November 2, 2018
GCER Fellow Martin Ravallion to receive a Honorary Doctorate in Economics from the University of Fribourg

Martin Ravallion Honoarary DegreeCongratulations to Martin Ravallion, GCER Fellow and Edmond D. Villani Professor of Economics, for being awarded an honorary doctorate in Economics from the University of Fribourg in Switzerland. Professor Ravallion will receive the honorary degree on November 14, 2018 at the "Measures and Policies for Fighting Poverty" Conference. 

Martin Ravallion currently holds the Inaugural Edmond D. Villani Chair of Economics, at Georgetown University. Martin Ravallion completed his PhD at the London School of Economics in 1981 and worked for the World Bank from 1988 to 2012. He combined his work at the World Bank with consultancy to an important number of governments and with academic research leading to publications in the best scientific journals. From 2007 to 2012, he was director of the development research group (the World Bank’s research department). 

Martin Ravallion has published four books and more than 200 articles in international academic journals and edited volumes. He has more than 60,000 citations and is one of the most prominent economists in the field of development economics and policy. 


September 20, 2018
2018-2019 GCER Distinguished Visitors

The seventh year of the GCER Distinguished Visitor Series features a number of prominent economists who will spend time in the Department of Economics at Georgetown University during the 2018-19 academic year. This year's Distinguished Visitors include:

Aureo de Paula, University College London
Ulrich K. Müller, Princeton University
Ariel Pakes, Harvard University  
Stephen Morris, Princeton University
Fabien Postel-Vinay, University College London

More information can be found by accessing the following link.


August 31, 2018
GCER Fellow Toshihiko Mukoyama analyzes labor regulations in the new GCER Research Profile.

gcer logo In a recent working paper, entitled “Barriers to Reallocation and Economic Growth: the Effects of Firing Costs” (coauthored with Sophie Osotimehin at UQÀM), Georgetown economist and GCER Fellow Toshihiko Mukoyama takes a novel approach to analyzing how firing regulations affect economic growth...

 


August 29, 2018
GCEP Training Course to begin in October.

gcer logoRegistration is now open for the GCEP Training Course to be held on Thursday, October 25th and Friday, October 26, 2018. The two day course, "Identifying and Estimating Dynamic Discrete Choice Models," will be taught by Professor Robert Miller of Carnegie Mellon University. The Georgetown Center for Econometric Practice (GCEP) is an initiative of GCER and the Department of Economics at Georgetown University. Its aim is to contribute to the economic policy debate by promoting the knowledge and practice of econometrics among the DC economic research and policy communities.

For more information on this and other GCEP training courses, click  here


June 12, 2018
GCER Fellow Anna Maria Mayda's Column Published

AMM PhotoGCER Fellow Anna Maria Mayda's article on immigration was recently published by promarket.org. The article discusses Professor Mayda's recent publication, The Political Impact of Immigration: Evidence from the United States which was coauthored with Giovanni Peri, and Walter Steingress

The article can be accessed by clicking here


April 16, 2018
GCER/Cemmap Applied Microeconomics Conference

The Georgetown Center for Economic Research is pleased to announce the Second Annual Applied Microeconomics Conference will be held on May 10-11, 2018. The conference, co-sponsored with the Centre for Microdata Methods and Practice, a joint venture by the Department of Economics University College London and the Institute for Fiscal Studies, will take place at Georgetown University. The conference program can be accessed by clicking here


February 27, 2018
GCER Fellow Bouton's Vox Column on Gun Control Recently Republished.

GCER Fellow Bouton's Vox column on gun control was recently republished by promarket.org. The article can be accessed by clicking here


January 23, 2018
GCER Fellow Bouton awarded Distinguished Associate Professorship.

LBWe congratulate GCER Fellow and GU economist Laurent Bouton for receiving the prestigious designation of Provost's Distinguished Associate Professor at Georgetown University. 

The Distinguished Associate Professorship is awarded each year to faculty members at GU who are "pushing the envelope of knowledge in their field and transmitting their passion for such work to their students."  


January 16, 2018
Featured Research Profile: Winter-Spring 2018 GCER Featured Profile.  

Child Care in Reverse: GCER Fellow Ami Ko explores the subtle effects of informal health care on the long-term care insurance market.

ecAlmost 60 percent of 65 year-olds can expect to spend $100,000 on assisted care for the remainder of their lives. The costs include payments for nursing homes, assisted living facilities, and contractual in-home care. Despite the risk of incurring these substantial costs, fewer than one in ten seniors have long-term care (LTC) insurance. 

In her recent paper, ``An Equilibrium Analysis of the Long-Term Care Insurance Market," Georgetown economist and GCER Fellow Ami Ko studies how informal care --- unpaid help provided by adult children --- can explain the dearth of  LTC insurance.  

Those that need long-term care  often require assistance with basic daily tasks. Because this assistance does not always require professional training, informal care provided by adult children substitutes for market-provided services. In fact, over 60 percent of elderly parents with functional limitations rely on their children for help. 

Because an individual who expects to receive informal care from his/her children may be less willing to purchase LTC insurance, the prevalence of informal care has implications for the insurance market. Yet, insurance companies do not collect information about informal care. As a result, consumers possess significant private information about their risks. This information asymmetry can result in adverse selection where only high-risk consumers who have limited access to informal care purchase insurance. 

Professor Ko finds that adverse selection does occur in the LTC insurance  market. She develops and estimates a structural model of the family where elderly parents and adult children interact  to make  long-term care decisions. Ko then uses the model to demonstrate that the likelihood of receiving informal care from children is a crucial factor in determining an individual's nursing home risks and the individual's willingness to pay for long-term care insurance. Ko finds that there is substantial adverse selection based on this key dimension of private information --- the availability of informal care. In equilibrium, the insurance market suffers from an underinsurance problem in which  high-risk consumers with limited access to informal care drive out low-risk consumers with better access to informal care. 

Using her model, Professor Ko also finds another interesting reason for why many elderly parents do not want LTC insurance; they worry that once they purchase insurance, their children will not help them with long-term care needs. In other words, parents worry that purchasing insurance may result in  family moral hazard, where children reduce their caregiving behaviors in response to their parents' insurance coverage. This family moral hazard effect reduces parents' value for insurance, and this in turn, further depresses the market for LTC insurance. 

Finally, she shows that if insurance companies collected information about consumers' children and priced their contracts based on that information, the equilibrium coverage rate would be much higher. This is because such child demographic-based pricing reduces the information asymmetry, and consequently mitigates the problem of adverse selection. Her findings emphasize the importance of considering substitutes (informal care) for insurance market efficiency.