Lorenzo Caliendo, Yale University

Department seminar. Lorenzo Caliendo is a Professor of Economics at the Yale University School of Management. He will present a paper entitled "Distortions and the Structure of the World Economy" co-authored by Fernando Parro and Aleh Tsyvinski.

Photo of Lorenzo Caliendo.

Lorenzo Caliendo. Photo: Yale University

Abstract

We model the world economy as one system of endogenous input-output relationships subject to distortions and study how the world's input-output structure and world's GDP change due to changes in distortions. We derive a suffcient statistic to identify distortions from the observed world input-output matrix, which we fully match for the year 2011. Our main empirical result is to determine how changes in internal distortions (affecting transactions across sectors within countries) impact the whole structure of the world's economy and show that they have a much larger effect on world's GDP than external distortions (affecting transactions across countries).

Read the full paper here [pdf]

Host: Inga Heiland

Published June 29, 2018 3:24 PM - Last modified Nov. 12, 2018 10:09 AM