This seminar is part of the "Europe and the Global Economy" series.

The Trans-Atlantic Trade and Investment Partnership (TTIP), if successful, will eliminate trade barriers between the US and the EU, both of which already have free trade agreements with many other countries, including several that are in FTAs with both (Canada, Korea, Mexico to name just a few).  Is TTIP therefore achieving true free trade with this larger group?  No. Restrictive rules of origin apply, and these can potentially interfere with trade and reduce welfare even when compared to a world without any of these FTAs.

Alan V. Deardorff is John W. Sweetland Professor of International Economics and Professor of Economics and Public Policy, University of Michigan.  With a Ph.D. in economics from Cornell University, he has been on the faculty at the University of Michigan since 1970, where he has served as Chair of Economics and now Associate Dean of the Gerald R. Ford School of Public Policy.  His research has included both contributions to the theory of international trade and, with Robert M. Stern, development of the Michigan Model of World Production of Trade, used for analysis of multi-country, multi-sector changes in trade policy.

The process of joining an IO may cause liberalization before membership. Thus studies that only evaluate compliance after membership underestimate the effects. Conditional membership may be one of the most important sources of leverage for IOs.  The rule-makers establish rules that don't go far beyond what they would otherwise do, but rule-takers often must accept a broad range of policy reforms they would not otherwise consider. The influence of accession conditions has been studied in the context of EU and NATO, where sizeable benefits and formal conditions motivate major concessions by applicants. This paper proposes to examine a much less powerful organization, the OECD. Here the qualifications for membership are ambiguous and leave open room for informal pressure for a range of economic reforms. The politics of joining organizations touch closely on concerns about status and legitimacy as well as functional demands for cooperation in complex issue areas. I will examine how OECD membership has motivated specific reforms in regulatory policies and trade in a comparison of the East European transition economies accession with that of Japan, Mexico, and Korea. Statistical analysis of patterns of when countries apply for membership will test for the role of economic and political conditions as well as the political relations among members.

Dr. Connell will give an overview of radiological terrorism, focused on high activity radiation sources in the US and the risk they pose for malevolent use. He has been involved in developing countermeasures to radiological terrorism and will discuss some of the current efforts by the US to reduce this risk. The main thrust of his talk will be about how the risks can be managed.

Dr. Connell is a Senior Scientist with the Systems Analysis Group at Sandia National Laboratories. He is a technical advisor on unconventional nuclear warfare, and radiological/nuclear terrorism to DOE, DHS, and the DOD. He has served as a subject matter expert on a number of Defense Science Board Studies dealing with unconventional nuclear warfare and radiological terrorism. In 2004, Dr. Connell worked with the Defense Threat Reduction Agency to help identify and locate high risk radiation sources in Iraq and also served in Baghdad as a member of the Iraq Survey Group, Nuclear Team. He has published several reports on the risk of radiological terrorism and the vulnerability of cesium chloride irradiators. He was a committee member on the 2008 National Academy of Sciences Committee on Radiation Source Use and Replacement. Prior to working at Sandia National Laboratories, Dr. Connell was a Naval Officer and taught nuclear propulsion theory at the Naval Nuclear Power School in Orlando Florida. He has a B.S. with High Honor in Mechanical Engineering from Michigan Technological University and a Ph.D. in Nuclear Engineering from the University of New Mexico.

Abstract:

The levels of violence in Mexico have dramatically increased in the last few years due to structural changes in the drug trafficking business. The increase in the number of drug trafficking organizations (DTOs) fighting over the control of territory and trafficking routes has resulted in a substantial increase in the rates of homicides and other crimes. This study evaluates the economic costs of drug-related violence. We propose electricity consumption as an indicator of the level of municipal economic activity and use two different empirical strategies to test this. To estimate the marginal effect of violence in the rate of homicides (per 100,000 inhabitants) we use an instrumental variable regression created by Mejía, Castillo and Restrepo (2012). For the average municipality, the marginal negative effect of the increase in homicides rates is substantive for earned income and the proportion of business owners, but not for energy consumption. Although negative and statistically significant, the effects are mild for labor participation. We also employ the methodology of synthetic controls to evaluate the effect that inter-narco wars have on local economies. The analysis indicates that the drug wars in those municipalities that saw dramatic increases in violence between 2006 and 2010 significantly reduced their energy consumption in the years after the change occurred, which is interpreted as a significant reduction in GDP per capita for these municipalities.

