Kiel Institute Advanced Studies in International Economic Policy Research

The Kiel Institute will continue its successful Advanced Studies in International Economic Policy Research with a new program starting in August 2016 :

Macroeconomics in Open Economies  –  Roberto Rigobon (MIT)

Financial Markets and the Macro-Economy  –  Yuliy Sannikov (Princeton)

Debt Crises and Macro-Prudential Policy  –  Enrique Mendoza (Pennsylvania)

Monetary Policy: Theory and Practice  –  Volker Wieland (Frankfurt)

Exchange-Rate Economics  –  Lucio Sarno (London)

Firms in International Trade  –  Marc Melitz (Harvard)

Trade Policy Analysis with Gravity Models  –  Yoto Yotov (Drexel)

Economic Growth  –  Gino Gancia (Barcelona)

Economic Development  –  Marcel Fafchamps (Stanford) 

The 10 month program addresses in particular M.A. graduates who are interested in a career at international organisations, ministries and central banks, financial corporations, research institutes and development institutions, or who wish to improve their chances of admission to PhD programs at renowned universities.

The program is also relevant for economists with some years of professional experience who would like to keep up with recent academic developments in the field, and for PhD candidates who are enrolled at universities without an own PhD program (or who would like to attend the above courses as a complement to their local PhD program). Participation in selected courses of the program is possible.

Detailed information on the program is provided on the Kiel Institute´s website

Weather Shocks, Natural Disasters, and Economic Outcomes

The ‘new weather-economy literature’ applies panel methods to examine how weather-related events such as temperature, precipitation and windstorms affect economic outcomes such as output, labor productivity and conflict.  By capturing exogenous variation in weather related events over time within a given spatial unit, the literature helps inform classic issues of economic development and especially the role of geographic features in influencing development paths.  This in turn contributes to the debate over the competing explanations of institutions and geography in explaining economic development.  Overall, this literature establishes that temperature, precipitation and extreme weather events exert economically meaningful and statistically significant influences on a variety of economic outcomes.  A key finding is that panel estimates tend to predict economically and statistically significant negative impacts of hotter temperatures on per-capita income but only for poor countries.

A branch of this literature examines the effects of natural disasters on economic growth.  In a technical sense, natural disasters have the same appeal as other weather related shocks in that they are exogenous.  Natural disasters are distinguished from other weather related shocks in that they are more destructive.  This feature provides a reasonably straightforward connection to the predictions of growth theory in that the destruction of capital leads initially to an inward shift of the production possibility frontier and so a sharp contraction of growth, but then a recovery process during which the growth rate may be higher than that in the steady state.  Yet there are many subtleties that are amenable to econometric testing.  For example, models based on Schumpeter’s creative destruction process may even ascribe higher growth as a result of negative shocks, as these shocks can be catalysts for reinvesting and upgrading of capital goods.  On the other hand, endogenous growth models that exploit increasing returns to scale in production generally predict that a destruction of part of the physical or human capital stock result in a lower growth path and, consequently, a permanent deviation from the previous growth trajectory.  Also, economic openness that allows for an inflow of capital from abroad and good institutions that can be used effectively to defend property rights should all speed up the recovery process.  Here a consensus appears to be emerging that the initial impact of a shock on growth is indeed negative and that this is followed by a recovery phase during which growth accelerates.  Moreover, better institutional quality, greater openness to trade, and greater financial openness all help support faster recovery.  In future research, the new datasets on weather related shocks and natural disasters could be fruitfully applied to many other questions, including the relation between disasters and trade patterns, migration patterns, poverty and inequality.

Albala-Bertrand, J.-M., (1993); Political Economy of Large Natural Disasters. Oxford, Clarendon Press.

Caballero, R.J., and M.L. Hammour, (1994); “The Cleansing Effect of Recessions.” American Economic Review 84: 1350–1368. [Working paper version]

Cavallo, E., S. Galiani, I. Noy, and J. Pantano, (2013); “Catastrophic Natural Disasters and Economic Growth.” Review of Economics and Statistics, 95(5): 1549–1561. [Working paper version]

Cavallo, E.A., and I. Noy, (2011); “Natural Disasters and the Economy – A Survey.” International Review of Environmental and Resource Economics 5: 63–102. [Working paper version]

Dell, M., B.F. Jones, and B.A. Olken, (2012); “Temperature Shocks and Economic Growth: Evidence from the Last Half Century.” American Economic Journal: Macroeconomics, 4(3): 66-95. [Working paper version]

Dell, M., B. Jones, and B. Olken, (2014); “What Do We Learn from the Weather? The New Climate-Economy Literature.” Journal of Economic Literature, 52(3): 740-798. [Working paper version]

Felbermayr, G., and J. Gröschl, (2014); “Naturally Negative: The Growth Effects of Natural Disasters.” Journal of Development Economics, 111: 92-106. [Working paper version]

Miguel, E., S. Satyanath, and E. Sergenti, (2004); “Economic Shocks and Civil Conflict: An Instrumental Variables Approach.” Journal of Political Economy 112(4): 725-753. [Working paper version]

Welcome new members

We would like to welcome the following new members of the InsTED network.

Prof. Gouranga Das (Hanyang University) His primary research fields are trade and development, computable general equilibrium modeling, technological change, and outsourcing.

