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Oil Discoveries and Protectionism: Role of News Effects (2021)
Journal Article
Perez Sebastian, F., Raveh, O., & van der Ploeg, F. (in press). Oil Discoveries and Protectionism: Role of News Effects. Journal of Environmental Economics and Management, https://doi.org/10.1016/j.jeem.2021.102425

Can oil discovery shocks affect the demand for protectionism? An intertemporal model of Dutch disease indicates that if the tradable sector is politically dominant then an oil discovery can induce protectionism. If the economy is also credit constrai... Read More about Oil Discoveries and Protectionism: Role of News Effects.

Capital-skill complementarity and biased technical change across US sectors (2020)
Journal Article
Perez-Laborda, A., & Perez-Sebastian, F. (2020). Capital-skill complementarity and biased technical change across US sectors. Journal of Macroeconomics, 66, https://doi.org/10.1016/j.jmacro.2020.103255

The goal of this paper is two-fold. First, we reexamine the evidence for the capital-skill complementarity (CSC) and the skill-biased technological change (SBTC) hypotheses at the sectoral level in the US economy for the period 1970-2005. Second, we... Read More about Capital-skill complementarity and biased technical change across US sectors.

The role of ethnic characteristics in the effect of income shocks on African conflict (2020)
Journal Article
Manotas-Hidalgo, B., Pérez-Sebastián, F., & Campo-Bescós, M. A. (2021). The role of ethnic characteristics in the effect of income shocks on African conflict. World Development, 137, https://doi.org/10.1016/j.worlddev.2020.105153

This paper disentangles the ethnic drivers of the effect of food-related income shocks on African conflict employing geolocalized information. We consider diversity and political ethnic variables and several conflict definitions. We find that differe... Read More about The role of ethnic characteristics in the effect of income shocks on African conflict.

Federal tax policies, congressional voting, and natural resources (2019)
Journal Article
Perez-Sebastian, F., & Raveh, O. (2019). Federal tax policies, congressional voting, and natural resources. Canadian Journal of Economics / Revue Canadienne d'Économique, 52(3), 1112-1164. https://doi.org/10.1111/caje.12404

Can abundance of natural resources affect legislators' voting behavior over federal tax policies? We construct a political economy model of a federalized economy with district heterogeneity in natural resource abundance. The model shows that represen... Read More about Federal tax policies, congressional voting, and natural resources.

Heterogeneous vertical tax externalities and macroeconomic effects of federal tax changes: the role of fiscal advantage (2019)
Journal Article
Perez Sebastian, F., Raveh, O., & Reingewertz, Y. (2019). Heterogeneous vertical tax externalities and macroeconomic effects of federal tax changes: the role of fiscal advantage. Journal of urban economics, 112, 85-110. https://doi.org/10.1016/j.jue.2019.06.003

How do state tax rates respond to federal tax shocks? This paper presents a novel mechanism of heterogeneous vertical tax externalities across state-levels of fiscal advantage, showing that tax increases can be expansionary even without their reinves... Read More about Heterogeneous vertical tax externalities and macroeconomic effects of federal tax changes: the role of fiscal advantage.

What drives vertical fiscal interactions? Evidence from the 1980 Crude Oil Windfall Act (2018)
Journal Article
Perez-Sebastian, F., & Raveh, O. (2018). What drives vertical fiscal interactions? Evidence from the 1980 Crude Oil Windfall Act. Regional Science and Urban Economics, 73, 251-268. doi:10.1016/j.regsciurbeco.2018.10.004

In economies with multi-level governments, why would a change in the fiscal rule of a government in one level lead to a fiscal response by a government in a different level? The literature focused primarily on the standard common-pool problem, while... Read More about What drives vertical fiscal interactions? Evidence from the 1980 Crude Oil Windfall Act.

