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In 2018, EPoS has funded the following data aquisitions and/or data collections:

 

Promoting equality of opportunity and changing students’ beliefs about returns to effort and education

Contact person: Fabian Kosse, former member of A01

The CRC identifies the question “How to promote equality of opportunity?” as a major societal challenge. Previous research has shown that especially students from disadvantaged families hold biased belief about returns to education in general and effort in particular. They systematically underestimate the returns to effort and education and therefore underinvest in learning effort. This creates a vicious circle: students from disadvantaged families hold negative beliefs about returns to effort and schooling, according to their beliefs they invest too little, this leads to bad education outcomes and manifests intergeneration persistence. Therefore, the aim of this project is to explore if the introduction of an affirmative action (AA) policy holds the potential to adjust these biased beliefs and thereby promote equality of opportunity.

Funds of the CRC TR 224 have been used to collect belief specific information of more than 6000 students in 128 schools in Chile. The data collection was conducted in form of a paper & pencil survey by the polling institution FOCUS (ESTU-DIOS Y CONSULTORÍAS FOCUS) in Chile.


Understanding Parental Decision-making: Beliefs about Returns to Parenting Styles and Neighborhoods

Contact person: Lukas Kießling, A02

This project focuses on early-life determinants of inequalities by analyzing the interplay of parental decision-making and neighborhoods on subsequent child outcomes. In order to do this, I collect novel data from a large sample of parents on their beliefs over the effectiveness different parenting styles and link their responses to detailed neighborhood characteristics. This study will therefore contribute to our understanding of the intergenerational transmission of inequality.

 

A setback set right? The Intermediating Role of the Education System in the Event of Family Distress

Contact person: Renske Stans, A02

Education plays a vital role to establish equality of opportunity, as it is one of the key determinants for human capital development. In order to know whether children are given equal chances, it is therefore important to understand how the education system interacts with unequal circumstances. Previous studies in economics mainly focus on the relation between the educational set-up and differences in children's socioeconomic backgrounds. Instead, this project analyses whether and how the design of the education system interacts with children experiencing events of family distress. More specifically, I focus on situations of (grand)parental bereavement at the time of critical transition periods within the education system.

By employing Dutch administrative records, I am able to detect children who experience the death of a (grand)parent either during the 6-months before or after a critical transition period. By comparing these two groups of children, I can identify 1) the direct effect of these setbacks on academic performance during the critical period, and 2) the mediating effect of the educational transition in the case of setbacks on longer-term outcomes. In addition, I use survey data to investigate potential underlying channels, such as changes in parental investments.

 

Disparities in Access to Cancer Treatment and Health Outcomes: Evidence from Ontario

Contact person: Laura Grigolon, B03

Laura Lasio (Assistant Professor at McGill) and I have been approved to access patient-level data from a Canadian Institute (see attachment). The broad purpose of the project is to investigate disparities in access to cancer treatment and health outcomes. In particular, we would like to focus on the effect of uncertainty in the choice of therapy for cancer. Economist are concerned with the behavioral implications of uncertainty in experience good markets. Uncertainty matters when you purchase a car or buy cereals, if utility-bearing characteristics are revealed to you through consumption or use. This aspect may be particularly important in the choice of treatments because oncologists operate in an uncertain environment in terms of effectiveness and side effects.

