CONTACT

EMAIL: cassey@wsu.edu

CURRICULUM VITAE

 
NEWS & EVENTS

"State Export Promotion and Firm-level Employment" is now available in Public Finance Review.

"Exporting Spatial Externalities" is published in Open Economices Review.

"The Destinations of State Trade Missions" is published in CESifo Economic Studies.

Forthcoming articles in Journal of Food Distribution Research and Journal of Agricultural and Applied Economics.Stay tuned!

Look for upcoming work on export scope and informational barriers to trade, and the localization of U.S. manufacturing.

 

ECONOMICS RESEARCH

SIMULATING CONFIDENCE FOR THE ELLISON-GLAESER INDEX with Ben O. Smith
Published in The Journal of Urban Economics (2014) 81 (1): 95–103.
Program
Expanded tables

Working paper
Abstract:
The Ellison-Glaeser (1997) index is an unbiased statistic of industrial localization. Though the expected value of the index is known, ad hoc thresholds are used to interpret the extent of localization. We improve the interpretation of the index by simulating confidence intervals that a practitioner may use for a statistical test. In the data, we find cases whose index value is above the ad hoc threshold that are not statistically signficant. We find many cases below the ad hoc threshold that are statistically significant. Our simulation program is freely available
and is customizable for specific applications.
Keywords: Ellison-Glaeser, localization, Herfindahl, simulation, confidence interval
JEL classification:
C63, L11, R14

THE LOCATION OF U.S. STATE'S OVERSEAS OFFICES
Published in The Review of International Economics (2014) 22 (2): 310–325.
Working paper
Abstract:
Forty U.S. states operated an overseas office in 2002. Treating overseas offices as sales offices, I modify Holmes (2005) so offices facilitate exports by reducing the transaction cost of selling abroad. From theory, states operate an office if aggregate savings outweigh operating costs. Explointing the differences in where states locate offices in the data, and controlling for aggregate characteristics, I estimate the impact of exports on the probability of an office existing. In addition, I find the average state savings from an office is $92,000 per billion in exports with a cut-off threshold on $1.8 billion.
Keywords:
international trade, exports, states, overseas offices, investment
JEL classification:
F13, H76, L60, 024, R10

THE DESTINATIONS OF STATE TRADE MISSIONS____

Published in CESifo Economic Studies (2016) 62 (3): 547–571.
Working Paper

Online appendix

Abstract:
From 1997–2006, U.S. state governors led more than five hundred trade missions to foreign countries. Trade missions are potentially a form of public investment in export promotion. I create a theory of public investment by introducing government to a Melitz (2003) - Chaney (2007) trade model. Controlling for state and country characteristics, the model predicts a relationship between missions and exports by destination. I create a data set on trade missions and match it with state export data, both with destination information. I estimate this relationship in the data, and reject the hypothesis that missions are to random destinations.
Keywords: international trade, exports, states, missions, investment
JEL classification: F12, F13, H76, L60, 024, R10


STATE EXPORT PROMOTION AND FIRM-LEVEL EMPLOYMENT
Published in Public Finance Review (2017) 45 (4): 538–563.
Abstract:
Most US states have export promotion programs, but it is unknown if these programs create long-term employment, which is often the policy’s stated goal. We merge administrative export promotion and employment data from Washington State to test the effect of firm-level export promotion on firm-level employment using the differences-in-differences estimator. We believe we are the first to have US state data at this level of detail. We find firm participation in an export assistance program increases firm-level employment fleetingly, but not in subsequent periods. Thus, we do not find a statistically significant impact to long-term employment from program participation.
Keywords:
export promotion, employment, administrative data
JEL classification:
C20, F14, H76

EXPORTING SPATIAL EXTERNALITIES with Katherine N. Schmeiser and Andreas Waldkirch
Published in Open Economies Review (2016) 27 (4): 697–720.
Abstract:
Using Spatial econometrics, we estimate the effect of externalities generated by nieghbors' exports on place-level exports, explicitly modeling the distance to those neighbors. We find there is a positive effect of neighbors' exports on exports to the same country but less so for exporting generally. We also find that using a spatial-weights term based on the physical distance between exporters greatly outperforms a dichotomous measure based on exporters in the same region. The results are robust to alternative definitions of the spatial weight.
Keywords: Externalities, Exports, Distance, Spatial econometrics, Russia
JEL classification:
C21, F14, R14