The public and private marginal product of capital (2018)
Journal Article
Lowe, M., Papageorgiou, C., & Perez Sebastian, F. (2019). The public and private marginal product of capital. Economica, 86(342), 336-361. doi:10.1111/ecca.12268

Why doesn't capital flow to developing countries as predicted by the neoclassical model? What are the direction and degree of capital misallocation across nations? We revisit these questions by removing public capital from total capital to achieve a... Read More about The public and private marginal product of capital.

Natural resources, decentralization, and risk sharing: can resource booms unify nations? (2016)
Journal Article
Pérez-Sebastián, F., & Raveh, O. (2016). Natural resources, decentralization, and risk sharing: can resource booms unify nations?. Journal of Development Economics, 121, 38-55. https://doi.org/10.1016/j.jdeveco.2016.02.003

Previous studies imply that a positive regional fiscal shock, such as a resource boom, strengthens the desire for separation. In this paper we present a new and opposite perspective. We construct a model of endogenous fiscal decentralization that bui... Read More about Natural resources, decentralization, and risk sharing: can resource booms unify nations?.

The natural resource curse and fiscal decentralization (2015)
Journal Article
Pérez-Sebastián, F., & Raveh, O. (2016). The natural resource curse and fiscal decentralization. American journal of agricultural economics, 98(1), 212-230. https://doi.org/10.1093/ajae/aav051

© 2015 The Author. Natural resource abundance is a blessing for some countries, but a curse for others. We show that differences across countries in the degree of fiscal decentralization can contribute to this divergent outcome. Using a large panel o... Read More about The natural resource curse and fiscal decentralization.

Convergence in a dynamic Heckscher–Ohlin model with land (2015)
Journal Article
Guilló, M. D., & Pérez-Sebastián, F. (2015). Convergence in a dynamic Heckscher–Ohlin model with land. Review of development economics, 19(3), 725-734. https://doi.org/10.1111/rode.12158

Convergence among nations that share the same preferences and technologies is a key result of the closed-economy neoclassical growth framework that has received substantial support in the data. However, Heckscher–Ohlin versions of the two-sector neoc... Read More about Convergence in a dynamic Heckscher–Ohlin model with land.

Neoclassical growth and the natural resource curse puzzle (2015)
Journal Article
Guilló, M. D., & Pérez-Sebastián, F. (2015). Neoclassical growth and the natural resource curse puzzle. Journal of international economics, 97(2), (423-435). doi:10.1016/j.jinteco.2015.06.002. ISSN 0022-1996

We advance a novel mechanism that helps to explain the puzzling evidence on the natural resource curse. The new channel arises in a standard dynamic Heckscher-Ohlin model composed of small-open economies that take international output prices as given... Read More about Neoclassical growth and the natural resource curse puzzle.

Market failure, government inefficiency, and optimal R&D policy (2015)
Journal Article
Perez-Sebastian, F. (2015). Market failure, government inefficiency, and optimal R&D policy. Economics letters, 128, (43-47). doi:10.1016/j.econlet.2015.01.012. ISSN 0165-1765

This paper presents a growth model that can explain the coexistence of intellectual property rights and R&D subsidies as a response to the presence of both market and government failures. The framework can also generate the observed positive correlat... Read More about Market failure, government inefficiency, and optimal R&D policy.

Health cycles and health transitions (2014)
Journal Article
Chakraborty, S., Papageorgiou, C., & Perez Sebastian, F. (2016). Health cycles and health transitions. Macroeconomic dynamics, 20(1), 189-213. https://doi.org/10.1017/S1365100514000297

We study the dynamics of poverty and health in a model of endogenous growth and rational health behavior. Population health depends on the prevalence of infectious diseases that can be avoided through costly prevention. The incentive to do so comes f... Read More about Health cycles and health transitions.

