COVID-19 changed consumers’ spending patterns, making the CPI weights suddenly obsolete. In most regions, adjusting the CPI weights to account for the changes in spending patterns increases the estimate of inflation over the early months of the pandemic. Under-weighting of rising food prices and over-weighting of falling transport prices are the main causes of the underestimation of inflation. Updated CPI weights should be developed as soon as is feasible, but flux in spending patterns during the pandemic complicates the development as quickly as 2021 of weights that represent post-pandemic spending patterns.
This paper examines the impact of highway expansion on aggregate productivity growth and
sectoral reallocation between cities in China. To do so, I construct a unique dataset of
bilateral transportation costs between Chinese cities, digitized highway network maps, and
firm-level census. I first derive and estimate a market access measure that summarizes all
direct and indirect impact of trade costs on city productivity. I then construct an instrumental
variable to examine the causal impact of highways on economic outcomes and the underlying
channels. The results suggest that highways promoted aggregate productivity growth by
facilitating firm entry, exit and reallocation. I also find evidence that the national highway
system led to a sectoral reallocation between cities in China.
This paper investigates the effect of timeliness in accessing the intermediate inputs on the
trade pattern. In particular, any country that has a higher ability to transport goods on time
has a comparative advantage in industries that place a higher value on the timely delivery of
their inputs, and this comparative advantage pattern is stronger for processed goods than for
primary goods. To do this, a measure for how intensively any industry demands for the
timely delivery of its intermediate inputs is constructed combining Hummels and Schaur
(2013)’s calculations of the time sensitivity of products with the input-output tables.
In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.
This three-volume study of the Soviet economy presents the detailed information, analysis, and recommendations for the summary report presented to the Group of Seven industrial countries in December 1990. The study was prepared by staff members of the IMF, the World Bank, the OECD, and the EBRD.