Journal of International Economics

When are sector-specific price shocks magnified in GE with multiple industries/distorsions? Authors develop a framework with homothetic sectoral preferences and derive a sufficient statistic for the share of the direct effect of the shock that materializes in the aggregate.

New at JIE: "Intersectoral demand linkages: Good shocks, bad outcomes?" by Kristian Behrens, Sergei Kichko, Philip Ushchev

doi.org/10.1016/j.ji...

Agents do not internalize the impact of investment on sovereign bond prices, investment is insufficient, and a subsidy improves welfare. Yet, if the sovereign is impatient, due to political economy factors, it finds private capital accumulation excessive and prefers to tax it.

New at JIE: "Insufficient or excessive investment under sovereign default risk" by Ilhwan Song, Gabriel Mihalache

doi.org/10.1016/j.ji...

Authors study how two significant conflicts between China and the U.S.—the Korean War and the current trade war—affect global supply chains, and find that the death toll from the Korean War in a chairperson’s city of origin influences Chinese firms’ selection of suppliers today.

New at JIE: "Historical military conflict, current trade tensions, and global supply chains" by Yichuan Hu, Chang Li, Shu Lin

doi.org/10.1016/j.ji...

We document and model four key facts: the universality of labor market polarization in cities; a city-size difference in the shock magnitudes; a skew in the types of middle-paid jobs lost; and the role of polarization in the great urban divergence of high vs. low-paid jobs.

New at JIE: "Labor market polarization and the great urban divergence" Donald R. Davis (@columbiauniversity.bsky.social), Eric Mengus, Tomasz Michalski (@tomkmichalski.bsky.social)

doi.org/10.1016/j.ji...

Why do estimates of the classic Protection for Sale model imply that governments mostly maximize social welfare—despite widespread trade protection that hurts welfare? This paper argues that the answer is aggregation bias.

New at JIE: "Protection for sale without aggregation bias" by Jean-Marc Solleder, Fulvio Silvy, Marcelo Olarreaga

doi.org/10.1016/j.ji...

What is the impact of trade fragmentation on inflationary pressures? It depends not only on effect of higher import prices or lower productivity on supply, but also on how demand adjusts to lower real incomes. In turn, this depends on the pace of fragmentation.

New at JIE: "Trade fragmentation, inflationary pressures and monetary policy" by Ludovica Ambrosino, Jenny Chan, Silvana Tenreyro

doi.org/10.1016/j.ji...

New at JIE: "Seizing central bank assets?" by Massimo Ferrari Minesso, Tobias Krahnke, Arnaud Mehl, Isabel Vansteenkiste

doi.org/10.1016/j.ji...

New at JIE: "Services trade and the choice of online versus in-person delivery" by Sarah Oliver

doi.org/10.1016/j.ji...

New at JIE: "Nickell bias in panel local projection: Financial crises are worse than you think" by Ziwei Mei, Liugang Sheng, Zhentao Shi

doi.org/10.1016/j.ji...

This paper measures the impacts of Indonesia’s palm oil export expansion on district poverty and household expenditure from 2002 to 2015.

New at JIE: "Export agriculture and rural poverty: Evidence from Indonesian palm oil" by Ryan B. Edwards

doi.org/10.1016/j.ji...

US-China commercial rivalry is quantified with novel non-parametric sufficient statistics. China's manufacturing seller incidence falls (seller price rises) 8.2\% yearly as its sales share quadruples, 2000-14. US seller incidence rises 6.3\% yearly as US sales share halves.

New at JIE: "Commercial rivalry as seller incidence shifting: Non-parametric accounting of the China shock" by James E. Anderson

doi.org/10.1016/j.ji...

New at JIE: "Playing with blocs: Quantifying decoupling" by Barthélémy Bonadio, Zhen Huo, Elliot Kang, Andrei A. Levchenko, Nitya Pandalai-Nayar, Hiroshi Toma, Petia Topalova

doi.org/10.1016/j.ji...

New research published in the @jintlecon.bsky.social
by Karim Chalak @manchester.ac.uk, @johnmclaren.bsky.social & Xiangjun Ma reveals hidden bias in U.S. trade policy: voters in swing states have far more influence than others

🔗 www.manchester.ac.uk/about/news/m...

#SoSSResearch #PoliticalEconomy

This paper uses detailed firm-product-country-level export data to examine how an anti-dumping action affects a multiproduct firm’s price and quantity decisions across its other products and export destinations.

New at JIE: "Cross-product and cross-market adjustments within multiproduct firms: Evidence from antidumping actions" by Xiaohua Bao, Bruce A. Blonigen, Zhi Yu

doi.org/10.1016/j.ji...

New at JIE: "Foreign direct investment, prices and efficiency: Evidence from India", by Nesma Ali, Joel Stiebale

doi.org/10.1016/j.ji...

This paper integrates daytime and nighttime satellite imagery into a spatial general-equilibrium model to evaluate the returns to investments in new motorways, using publicly available imagery to evaluate India’s road construction projects in the early 2000s.

New at JIE: "Using satellite imagery to measure the impacts of new highways: An application to India" by Kathryn Baragwanath, Gordon H. Hanson, Amit K. Khandelwal (@yaleeconomics.bsky.social), Chen Liu, Hogeun Park

doi.org/10.1016/j.ji...

🎓 Call for Applications | JIE Summer School 2026

📍 Milan (Bocconi University) | 🗓 July 6–8, 2026
Lectures by Cécile Gaubert, Christoph Trebesch, David Hémous, Federica Romei, Christopher Clayton & Natalia Ramondo.

🗓 Deadline: Jan 25, 2026

👉 www.sciencedirect.com/journal/jour...

The JIE welcomes new Co-Editor Ryan Chahrour and Associate Editors Chris Clayton, Özge Akinci, Pierre De Leo, and Wataru Miyamoto!

We are grateful to outgoing Co-Editor Tommaso Monacelli and outgoing Associate Editors Andrea Ferrero and Federica Romei for their service.

We estimate the causal impact of grain price shocks on emerging markets using USDA reports and identification through heteroskedasticity. Effects on default risk, stocks, and exchange rates are real but typically less than half of unadjusted estimates.

New at JIE: "The causal effects of commodity shocks" by Alisson Curatola-Melo, Bernardo Guimaraes

doi.org/10.1016/j.ji...