This project will explore the extent of disparities in cancer care across hospitals and its impact on consumers’ (patients) welfare. In particular, it will identify the drivers of such heterogeneity and, specifically, how it is affected by the rules governing funding of systemic treatment (chemotherapy, biotherapy and immunotherapy). In 2014, a reform in Ontario defined a set of evidence-informed treatment options determined and validated by expert groups, excluding funding for obsolete ones. We will use the reform to identify (i) whether and how the rationalization of the regimens affected clinical practice; (ii) whether physicians in different cancer facilities reacted differently to the reform, distinguishing between early and late adopters of the most updated regimens. Finally, our work will extend the existing literature by developing and estimating a structural model that will allow us to uncover the mechanisms behind heterogeneity in adoption, distinguishing between heterogeneity of preferences towards different side effects (risk aversion) and heterogeneity in knowledge or information acquisition (learning). This work is in the vein of Ackerberg (IER 2003), Crawford and Shum (Econometrica, 2005) and Gong (JMP, 2018).This project fits into the project B03, in particular with regard to the theme of consumer protection. The setting we study is one with uncertainty and limited information on the match value between patients and treatments and doctors’ choices may be characterized by rational inattention. In this context, the introduction of funding rules tied to scientific evidence can be interpreted as a way to protect consumers in such an uncertain environment, both for the supply side (the oncologists) and the demand side (the consumers/patients). Our approach will allow us to inform policy makers on the likely impact of actual and potential changes to this type of policies that could be introduced in different contexts. 

 

Data access to French firm-level microdata

Contact person: Harald Fadinger, Volker Nocke and Nicolas Schutz, B03 and B06

Using CRC funds, we have been able to finance access to French firm-level export and balance-sheet data via secure data access (CASD). This has allowed us to obtain information on prices charged and quantities exported by detailed product category for French manufacturing firms in each of their export markets. We use these data in a joint project between projects B3 (Volker Nocke, Nicolas Schutz) and B6 (Harald Fadinger). The research team is completed with Holger Breinlich (U. Surrey). In this project we structurally estimate export behavior in the presence of oligopolistic firms. The data allows us to estimate product-level demand elasticities and to compute firm-product-specific qualities and markups. This allows us to gauge firms’ market power in individual markets. We then use the previous information to estimate gravity models. In particular, we study how trade flows react to trade barriers, such as tariffs, once we take into account that market power (and thus markups) systematically co-vary with them. Obtaining consistent estimates of trade elasticities is highly relevant for correctly assessing welfare gains from trade liberalization and free-trade agreements. Thus, our results will be very relevant for policy makers. Moreover, we can track firms’ markups over time, which enables us to measure changes in market power in European product markets.

 

French firm-level datasets IMPCOMI and MAROTIN

Contact person: Harald Fadinger, B06

Using CRC funds, we have been able to finance access to French firm-level export and balance-sheet data via secure data access (CASD). This has allowed us to obtain information on prices charged and quantities exported by detailed product category for French manufacturing firms in each of their export markets. We use these data in a joint project between projects B3  (Volker Nocke, Nicolas Schutz) and B6 (Harald Fadinger). The research team is completed with Holger Breinlich (U. Surrey). In this project we structurally estimate export behavior in the presence of oligopolistic firms. The data allows us to estimate product-level demand elasticities and to compute firm-product-specific qualities and markups. This allows us to gauge firms’ market power in individual markets. We then use the previous information to estimate gravity models. In particular, we study how trade flows react to trade barriers, such as tariffs, once we take into account that market power (and thus markups) systematically co-vary with them. Obtaining consistent estimates of trade elasticities is highly relevant for correctly assessing welfare gains from trade liberalization and free-trade agreements. Thus, our results will be very relevant for policy makers. Moreover, we can track firms’ markups over time, which enables us to measure changes in market power in European product markets.

 

Monetary Policy and Misallocation

Contact person: Matthias Meier, C02

The CRC project (joint with Timo Reinelt, University of Mannheim) investigates the transmission mechanism of monetary policy. This project proposes a new hypothesis: Tighter monetary policy makes it harder for firms to finance profitable investment projects, which worsens the allocation of physical capital across firms and thereby lowers aggregate productivity. Preliminary evidence suggests this channel is quantitatively important. Fully establishing this channel in the data is relevant for the design and implementation of monetary policy. Thanks to additional CRC funds, we have purchased a rich dataset of secondary market bond transactions, which allows us to investigate the transmission channel in great detail. 

 

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