THE AGGLOMERATION OF EXPORTERS BY DESTINATION with Katherine N. Schmeiser
Published in The Annals of Regional Science (2013) 51 (2): 495–513.
Recipient of Springer Award for best paper by early career scholars at the 51st annual meeting of the Western Regional Science Association
Online appendix
Abstract:
Precise characterization of informational trade barriers is neither well documented nor understood. Using Russian customs data, we document that regional destination-specific export spillovers exist for developing countries, extending a result that was only known for developed countries. This result suggests behavior responding to a destination barrier. To account for this fact, we build on a monopolistic competition model of trade by postulating an externality in the international transaction of goods. We test the model's prediction on region-level exports using Russian data and find improvement over gravity-type models without agglomeration. This finding has important development implications in that export policy that considers current trade partners may be more effective than policy that focuses only on the exporting country's industries. Furthermore, our findings can be considered in the burgeoning literature refining transaction costs beyond the traditional iceberg cost.
Keywords: agglomeration, distribution, exports, international trade, location, Russia
JEL classification:
D23, F12, L29

CALIFORNIA'S EXPORTS AND THE 2004 OVERSEAS OFFICE CLOSURES____
Published in Economic Inquiry (2012) 50 (3): 641–651.
Online appendix
Abstract:
Because of an endogeneity problem, estimating the impact of state export promotion programs on
exports is difficult. The 2003 California budget crisis provides a natural experiment, circumventing this problem. Due to the crisis, California closed all 12 overseas offices on January 1, 2004. Applying the differences-in-differences estimator to a sample of 44 countries over eight years yields mixed results. The estimated 2% increase in exports if the offices remained open is not robust. Therefore, any impact of California’s overseas offices on exports is roughly the sizeof the largest random fluctuations.
Keywords:
international trade, exports, promotion, overseas offices, differences-in-differences
JEL classification:
F13, H76, L60, 024

STATE EXPORT DATA: ORIGIN OF MOVEMENT VS. ORIGIN OF PRODUCTION
Online appendix
Published in Journal of Economic and Social Measurement (2009) 34 (4): 241–268.
Abstract:
The Origin of Movement (OM) series is unique data documenting the destination of state exports. Because it is collected at the exit port, a datum indicates the state an export begins its journey, not the production location (OP). Recent OM data have not been examined to determine if they represent OP. Here the collection, dissemination, and limitations of the OM data are described. Diagnostic tests asses how effectively the OM data represent OP. Results indicate the OM data are usable for OP, though there are idiosyncratic subsectors and states, and systematic differences distinguishing the OM data set from OP.
Keywords: international trade, exports, states, origin of movement, origin of production
JEL classification: F14, R12, R14

COMPARING THE ECONOMIC IMPACT OF AN EXPORT SHOCK IN TWO MODELING FRAMEWORKSwith David W. Holland and Abdul Razack _____
Online appendix
Published in Applied Economic Perspectives & Policy (2011) 33 (4): 623–638.
Abstract:
Because of more restrictive assumptions on regional input-output (IO) models comapred to general computable equilibrium (CGE) models, the literature agrees IO results are intuitively consistent with long-run equilibrium but otherwise overestimated. We compare the results of IO and CGE models from an exogenous export shock under various labor market constraints and capital closures. Consistent with the literature, we find the IO results do not match the CGE model's results. But contrary to conventional wisdom, the positive secondary impacts are larger with the CGE model than the IO model. Furthermore, we find the closest match between the direct effects is when the CGE model has short run restrictions.
Keywords: input-ouput, computable general equilibrium, economic impacts, exports
JEL classification: C67, C68, R13, R15

STATE FOREIGN EXPORT PATTERNS
Online appendix
Published in Southern Economic Journal (2012) 78 (2): 308–326.
Working paper: State Export Behavior and Barriers
Abstract:
The pattern of U.S. state exports to foreign destination which states export which goods to
which destinations encompassing all states, destinations, and manufacturing subsectors, has
not been studied despite the high profile role of exports in the public consciousness. Currently
there is not a clear description of facts characterizing state exports in the data. Using research
methods inspired by both firm and country level empirical international trade on a cross section
of state export data obtains a uniform description of seventeen state export behavior stylized
facts that any state trade theory must explain.
Keywords: international trade, exports, states, gravity, geography
JEL classification: F12, F13, R12, R38

