John T. Dalton

Why Is Polygyny More Prevalent in Western Africa? An African Slave Trade Perspective

Polygyny rates are higher in Western Africa than in Eastern Africa. The African slave trades explain this difference. More male slaves were exported in the trans-Atlantic slave trades from Western Africa, while more female slaves were exported in the Indian Ocean and Red Sea slave trades from Eastern Africa. The slave trades led to prolonged periods of abnormal sex ratios, which impacted the rates of polygyny across Africa. In order to assess these claims, we construct a unique ethnicity-level data set linking current rates of polygyny with historical trade flow data from the African slave trades. Our OLS estimates show a positive correlation between the trans-Atlantic slave trades and polygyny. An IV approach shows the relationship is causal and statistically signicant. We also provide cross-country evidence corroborating our findings.

Dispersion and distortions in the trans-Atlantic slave trade

Market distortions can lead to resource misallocation, which can further lead to inefficiency. Throughout the history of the trans-Atlantic slave trade, qualitative evidence of various sources of distortion abounds. No study, however, has quantified the inefficiency in the slave trade due to these distortions. We use a structural approach to identify the dispersion of distortions in the slave trade from wedges in first order conditions. We then calculate the TFP gains had the dispersion of distortions disappeared. Two main results emerge. First, dispersion of distortions had the smallest damage to TFP in Great Britain, followed by Portugal, and then France. Second, dispersion of distortions in the product market had a bigger impact on TFP than that of the capital and labor markets.

THE EVOLUTION OF TAXES AND HOURS WORKED IN AUSTRIA, 1970–2005

Aggregate hours worked per working-age person decreased in Austria by 25% from 1970 to 2005. During the same time period, taxes increased, particularly the effective marginal tax rate on labor income. Using a standard general equilibrium growth model with taxes, I quantitatively assess the role played by the evolution of taxes on the evolution of hours worked in Austria. The model accounts for 76% of the observed decrease in hours worked per working-age person. My results are in line with other studies, such as Prescott (2002), which find taxes play an important role in explaining aggregate hours worked.

A Theory of Just-in-Time and the Growth in Manufacturing Trade

This paper argues the widespread adoption of Just-in-Time (JIT) logistics provides a key to understanding the growth in the U.S. trade share. To do so, I develop a dynamic trade model based on the choice of the logistics technology used in a firms supply chain. The models predicted trade dynamics depend on how the set of firms using JIT with international suppliers changes over time. A numerical example shows the model is capable of generating growth in the trade share. I present evidence showing the theory is consistent with aggregate data as well as industry-level panel data.

Reputation and learning: Japanese car exports to the United States

This paper incorporates learning and reputation building into a simple dynamic stochastic model with asymmetric information. We use the model to study a bilateral trade flow influenced significantly by learning and reputation, namely U.S. imports of Japanese cars over the period 1961–2004. Numerical simulations replicate the trade flow in a robust fashion. Including the Voluntary Export Restraint in our simulations predicts U.S. imports decreased by 2.46 million cars over the years 1981–1984. Since learning and reputation building require time, predicted short run trade patterns can be quite different than those predicted in the long run. We apply this idea to understand the change in Japanese market share in the U.S. automobile market. We also explore the importance of sectorial differences in the speed of learning and reputation building on predicted trade patterns. Lastly, we examine how the extent of asymmetric information existing between importers and exporters changes under different trade policies.

Firm Taxation and the Endogenous Distribution of Markups

Melitz and Ottaviano (2008) predicts a monotonic relation between productivity and markups. When including revenue taxes, however, this relation is non-monotonic and depends on taxes. Even without taxes, productivity and markups can be non-monotonic depending on how non-homotheticity is modeled.

Dispersion and Distortions in the Trans-Atlantic Slave Trade

Market distortions can lead to resource misallocation, which can further lead to inefficiency. Throughout the history of the trans-Atlantic slave trade, qualitative evidence of various sources of distortion abounds. No study, however, has quantified the inefficiency in the slave trade due to these distortions. We use a structural approach to identify the dispersion of distortions in the slave trade from wedges in first order conditions. We then calculate the TFP gains had the dispersion of distortions disappeared. Two main results emerge. First, dispersion of distortions had the smallest damage to TFP in Great Britain, followed by Portugal, and then France. Second, dispersion of distortions in the product market had a bigger impact on TFP than that of the capital and labor markets.