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2017 PAA Annual Meeting, April 27-29, Chicago

NIH funding opportunity: Etiology of Health Disparities and Health Advantages among Immigrant Populations (R01 and R21), open Jan 2017

Russell Sage 2017 Summer Institute in Computational Social Science, June 18-July 1. Application deadline Feb 17.

Russell Sage 2-week workshop on social science genomics, June 11-23, 2017, Santa Barbara

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Mon, Jan 23, 2017 at noon:
Decline of cash assistance and child well-being, Luke Shaefer

Market reactions to export subsidies

Archived Abstract of Former PSC Researcher

Desai, Mihir A., and James Hines. 2008. "Market reactions to export subsidies." Journal of International Economics, 74(2): 459-474.

This paper analyzes the economic impact of export subsidies by investigating stock price reactions to a critical event in 1997. On November 18, 1997, the European Union announced its intention to file a complaint before the World Trade Organization (WTO), arguing that the United States provided American exporters illegal subsidies by permitting them to use Foreign Sales Corporations to exempt a fraction of export profits from taxation. Share prices of American exporters fell sharply on this news, and its implication that the WTO might force the United States to eliminate the subsidy, which happened in 2004. The share price declines were largest for exporters with high profit margins and those whose tax situations made the threatened export subsidy particularly valuable. This evidence suggests that export subsidies do not merely benefit foreign consumers, but also improve the profitability of exporters, particularly those earning rents in imperfectly competitive markets. (c) 2007 Elsevier B.V. All rights reserved.

DOI:10.1016/j.jinteco.2007.04.006 (Full Text)

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