WORK IN PROGRESS

Measuring the gains of the participation of compatible pairs in a Kidney Exchange Program (with Antonio Nicolò and Radu Stefan Mincu)

How do health shocks impact individual preferences? Evidence from Employment Decision

Abstract: It has been shown that health shocks and health deterioration lead to changes in various socio-economic aspects of life. However, the impact of health shocks on individual values and preferences has not been widely examined. In this paper we focus on the importance and relevance of exploring this relationship. We propose the following research question: How do health shocks affect individual preferences?We express individual preferences and their changes as variation in time discounting. Evidence of the effect of an acute health shock is drawn from employment decision of individuals before and after the shock. We employ the life cycle consumption and labor supply model to explore its predictions and compare these with the data from Britain. The theory suggests that changes in time discounting alter the slope of the optimal consumption and labor/leisure allocation paths. To quantify the impact of an acute health shock, we would use the Simulated Method of Moments to estimate parameters of interest. An event study utilizing BHPS and UKHLS data reveals that the onset of an acute health shock reduces weekly work hours for both men and women, decreases annual income, and lowers labor participation rates. These trends gradually reverse, with employment levels returning to pre-shock levels within three years and annual income for men nearly doubling four years post-shock.

What are the Limits to Private Certification? Evidence from an Attempt to Protect Intact Forests (with Kenneth Houngbedji, Johanna Joy Isman, and Liam Wren-Lewis)

Abstract: Voluntary certification schemes encourage companies to adopt production technologies that benefit society positively. However, whether these schemes can motivate companies to reduce negative externalities by restricting production volume is uncertain. Specifically, we study the impact of modifications made to the FSC standard that required the preservation of a minimum of 80% of so far undisturbed, intact forest landscapes (IFL) within certified forests. We analyse the effects on certification decisions and the conservation of IFL.To examine those, we link geographic information on forest concessions with remote sensing of the forest area, details about FSC certification, and audits in countries characterised by substantial areas of IFL. We use a difference-in-differences framework. Our findings reveal that in Russia, after the modification in the FSC standard, concessions with IFL were less inclined to get or remain FSC-certified compared to those lacking IFL. Additionally, we find indications that the change contributed to the conservation of IFL. However, the drivers behind these improvements remain elusive, as our study does not uncover reductions in tree cover loss within the IFL.