Abstract

This paper examines the effectiveness of monetary policy transmission mechanisms in 15 emerging market economies from 2010-2024. Using a comprehensive dataset of central bank policy decisions, financial market indicators, and macroeconomic outcomes, we investigate how policy rate changes propagate through financial systems to affect real economic variables. We find significant heterogeneity in interest rate pass-through, with financial market development and institutional quality serving as key determinants of transmission efficiency. Our results have important implications for central bank communication strategies and the design of monetary policy frameworks in developing economies.

Key Findings

Methodology

We employ a panel VAR approach with quarterly data spanning 2010-2024. Our identification strategy exploits exogenous variation in global financial conditions to isolate domestic policy effects. The model incorporates:

• Policy rate changes and their timing
• Banking sector concentration measures
• Financial market depth indicators
• Institutional quality metrics
• External financial conditions (VIX, US Fed rates)

Policy Implications

Our findings suggest several key recommendations for emerging market central banks:

Abstract

This paper examines the effectiveness of monetary policy transmission mechanisms in 15 emerging market economies from 2010-2024. Using a comprehensive dataset of central bank policy decisions, financial market indicators, and macroeconomic outcomes, we investigate how policy rate changes propagate through financial systems to affect real economic variables. We find significant heterogeneity in interest rate pass-through, with financial market development and institutional quality serving as key determinants of transmission efficiency. Our results have important implications for central bank communication strategies and the design of monetary policy frameworks in developing economies.

Key Findings

Abstract

This research applies game-theoretic frameworks to analyze competition between digital platforms, focusing on strategies around network effects, switching costs, and multi-homing behavior. We develop a dynamic model that captures the strategic interactions between platforms competing for users and complementors. Our analysis reveals that first-mover advantages are often overestimated when multi-homing is feasible, and that quality differentiation can prevent market tipping even with strong network effects. The model provides insights for both platform strategy and competition policy.

Key Contributions

Abstract

The democratization of financial markets through commission-free trading platforms has fundamentally altered market microstructure. This paper analyzes retail trading patterns on Robinhood during periods of heightened volatility, identifying systematic behavioral biases that affect price formation and market stability. Using a unique dataset of anonymized trading flows from 2020-2024, we document strong evidence of herding behavior, with retail investors disproportionately buying stocks with recent extreme returns. Our findings suggest that gamification features correlate with increased trading frequency but decreased portfolio performance, raising important questions about investor protection and market efficiency.

Research Highlights

Abstract

This paper provides a comprehensive comparison of carbon pricing mechanisms, analyzing the economic efficiency, distributional impacts, and political economy considerations of carbon taxes versus cap-and-trade systems across multiple jurisdictions. We develop a general equilibrium model that incorporates uncertainty, technological innovation, and international trade. Our analysis of carbon pricing implementations in the EU, British Columbia, and California reveals that hybrid approaches combining elements of both systems may optimize the tradeoff between certainty and flexibility. Revenue recycling mechanisms prove crucial for political sustainability and distributional equity.

Policy Impact

Abstract

The COVID-19 pandemic catalyzed the largest labor market experiment in modern history. This collaborative research examines the persistence of remote work arrangements and their implications for productivity, wages, and geographic economic distribution. Our analysis reveals that remote work productivity varies significantly by occupation and individual characteristics. Knowledge workers show productivity gains of 5-9%, while collaborative creative work suffers modest declines. The geographic redistribution of high-wage workers from urban centers to suburban and rural areas has profound implications for local public finance, housing markets, and agglomeration economies.

Key Findings

Abstract

This paper investigates the factors driving cryptocurrency adoption across 50 countries, with particular focus on the role of network effects, regulatory clarity, and traditional financial system development. Using novel data on wallet addresses and transaction volumes, we quantify direct and indirect network effects in cryptocurrency markets. Our results suggest that indirect network effects through merchant adoption and DeFi applications are becoming increasingly important relative to direct peer-to-peer effects. We find that regulatory uncertainty, rather than restrictive regulation, serves as the primary impediment to adoption, with countries having clear frameworks showing 3x higher adoption rates.

Research Impact