003 Assistant Professor of Economics University of Chicago 1998 – 2000 Robert Wood Johnson Scholar, University of California-Berkeley AFFILIATIONS and NONACADEMIC POSITIONS 2010 – present Director, The Hamilton Project 2010 – present Co-Director, Climate Change, Environment and Natural Resources Research Programme, International Growth Centre 2010 – present Senior Fellow (Economic Studies), Brookings Institution 2010 – present Research Associate, National Bureau of Economic Research 2009 – 2010 Chief Economist, Council of Economic Advisers 2008 – present Energy Council, MIT Energy Initiative -
Identifying Agglomeration Spillovers: Evidence from Winners and Losers of Large Plant Openings
Identifying Agglomeration Spillovers: Evidence from Winners and Losers of Large Plant Openings Michael Greenstone Massachusetts Institute of Technology Richard Hornbeck Harvard University Enrico Moretti University of California, Berkeley We quantify agglomeration spillovers by comparing changes in total factor productivity (TFP) among incumbent plants in “winning” coun- ties that attracted a large manufacturing plant and “losing” counties that were the new plant’s runner-up choice. Winning and losing coun- ties have similar trends in TFP prior to the new plant opening. Five years after the opening, incumbent plants’ TFP is 12 percent higher in winning counties. This productivity spillover is larger for plants sharing similar labor and technology pools with the new plant. Con- sistent with spatial equilibrium models, labor costs increase in winning An earlier version of this paper was distributed under the title “Identifying Agglomer- ation Spillovers: Evidence from Million Dollar Plants.” We thank Daron Acemoglu, Jim Davis, Ed Glaeser, Vernon Henderson, William Kerr, Jeffrey Kling, Jonathan Levin, Stuart Rosenthal, Christopher Rohlfs, Chad Syverson, and seminar participants at several con- ferences and many universities for helpful conversations and comments. Steve Levitt and two anonymous referees provided especially insightful comments. Elizabeth Greenwood provided valuable research assistance. Any opinions and conclusions expressed herein are those of the authors and do not necessarily represent the views of the U.S. Census Bureau. All results have been reviewed to ensure that no confidential information is disclosed. Support for this research at the Boston RDC from the National Science Foundation (ITR- 0427889) is also gratefully acknowledged. [ Journal of Political Economy, 2010, vol. 118, no. -
October 2004
ROBIN BURGESS CONTACT INFORMATION LSE Department of Economics Houghton Street, London WC2A 2AE, UK Tel: (020) 7955 6676, Fax: (020) 7955 6951 [email protected] http://econ.lse.ac.uk/staff/rburgess/index_own.html PERSONAL Marital Status: Married to Bronwen Burgess Children: Isla Macbeth Burgess (d.o.b. August 03, 2005) Citizenship: UK PROFESSIONAL EXPERIENCE POSITIONS 2007 – present Professor of Economics, Department of Economics, LSE 2004 – 2007 Reader in Economics, Department of Economics, LSE 1999 – present Co-Director, Economic Organization and Public Policy Programme, STICERD, LSE 2005 Visiting Associate Professor, Department of Economics, University of California, Berkeley, Fall Semester 2003 Visiting Assistant Professor, Department of Economics, Harvard University and National Bureau for Economic Research, Fall Semester 2002 Visiting Assistant Professor, Department of Economics, University College London, Fall Semester 2001 Visiting Assistant Professor, Department of Economics, MIT, Fall Semester 2000 – 2004 Lecturer in Economics, Department of Economics, LSE 1998 – 1999 Lecturer in Development Economics, Development Studies Institute and Department of Economics, LSE 1991 – 1995 Consultant Economist, Chief Economists Office, European Bank for Reconstruction and Development 1989 – 1991 Consultant Economist, World Development Report and Research Department, World Bank AFFILIATIONS 2006 – present Program Director, CEPR Development Economics Program (with Esther Duflo) 2005 – present Senior Fellow, Bureau for Research in the Economic -
October 2004
ROBIN BURGESS CONTACT INFORMATION LSE Department of Economics Houghton Street, London WC2A 2AE, UK Tel: (020) 7955 6676, Fax: (020) 7955 6951 [email protected] http://econ.lse.ac.uk/staff/rburgess/index_own.html PERSONAL Marital Status: Married to Bronwen Burgess Children: Isla Macbeth Burgess (August 03, 2005), Romilly Belle Burgess (May 14, 2009) Citizenship: UK PROFESSIONAL EXPERIENCE POSITIONS 2007 – present Professor of Economics, Department of Economics, LSE 2008 – present Founder and Director, International Growth Centre, LSE 2004 – 2007 Reader in Economics, Department of Economics, LSE 1999 – present Director, Economic Organization and Public Policy Programme, STICERD, LSE 2005 Visiting Associate Professor, Department of Economics, University of California, Berkeley, Fall Semester 2003 Visiting Assistant Professor, Department of Economics, Harvard University and National Bureau for Economic Research, Fall Semester 2002 Visiting Assistant Professor, Department of Economics, University College London, Fall Semester 2001 Visiting Assistant Professor, Department of Economics, MIT, Fall Semester 2000 – 2004 Lecturer in Economics, Department of Economics, LSE 1998 – 1999 Lecturer in Development Economics, Development Studies Institute and Department of Economics, LSE 1991 – 1995 Consultant Economist, Chief Economists Office, European Bank for Reconstruction and Development 1989 – 1991 Consultant Economist, World Development Report and Research Department, World Bank AFFILIATIONS 2006 – present Program Director, CEPR Development Economics