MULTILATERAL EXPORT DECOMPOSITIONS with Katherine N. Schmeiser____
Published in Open Economies Review (2013) 24 (5): 901–918.
Abstract:
We analyze exports along five margins to observe the changes of newly exported products, products removed from the export market, and continuously traded products to new, old, and exited destinations on export growth. We find export shares differ between developing and developed countries: 1) entering and exiting products are an important source of export value, but more so for developing than developed countries, 2) that continuously exported products to new destinations are a more important source of export value for developing than developed countries, 3) that though the removal of exiting products has a large impact on export value, the removal of products from one destination that continue to be exported elsewhere results in little loss to total export value, and 4) that larger and richer exporting countries have less opportunity to increase exports from new destinations than smaller and poorer exporting countries. Understanding the change in these margins across different types of countries may be important for formulating trade agreements and targeting of new trade partners.
Keywords: International trade, exports, products
JEL classification: F12, F14, L60

SIX COMPARISIONS OF FIRM-LEVEL AND PRODUCT-LEVEL DATA with Katherine N. Schmeiser
Published in Applied Economics Letters (2013) 20 (4): 382–385.
Abstract:
We compare readily available product-level export data with hard-to-obtain firm-level
export data along six dimensions such as value and the number of destination countries.
We find the product data qualitatively matches the firm-level data, but not quantitively,
particularly on dynamics. This is due to the categorization of products. However,
product data can be used to establish a lower estimate on statistics compared to firm-
level data that may be useful in monopolistic competition models of international trade.
Keywords: international trade, exports, aggregation, products, Russia
JEL classification: F14, L60

AN APPLICATION OF THE RICARDIAN TRADE MODEL WITH TRADE COSTS
Published in Applied Economics Letters (2012) 19 (13): 1227–1230.
Abstract:
Deardorff’s (2004) broad definition of technology in Ricardian trade models is useful for extending the explanatory power of comparative advantage to account for a fact on firm-level exporter clustering unexplained under the standard definition.
Keywords: international trade, Ricardian, technology,
JEL classification: F10, B12


ANALYZING THE EXPORT FLOW FROM TEXAS TO MEXICO
Published in Federal Reserve Bank of Dallas Staff Papers (2010), 11 (October): 1–16.
Abstract:
From 1997 to 2008, Texas shipped 40 percent of its manufacturing exports to Mexico. This puts Texas–Mexico among the largest state–country trading relationships. But this share has been declining recently. A gravity equation cannot account for either of these facts, even though Texas and Mexico share a border. This positive contiguity effect is not unique in state export data. I study the features of the Texas–Mexico relationship to try to account for the size of the export flow and the recent decline in share. Data limitations prevent a full accounting, but the most likely feature is the changing source of maquiladora inputs from the United States to Asia.
Keywords: Texas, Mexico, exports, gravity, border, consolidation, maquiladoras
JEL classification: F14, R11

ECONOMIC IMPACTS OF THE ELIMINATION OF AZINPHOS-METHYL ON THE APPLE INDUSTRY AND WASHINGTON STATE with Suzette Galinto and Justin Taylor
Online appendix
Published in the Journal of Food Distribution Research (2012) 43 (2): 14–35.
Abstract:
The Environmental Protection Agency has declared the organophosphate pesticide azinphos-methyl (AZM) cannot be used in the production of apples after September 30, 2012. We estimate the change to sales, price, and employment to the Washington State apple industry from using the likely AZM alternative had this ban been in effect in 2007. Furthermore, we estimate the effects of this ban as it ripples through the overall Washington State economy. We find the ban will bring a relatively modest change to sales (-0.8%), prices (0.2%), and employment (0.1%) in the apple industry, with negligible impacts on the overall Washington State economy.
Keywords: apples, azinphos-methyl, economic impact, computable general equilibrium
JEL classification: C68, D58, Q18, Q52, R11

 
ECONOMICS TEACHING

THE BIG PICTURE OF ECONOMICS

RATE MY PROFESSORS: unofficial student evaluations
_____University of Minnesota
_____Washington State University

 
COMPUTING

CASSEY.TEX: preamble code, new commands, sample titlepage and table

C_SLIDES.TEX: preamble code, new commands, sample titlepage and table for beamer slides

ECON BST LIBRARY: Library of bib styles (.bst files) for economics journals

 

 

PERSONAL

THE OHIO STATE UNIVERSITY BUCKEYES: 2015 National Champions
_____Ohio State Men's Rugby Football Club: I played wing for a time in college

THE PHILADELPHIA PHILLIES: Ooof!


 
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