Dispersion in Borrowing Costs and its Aggregate Implications: Evidence from India (Job Market Paper)
Climate Change and Structural Transformation: A Global Perspectives (with Yueling Huang)
Abstract: We explore how emissions interact with multiple sectors (i.e.: agriculture, manufacturing, services) and study the implications of such interactions for structural transformation, aggregate productivity, and cross-country differences. We document three facts. First, agriculture and manufacturing have higher emissions relative to their sectoral shares than services. Second, the effect on agriculture is negative (positive) in hot (cold) countries, but insignificant in non-agriculture. Third, emissions per capita decrease with agriculture share, but increase with services share. We quantify a multi-sector model of structural transformation with three novel ingredients: energy production sectors, the carbon cycle, and two-way interaction between emissions and sectoral economic activities. Our model highlights that emissions hinder the reallocation from less productive agriculture to more productive manufacturing and services, thereby lowering aggregate productivity. The model with emissions yields approximately 18% higher cross-country productivity differences, compared to the standard model without emissions.
Transformation in the Retail Sector: Demand vs. Supply Factors