Erwan Quintin

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We present a model of economic development where the importance of financial differences caused by limited enforcement can be measured. Economies where enforcement is poor direct less capital to the production sector, and employ less efficient technologies. Calibrated simulations reveal that the resulting effect on output is large. Furthermore, the model(More)
How much of the recent rise in foreclosures can be explained by the large number of nontraditional, low-downpayment mortgage contracts originated between 2003 and 2006? We present a model where heterogeneous households select from a set of possible mortgage contracts and choose whether to default on their payments given realizations of income and housing(More)
We present a model in which the importance of financial intermediation for economic development can be measured. We generate financial differences by varying the degree to which contracts can be enforced. Economies where enforcement is poor direct less capital to the production sector, and employ less efficient technologies. Calibrated simulations reveal(More)
We use data from Argentina’s household survey to evaluate the hypothesis that informal workers would expect higher wages in the formal sector. Using various definitions of informal employment we find that, on average, formal wages are higher than informal wages. Parametric tests suggest that a formal premium remains after controlling for individual and(More)
We estimate a model of foreclosure using a data set that includes every residential mortgage, purchase-and-sale, and foreclosure transaction in Massachusetts from 1989 to 2008. We address the identification issues related to the estimation of the effects of house prices on residential foreclosures. We then use the model to study the dramatic increase in(More)
Measured total factor productivity (TFP) falls markedly in emerging nations that experience financial crises. For instance, during its 1994-95 crises, standard growth accounting suggests that TFP fell by about 10% in Mexico, which is twice as large as any other quarterly TFP drop in Mexico over the past 20 years. A possible explanation for this drop is that(More)
This study documents four key facts about informal economic activities: (1) the size of the informal sector varies greatly across nations; (2) this size is strongly correlated with economic development, the tax burden, and the rule of law; (3) the informal sector emphasizes small-scale, self-financed and unskilled labour intensive economic activities; and(More)
We test the hypothesis that observably similar workers earn higher wages in the formal sector than in the informal sector in developing nations. Using data from Argentina’s household survey and various definitions of informal employment, we find that on average, formal wages are higher than informal wages. Parametric tests suggest that a formal premium(More)