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Applied Microeconomics

Applied Microeconomics

The Applied Microeconomics research group unites researchers working on a broad array of topics within such areas as labour economics, economics of education, health economics, family economics, urban economics, environmental economics, and the economics of science and innovation. The group operates in close collaboration with the CAGE Research Centre.

The group participates in the CAGE seminar on Applied Economics, which runs weekly on Tuesdays at 2:15pm. Students and faculty members of the group present their ongoing work in two brown bag seminars, held weekly on Tuesdays and Wednesdays at 1pm. Students, in collaboration with faculty members, also organise a bi-weekly reading group in applied econometrics on Thursdays at 1pm. The group organises numerous events throughout the year, including the Research Away Day and several thematic workshops.

Our activities

Work in Progress seminars

Tuesdays and Wednesdays 1-2pm

Students and faculty members of the group present their work in progress in two brown bag seminars. See below for a detailed scheduled of speakers.

Applied Econometrics reading group

Thursdays (bi-weekly) 1-2pm

Organised by students in collaboration with faculty members. See the Events calendar below for further details

People

Academics

Academics associated with the Applied Microeconomics Group are:


Natalia Zinovyeva

Co-ordinator

Jennifer Smith

Deputy Co-ordinator


Events

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CAGE-AMES Workshop - Alejandra Martinez Cubilios (PGR)

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What affects the survival of trade relationships? Evidence from road disruptions in Colombia

 

With climate change, weather patterns like El Niño Southern Oscillation (ENSO) are becoming more persistent and disruptive. It is crucial to understand how to adapt to extreme weather shocks. This paper investigates how extreme weather events can spread through trade channels, and it is the first one that focuses on the extensive margin of relationships. I use the rain season of La Niña in Colombia during 2010-2011, which caused major road closures that disrupted the transportation of goods. I focus in the Colombian flower sector and its main export market, the US. I find treated relationships exit less after the shock, but within treatment, links from larger and more connected exporters exit more relative to links with small and less-connected exporters. The shock also induced larger exporters to increase their matching after the shock relative to non-affected exporters. The empirical results point out that search frictions are a mechanism at play and the effect on firms varies depending on their size. In this sense, replacing buyers might be more costly to small firms, which explains the lower exit rates observed in the data, but other mechanisms are needed to explain the different responses when considering different network sizes.

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