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Eduardo A. Cavallo

Research Economist

Research Department (RES)

Inter-American Development Bank

1300 New York Ave, N.W.

Washington, DC 20577

email: cavalloe@iadb.org

Curriculum Vitae Biography

Published Papers

Does Openness to Trade Make Countries More Vulnerable to External Crises, or Less? Using Gravity to Establish Causality. Coauthored with Jeffrey A. Frankel. Journal of International Money and Finance, Volume 27, Issue 8, December 2008, Pages 1430-1452. Previous versions available through the John F. Kennedy School of Government Working Paper Series, RWP04-038 and NBER Working Paper No. w10957. Final full working paper version IDB WP# 618. Non-technical summary: NBER DIGEST.

Debt Sustainability under Catastrophic Risk: The Case for Government Budget Insurance. Coauthored with Eduardo Borensztein and Patricio Valenzuela. Risk Management and Insurance Review, 2009, Vol. 12, No. 2, 273-294. (*) See disclaimer below. Previous versions available through IDB-Research Department Working Paper #607, and IMF Working Paper #08/44.

Openness to Trade and Output Volatility: a Reassessment. Economía, Volume 9, Number 1, Fall 2008, Pages 105-152. Previous version available through IDB-Research Department Working Paper 604.

The Determinants of Corporate Spreads in Emerging Markets: An Option-Adjusted Spreads Analysis. Coauthored with Patricio Valenzuela. International Journal of Finance and Economics, Vol. 15, Issue 1, January 2010, 59–74. Previous versions available through IDB-Research Department Working Paper 602 and IMF Working Paper 07/228.

Exchange Rate Policy and Liability Dollarization: What Does the Data Reveal About Causality. Coauthored with Pelin Berkmen. Forthcoming: Review of International Economics. Previous versions available through IMF Working Paper 07/33.

Are Crises Good for Long Term Growth? The Role of Political Insitutions. Coauthored with Alberto Cavallo. Forthcoming: Journal of Macroeconomics. Previous versions available through Research Department Working Paper #643.

Argentina 2002: when the attempt to set the right prices destroyed property rights. Coauthored with Domingo F. Cavallo. (September 2002). Techniques Financières et Développement N°70, mars 2003.

Books

"Dealing with an International Credit Crunch: Policy Responses to Sudden Stops," Eduardo Cavallo and Alejandro Izquierdo, 2009. Washington, DC: Inter-American Development Bank. Book presented at the XVIII Ciclo de Jornadas Económicas del Banco de Guatemela. 15 y 16 de Junio de 2009; and the Danish Institute for International Studies (DIIS) and the Ministry of Foreign Affairs of Denmark conference on: Reforming the Bretton Woods Institutions 16-17 September 2009, Copenhagen, Denmark. Non-technical summary available here.

Working Papers

NEW! "The Economics of Natural Disasters -A Survey". Coauthored with Ilan Noy. IDB Working Paper #124.

NEW! "Quid Pro Quo: sudden stops and commitment" Coauthored with Andrés Velasco and Roberto Chang. This is a completely new version of a paper circulated under the same title. The previous paper was presented at the UTDT Summer Camp, Buenos Aires, Argentina, December 2005, the 2006 Annual Meeting of the Latin American Economic Association (LACEA), Mexico City, Mexico (November 2-4, 2006), the IMF's Research Department Seminar (February 2007), and the Meeting on Open Macroeconomics and Development, 2nd Ed. Aix-en-Provence, France (July 2-3, 2007).

NEW! "Financial Development and TFP Growth: Cross Country and Industry Level Evidence." . Coauthored with Francisco Arizala and Arturo Galindo. Research Department Working Paper #682. Paper presented at IDB's Seminar (April 2009).

"Debt Sustainability Fan Charts: Combining Multivariate Regression Analysis and External Forecasts." Draft for Comments. Coauthored with Francisco Arizala, Christian Castro and Andrew Powell.

"Public Investment in Developing Countries: A Blessing or a Curse?" Draft for Comments. Coauthored with Christian Daude. Research Department Working Paper #648. Paper presented at IADB's ECONNET (July 2008), LACEA Annual Meeting, Rio de Janeiro, Brazil (November 2008). and University of Hawaii Economics Department Seminar (May 2009).

"Do Credit Rating Agencies Add Value? Evidence from the Sovereign Rating Business." Draft for Comments. Coauthored with Andrew Powell and Roberto Rigobon. Research Department Working Paper #647. Paper presented at the XXVII Meeting of the Latin American Network of Central Banks and Finance Ministries, Washington DC, May 2008, the 4th Tinbergen Conference, Rotterdam, Netherlands (March 2009) and the 2009 LACEA meeting in Buenos Aires, Argentina (October, 2009).

PhD Dissertation: main chapter

“Trade, Gravity and Sudden Stop: on how commercial trade can increase the stability of capital flows” IDB-Research Department Working Paper #588. Previous version: Federal Reserve Bank of Atlanta Working Paper 2005-23. Paper presented at the 9th Annual Meeting of the Latin American and Caribbean Economic Association (LACEA), San Jose, Costa Rica, (November 4-6, 2004), at the Macroeconomics Seminar of the Federal Reserve Bank of Atlanta (June 13, 2005), and Economics Department Seminars at: University of San Andres (Argentina), University of California at Santa Cruz, Warwick University (UK), University of San Francisco, Wellesley College, Wesleyan University, Catholic University of America, IDB Research Department.

Op-Eds

Promoting Financial Stability. IDEAS Express, IDB, October 2006.

Seguro contra la próxima tormenta. El Financiero de Costa Rica, Lun 26 mar, 2007 - Dom 1 abr, 2007.

A Thought on Private Investment. RGE Global Economic Monitor, Latam Blog. July, 25 2007.

The Cost of Financing. RGE Global Economic Monitor, Latam Blog. August, 7 2007.

Getting Ready for the Next Catastrophe. RGE Global Economic Monitor, Latam Blog. August, 29 2007.

How to Spend $10 billion in Latin America and the Caribbean. RGE Global Economic Monitor, Latam Blog. November 6, 2007.

Public Investment in Developing Countries: Blessing or Curse?. RGE Global Economic Monitor, Latam Blog. July 02, 2008

Do Ratings Matter?. RGE Global Monitor. October 21, 2008.

The Case for Optimism amid the Crisis, RGE Global Monitor, Feb 21, 2009.

Dealing with the crisis: Lessons from Latin America, VoxEU.org, March 29, 2009.

Dealing with an International Credit Crunch: Lessons from Latin America, RGE Global Monitor, April 1, 2009.