Prof. Carl Davidson (Michigan State University) His research falls into two general areas: the influence of labor market structure on issues related to international trade and the development of models of oligopolistic behavior.

Dr. Tim Schmidt-Eisenlohr (The Federal Reserve Board) His research interests include international trade, international finance, international macroeconomics and public economics.

New Working Papers – November 2015

The following working papers have recently been added to our working papers page.

Bartelme, Dominick and Yuriy Gorodnichenko (2015) “Linkages and Economic Development

Boehm, Johannes (2015) “The Impact of Contract Enforcement Costs on Outsourcing and Aggregate Productivity

Bove, Vincenzo, Jean-Philippe Platteau and Petros G. Sekeris (2015)  “Political repression in autocratic regimes

Glaeser, Edward L., Giacomo A. M. Ponzetto and Yimei Zou (2015)  “Urban Networks: Spreading the Flow of Goods, People, and Ideas”  

Peng, Shin-Kun, Raymond Riezman and Ping Wang (2014) “Intermediate Goods Trade, Technology Choice and Productivity

3rd International ESS Conference: “Understanding key challenges for European societies in the 21st century” 13-15th July 2016, Amphimax, University of Lausanne, Switzerland

The 3rd International ESS Conference will showcase research that uses data from the European Social Survey (ESS) to address a range of substantive issues highly relevant to European societies. It will bring together ESS data users from around the world and working across a range of disciplines to share ideas, discuss their results and showcase the depth and breadth of research made possible by the ESS. Papers should address one of the substantive topics covered by the ESS from a comparative perspective either cross-nationally and/or across ESS Rounds.

Papers which draw out practical and policy implications of findings are encouraged. The use of complementary data (contextual data or data from other surveys) is welcome. Papers should be submitted under one of the following themes:

• Immigration

• Labour market, work and family

• Health and well-being

• Welfare and social policy

• Political evaluations and engagement

• Social attitudes, norms and values

• Other societal challenges


Abstracts should be submitted by January 17th 2016


For more information please go to:

The Great Escape: Health, Wealth, and the Origins of Inequality

“The world is a better place than it used to be. People are healthier, wealthier, and live longer. Yet the escapes from destitution by so many has left gaping inequalities between people and nations. In The Great Escape, Angus Deaton–one of the foremost experts on economic development and on poverty–tells the remarkable story of how, beginning 250 years ago, some parts of the world experienced sustained progress, opening up gaps and setting the stage for today’s disproportionately unequal world. Deaton takes an in-depth look at the historical and ongoing patterns behind the health and wealth of nations, and addresses what needs to be done to help those left behind…” [Publisher’s book website]

Author’s book website

Reviews / Comments

Book review by David N. Weil in Journal of Economic Literature, 53(1), 102–114, March 2015.

Book review by Bill Gates, April 2014.

Book review by Kenneth Rogoff in Project Syndicate, January 2014.

Book review by David Leonhardt in The New York Times, December 2013.

Book review by Uwe E. Reinhardt in The New York Times, November 2013.

In sickness and in health by The Economist, October 2013.

Book review by Fred Andrews in  The New York Times, October 2013.

Book review by Edward Hadas in Reuters, October 2013.

Book review by Clive Crook in Bloomberg, October 2013.

Book review by Niranjan Rajadhyaksha in Mint, October 2013.

Book review by Johm McDermott in Financial Times, October 2013.

Book review by Konrad Yakabuski in Globe and Mail, October 2013.

Book review by Charan Singh in Business Standard, October 2013.

Book review by Zack Beauchamp in Think Progress, October 2013

Book review by Kitty Stewart in Times Higher Education, October 2013

Job Opportunity: Tenure-Track Assistant Professor, International Macroeconomics, University of San Francisco, CA

The Department of Economics at the University of San Francisco invites applications for a tenure-track position in the field of International/Open Economy Macroeconomics, broadly defined, at the Assistant Professor level beginning in August 2016, pending approval and funding. Preference is for a supplementary field and/or applied research in Economic History, Trade, Econometrics, Financial Economics, or Political Economy. The USF Economics Department offers an undergraduate Economics major, an MA in Economics, and an MS in International & Development Economics (IDEC).

Available immediately

Link to this opportunity

Call for papers: An International Conference on International Trade

An International Conference on International Trade,

13-16 June 2016, Athens, Greece.


The Athens Institute for Education and Research (ATINER), a world association of academics and researchers, organizes An International Conference on International Trade, 13-16 June 2016, Athens, Greece.


Please submit a 300-word abstract before 16 November 2015, by email (), addressed to Mr. Athanasios Mihalakas, Academic Member, ATINER & Assistant Professor, The State University of New York, at Brockport, USA.

Please include: Title of Paper, First Name, Family name of all co-authors, Current Position of all co-authors, Institutional Affiliation (University/Organization) of all co-authors, Country of all co-authors, an email address of all co-authors and at least 3 keywords that best describe the subject of your submission. Decisions will be reached within four weeks of your submission.


Should you wish to participate in the Conference as a chair of a session, evaluate papers which are to be included in the conference proceedings or books, contribute to the editing of a book, or any other contribution, please send an email to Dr. Gregory T. Papanikos, President, ATINER & Honorary Professor, University of Stirling, UK ().