Business, Government & the International Economy
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- September 2023
- Case
The Globalization of Martini & Rossi, 1863-2023
By: Sophus A. Reinert and Lorena Barale- September 2023
- Case
The Globalization of Martini & Rossi, 1863-2023
By: Sophus A. Reinert and Lorena Barale -
- 2023
- Working Paper
Large Shocks Travel Fast
By: Alberto Cavallo, Francesco Lippi and Ken MiyaharaWe leverage the inflation upswing of 2022 and various granular datasets to identify robust price-setting patterns following a large supply shock. We show that the frequency of price changes increases dramatically after a large shock. We set up a parsimonious New Keynesian model and calibrate it to fit the steady-state data before the shock. The model features a significant component of state-dependent decisions, implying that large cost shocks incite firms to react more swiftly than usual, resulting in a rapid pass-through to prices--large shocks travel fast. Understanding this feature is crucial for interpreting recent inflation dynamics.
- 2023
- Working Paper
Large Shocks Travel Fast
By: Alberto Cavallo, Francesco Lippi and Ken MiyaharaWe leverage the inflation upswing of 2022 and various granular datasets to identify robust price-setting patterns following a large supply shock. We show that the frequency of price changes increases dramatically after a large shock. We set up a parsimonious New Keynesian model and calibrate it to fit the steady-state data before the shock. The...
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- Summer 2023
- Article
(Un)principled Agents: Monitoring Loyalty after the End of the Royal African Company Monopoly
By: Anne Ruderman and Marlous van WaijenburgThe revocation of the Royal African Company's monopoly in 1698 inaugurated a transformation of the transatlantic slave trade. While the RAC’s exit from the slave trade has received scholarly attention, little is known about the company’s response to the loss of its trading privileges. Not only did the end of the company's monopoly increase competition, but the unprecedented numbers of private traders who entered the trade exacerbated the company’s principal-agent problems on the West African coast. To analyze the company’s behavior in the post-monopoly period, we exploit a series of 292 instruction letters that the RAC issued to its slave-ship captains between 1685 and 1706, coding each individual command in the letters. Our database reveals two new insights into the company’s response to its upended competitive landscape. First, the RAC showed a remarkable degree of organizational flexibility, reacting to a heightened principal-agent problem. Second, its response was facilitated by the infrastructure of the transatlantic slave trade, which gave the company a monitoring mechanism by virtue of the slave-ship captains who continually sailed to the West African coast.
- Summer 2023
- Article
(Un)principled Agents: Monitoring Loyalty after the End of the Royal African Company Monopoly
By: Anne Ruderman and Marlous van WaijenburgThe revocation of the Royal African Company's monopoly in 1698 inaugurated a transformation of the transatlantic slave trade. While the RAC’s exit from the slave trade has received scholarly attention, little is known about the company’s response to the loss of its trading privileges. Not only did the end of the company's monopoly increase...
About the Unit
The BGIE Unit conducts research on, and teaches about, the economic, political, social, and legal environment in which business operates. The Unit includes scholars trained in economics, political science, and history; in its work, it draws on perspectives from all three of these disciplines.
The following demonstrates one way of classifying the approaches the Unit takes to learning and teaching.
- The Unit examines the “rules” and policies established by government and other non-business institutions that affect business in the United States.
- The Unit turns to history to understand the origins of today’s business environment as well as some of the alternatives that have emerged from time to time.
- The Unit examines other countries’ business environments and their historical development.
- The BGIE group is deeply interested in the impact of globalization and the way rules are emerging to govern international economic transactions as globalization proceeds.
Recent Publications
IFC Italy Scavenger Hunt
- September 2023 |
- Exercise |
- Faculty Research
The Globalization of Martini & Rossi, 1863-2023
- September 2023 |
- Case |
- Faculty Research
Large Shocks Travel Fast
- 2023 |
- Working Paper |
- Faculty Research
(Un)principled Agents: Monitoring Loyalty after the End of the Royal African Company Monopoly
- Summer 2023 |
- Article |
- Business History Review
The Globalization of Martini & Rossi, 1863-2023
- August 2023 |
- Teaching Note |
- Faculty Research
Italy at a Crossroads
- August 2023 |
- Case |
- Faculty Research
Turning Away From the State: Trade Shocks and Informal Insurance in Brazil
- 2022 |
- Working Paper |
- Faculty Research
Homeward Bound: How Migrants Seek Out Familiar Climates
- 2023 |
- Working Paper |
- Faculty Research
Harvard Business Publishing
Seminars & Conferences
There are no upcoming events.