Speaker Bio:

Gabriela Calderon holds a Ph.D. in Economics from Stanford University. Her research interests include policies that affect gender differences in developing countries, policy evaluation, violence in Latin America and the effect of institutions and governance on the provision of public goods and health/education outcomes. She did her master's degree in economic theory and bachelor's degree in economics at the Instituto Tecnológico Autónomo de México. Currently, in the Program on Poverty and Governance, her research analyzes the way institutions and democracy affect the provision of public goods, and the impact they have on health outcomes like infant mortality trends. She is also studying the effects of government interventions that combat drug-trafficking organizations over violence in Mexico.

Her research has focused on the topics of development, public finance, and the evaluation of public policy programs in Mexico. For example, during the summers of 2009/2010, she conducted a field experiment in Zacatecas, Mexico with Giacomo de Giorgi, an assistant professor from Stanford University, and Jesse Cuhna, a former Stanford student. The main task was to evaluate the impact of financial literacy classes on underprivileged women entrepreneurs in the region. To successfully complete an evaluation in an untreated region, they proposed collaborating with the Mexican NGO CREA on a joint project. They contacted local interviewers, trained them, and identified all women entrepreneurs in the 17 communities, in which we conducted the experiment. Preliminary results suggest that the female entrepreneurs who were randomly assigned to treatment earned higher profits, had larger revenues, and served a greater number of clients. They also found that they were more likely to implement formal accounting techniques.

She has also studied programs that are not randomly assigned as an experiment. For example, she has analyzed the effects of a national policy in Mexico of child care services, called Estancias Infantiles para apoyar a Madres Trabajadoras (EI), using administrative, census and household data. Her empirical research strategy identifies the effects of the program on both the men and women who were eligible for the program. She used time, location and eligibility variation, and considered a major threat to identification of the actual effects: for example, a manufacturer who moves into a municipality at approximately the same time as the EI program and who happens to disproportionately demand the skills of women who were eligible to the program happened to have. To ensure that such scenarios do not affect her results, she chose not triple difference strategy, in which all ineligible people are treated as “controls” for the EI-eligible families. Instead, she employs Synthetic Control Methods, using the same methodology as Abadie and Gardeazabal (2003) and Abadie, Diamond and Hainmueller (2010) to ensure that her control group has the same mix of skills and preferences as the EI-eligible group. She adapted the Synthetic Control Method to analyze repeated cross-sectional household data, which are data that are typically available in developing countries

The United States commercial nuclear industry started just a few years following the conclusion of the second world war with the start of operation of the Shippingport reactor. Over a relatively short period of time, the industry grew to over one hundred reactors all based fundamentally on the same light water reactor technology that served the naval nuclear program well. Since the start of the industry, the nuclear power research and development community has explored a large number of reactor concepts for a variety of conventional and not so conventional applications. Many of these technologies were demonstrated as both test reactors and prototypical demonstration reactors. Despite the promise of many of these concepts, the commercialization cases for many of these technologies have failed to emerge. In this talk I will discuss the barriers reactor vendors currently face in the United States and the inherent challenges between promoting evolutionary versus revolutionary nuclear technologies. I will then discuss the prospects for the development of advanced commercial reactor technology abroad with an emphasis on the Chinese nuclear program. In particular, I will discuss recent developments in their advanced light water reactor program, high temperature gas reactor demonstration, and thorium molten salt reactor program.

About the speaker: Dr. Edward Blandford is an Assistant Professor of Nuclear Engineering at the University of New Mexico. Before coming to UNM, Blandford was a Stanton nuclear security fellow at the Center for International Security and Cooperation (CISAC) at Stanford University. His research focuses on advanced reactor thermal-fluids, best-estimate code validation, reactor safety, and physical protection strategies for critical nuclear infrastructure. Blandford received his PhD in Nuclear Engineering from the University of California, Berkeley in 2010.