A unified theory of structural change (2011)
Journal Article
Dolores Guilló, M., Papageorgiou, C., & Pérez-Sebastián, F. (2011). A unified theory of structural change. Journal of Economic Dynamics and Control, 35(9), 1393-1404. doi:10.1016/j.jedc.2011.05.004

This paper uses dynamic general equilibrium and computational methods, inspired by the multi-sector growth model structure in Stephen Turnovsky's work, to develop a theory that unifies two of the traditional explanations of structural change: sector-... Read More about A unified theory of structural change.

Diseases, infection dynamics, and development (2010)
Journal Article
Chakraborty, S., Papageorgiou, C., & Pérez Sebastián, F. (2010). Diseases, infection dynamics, and development. Journal of Monetary Economics, 57(7), (859-872). doi:10.1016/j.jmoneco.2010.08.004. ISSN 0304-3932

The relationship between health and development is a subject of ongoing debate. This paper contributes to the debate by proposing a general equilibrium theory of infectious disease transmission, prevention investment, and rational behavior. Diseases... Read More about Diseases, infection dynamics, and development.

Sovereign risk, FDI spillovers, and growth (2008)
Journal Article
Sebastián, F. P., Maliar, L., & Maliar, S. (2008). Sovereign risk, FDI spillovers, and growth. Review of International Economics, 16(3), 463-477. doi:10.1111/j.1467-9396.2007.00718.x

This paper studies the effect of sovereign risk on capital flows from rich to poor nations in the context of a two-country model, where Foreign Direct Investment (FDI) creates positive externalities in domestic production. We show that if externaliti... Read More about Sovereign risk, FDI spillovers, and growth.

Patents, R&D and lag effects: evidence from flexible methods for count panel data on manufacturing firms (2008)
Journal Article
Gurmu, S., & Pérez-Sebastián, F. (2008). Patents, R&D and lag effects: evidence from flexible methods for count panel data on manufacturing firms. Empirical economics, 35(3), (507-526). doi:10.1007/s00181-007-0176-8. ISSN 0377-7332

This paper investigates the relationship between patents and research and development expenditures using new longitudinal patent data at the firm level for the U.S. manufacturing sector from 1982 to 1992. The paper also develops a new class of count... Read More about Patents, R&D and lag effects: evidence from flexible methods for count panel data on manufacturing firms.

Public support to innovation and imitation in a non-scale growth model (2007)
Journal Article
Perez-Sebastian, F. (2007). Public support to innovation and imitation in a non-scale growth model. Journal of Economic Dynamics and Control, 31(12), 3791-3821. https://doi.org/10.1016/j.jedc.2006.12.011

This paper studies technology policy within a version of Jones's [1995. R&D-based models of economic growth. Journal of Political Economy 103, 759-784] non-scale R&D-based growth framework that incorporates imitation of foreign techniques. In the mod... Read More about Public support to innovation and imitation in a non-scale growth model.

Is the asymptotic speed of convergence a good proxy for the transitional growth path? (2007)
Journal Article
Papageorgiou, C., & Perez-Sebastian, F. (2007). Is the asymptotic speed of convergence a good proxy for the transitional growth path?. Journal of Money, Credit and Banking, 39(1), 1-24. https://doi.org/10.1111/j.0022-2879.2007.00001.x

This paper compares transitional dynamics in two alternative R&D non-scale growth models, one with endogenous human capital and the other without. We show that focusing only on the asymptotic speed of convergence to discriminate between the two model... Read More about Is the asymptotic speed of convergence a good proxy for the transitional growth path?.

The curse and blessing of fixed specific factors in small-open economies (2006)
Journal Article
Guilló, M. D., & Perez-Sebastian, F. (2007). The curse and blessing of fixed specific factors in small-open economies. Journal of Development Economics, 82(1), 58-78. https://doi.org/10.1016/j.jdeveco.2005.11.002

This paper investigates how a country's specific-factor endowment affects its long-run economic performance. We build an open-economy version of the two-sector neoclassical growth model in which we introduce fixed industry-specific inputs in both act... Read More about The curse and blessing of fixed specific factors in small-open economies.