Replication data for: The Welfare Consequences of Income-Induced Expenditure Switching

Principal Investigator(s):  View help for Principal Investigator(s) Rudolfs Bems; Julian Di Giovanni

Version:  View help for Version V1

Name File Type Size Last Modified
FN_GenSharesCES.m text/x-fortran 788 bytes 10/12/2019 09:04:PM
Gen_Figure1.m text/plain 5.6 KB 10/12/2019 09:04:PM
Gen_MandE_data.m text/plain 3 KB 10/12/2019 09:04:PM
Gen_MandE_data_Robust1.m text/plain 3.1 KB 10/12/2019 09:04:PM
Gen_MandE_data_Robust2.m text/plain 2.9 KB 10/12/2019 09:04:PM
Gen_MandE_data_Robust4.m text/plain 3 KB 10/12/2019 09:04:PM
Gen_Table1.m text/plain 5.7 KB 10/12/2019 09:04:PM
Gen_Table1_Robust1.m text/plain 6.1 KB 10/12/2019 09:04:PM
Gen_Table1_Robust2.m text/plain 5.5 KB 10/12/2019 09:04:PM
Gen_Table1_Robust3.m text/plain 5.8 KB 10/12/2019 09:04:PM

Project Citation: 

Bems, Rudolfs, and Di Giovanni, Julian. Replication data for: The Welfare Consequences of Income-Induced Expenditure Switching. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114467V1

Project Description

Summary:  View help for Summary Bems and di Giovanni (2016) establish that income-induced expenditure switching (IIES) from foreign goods to cheaper domestic substitutes played a significant role in external rebalancing during the 2008–2009 financial crisis in Latvia. In this paper, we examine the welfare consequences of IIES under different external sector rebalancing scenarios. We find that IIES reduced the negative welfare consequences that accompany external rebalancing by between 12–17 percent. We also show, using a historical decomposition, that IIES accounted for 18 percent of the 2008–2009 collapse in imports, which is greater than the 14 percent contribution due to the conventional price-induced expenditure switching channel.

Scope of Project

JEL Classification:  View help for JEL Classification
      F14 Empirical Studies of Trade
      F32 Current Account Adjustment; Short-term Capital Movements
      G01 Financial Crises


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V1 [2019-10-13]

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