Tag: Terms-of-Trade Shocks

Teaching Meets Research: The Reserve Buffer Effect Revisited with Panel Local Projections

Teaching sometimes generates new research results. During the Timberlake training, Local Projections for Time-Series and Panel Data Analysis, the students and I revisited the buffer effect documented in…

Do International Reserves Buffer Real-Exchange-Rate Adjustment after Terms-of-Trade Shocks? A Matching Application in Stata

This post illustrates how to use matching methods in Stata to study a reserve-buffer mechanism in international macroeconomics. The application uses kmatch, teffects, and a country-year panel to compare high-…