Discover and read the best of Twitter Threads about #econfriday

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To get a good job or promotion, it helps to have friends in high positions, right?

This might not be the case for high politburo positions in China, as the forthcoming AER by @RFisman, Shi, Wang & Wu shows.

#econfriday
Setting: The Central Politburo is the highest body of China’s government, and its jobs are highly popular. Ergo, the decision process is highly competitive and require more than a top performance in education and prior jobs. So, do friends in high positions help you get the job?
Results: The authors use a large dataset to investigate whether applicants whose peers from their hometown or from college are part of the decision committee have higher chances to get the job. And the surprising answer is NO – peers make you LESS likely to be selected!
Read 7 tweets
Are mobile phones a Liberation Technology?

This week, we read a great new paper (forthcoming Econometrica) by Manacorda & @tesei_andrea who investigate whether mobile phone coverage can be linked to the occurrence protests.

#econfriday
Idea: Protests often occur in response to economic shocks or unpleasant fiscal policies. However, protest organizers need to i) mobilize and ii) coordinate a large enough mass of people for a protest to take place – mobile phones are a huge help with both these tasks.
Why phones? A huge rise in the availability of mobile phone service across the African continent enormously facilitated life: mobile internet and SMS services have become important tools for, e.g., banking, election monitoring, health information, or disaster relief operations.
Read 8 tweets
Are you using the Shift-Share Design?

Today, we read the new @QJEHarvard by Adao, Kolesar & Morales who show us that many Shift-Share Designs produce too small confidence intervals (i.e. many false positives). A must-read for applied economists!

#econfriday
In the Shift-Share Design, we identify a causal effect via two components: An exogenous shock to all observations in our sample (the "Shift") combined with how much an observation is hit by that shock (the "Share").
To compute the "Share", we usually rely on pre-determined characteristics of a unit. For a subnational analysis of the effects of a global price-shock to some good for example, we might compute how much a region produced of this good before the shock.
Read 13 tweets
Does aid increase conflict?

This week on #econfriday: @KaiGehring1, @LennartKap, & @mhl_wong investigate the effect of aid projects on conflict at the subnational level in Africa. Aid doesn't seem to be that bad at all!

Here's the WP: papers.ssrn.com/sol3/papers.cf…
Development aid is thought as one important way to help poor countries. However, prior research raises concern that aid can lead to
civil conflict (@DrNathanNunn & Qian 2014).
There is quite some divide between micro-level & macro-level studies on the relationship between aid & conflict. This paper closes a gap between micro-level country studies and macro-level cross-country studies.
Read 9 tweets

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