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Eduardo Cavallo

Eduardo Cavallo

Adjunct Lecturer

About

Eduardo Cavallo is Principal Economist at the Research Department of the Inter-American Development Bank (IDB) in Washington DC. Prior to joining the IDB, Eduardo was a Vice-President and Senior Latin American Economist for Goldman Sachs in New York. Eduardo had already worked at the IDB as a Research Economist between 2006 and 2010. Before that he served as a research fellow at the Center for International Development (CID), a visiting scholar at the Federal Reserve Bank of Atlanta, and a member of the faculty at the Kennedy School of Government's Summer Program.

Eduardo’s research interests are in the fields of international finance and the economic impacts of natural disasters, with a focus on Latin America and the Caribbean. He has published in several academic journals, and is the co-editor of the books “Building Opportunities for Stronger and Sustainable Postpandemic Growth” (IDB, 2021) “From Structures to Services: the Path to Better Infrastructure in Latin America and the Caribbean” (IDB, 2020); “Building Opportunities for Growth in a Challenging World” (IDB, 2019); “A Mandate to Grow” (IDB, 2018); “Saving for Development: how Latin America and the Caribbean can save more and better” (Palgrave, 2016) and “Dealing with an International Credit Crunch: Policy Responses to Sudden Stops in Latin America” (IDB, 2009).

He holds a Ph.D. in Public Policy and an MPP from Harvard University, and a B.A. in Economics from Universidad de San Andres (UdeSA) in Buenos Aires, Argentina.

Books

1. "Opportunities for Stronger and Sustainable Postpandemic Growth," 2021 Latin American and Caribbean Macroeconomic Report. Eduardo Cavallo and Andrew Powell, Coordinators. Washington, DC: Inter-American Development Bank.

2. "From Structures to Services: The Path to Better Infrastructure in Latin America and the Caribbean," Edited by Eduardo Cavallo, Andrew Powell and Tomás Serebrisky. IDB Flagship Development in the America’s (DIA) Report (2020).

3. "Exiting the Pandemic Tunnel with Growth and Equity: A Strategy for a New Social Compact in Latin America and the Caribbean Covid -19," IDB Monograph, July 2020.Alejandro Izquierdo, Philip Keefer, Allen Blackman, Matías Busso, Eduardo Cavallo, Gregory Elacqua, Ana María Ibañez, Julián Messina, Mauricio Moreira, Carlos Scartascini, Norbert Schady, and Tomás Serebrisky. Washington, DC: Inter-American Development Bank.

4. “Building Opportunities for Growth in a Challenging World,” 2019 Latin American and Caribbean Macroeconomic Report. Eduardo Cavallo and Andrew Powell, Coordinators. Washington, DC: Inter-American Development Bank.

5. "A Mandate to Grow," 2018 Latin American and Caribbean Macroeconomic Report. Eduardo Cavallo and Andrew Powell, Coordinators. Washington, DC: Inter-American Development Bank.

6. “Saving for Development: How Latin America and the Caribbean can Save more and Better,” Edited by Eduardo Cavallo and Tomás Serebrisky. IDB Flagship Development in the America’s (DIA) Report (2016). Palgrave.

7. “Dealing with an International Credit Crunch: Policy Responses to Sudden Stops in Latin America,” Edited by Eduardo Cavallo and Alejandro Izquierdo, 2009. Washington, DC: Inter-American Development Bank.

Peer-Reviewed Journal Articles

1. “The Welfare Gains from Macro-Insurance against Natural Disasters”. Co-authored with Olivier Jeanne and Eduardo Borensztein. Journal of Development Economics, January 2017, Volume 124, pages 142 - 156.

2. “Catastrophic Natural Disasters and Economic Growth”. Co-authored with Sebastián Galiani, Ilan Noy and Juan Pantano. The Review of Economics and Statistics, December 2013, Vol. 95, No. 5, pages 1549-1561.

3. “Estimating the Direct Economic Damages of the Earthquake in Haiti”. Co-authored with Andrew Powell and Oscar Becerra. The Economic Journal, Volume 120, Issue 546, pages F298-F312, 2010.

4. “The Politics of Financial Development: The Role of Interest Groups and Government Capabilities”. Co-authored with Carlos Scartascini and Oscar Becerra. Journal of Banking and Finance, Volume 36, Issue 3, March 2012, pages 626-643.

5. “Does Openness to Trade Make Countries More Vulnerable to Sudden Stops, or Less? Using Gravity to Establish Causality”. Co-authored with Jeffrey A. Frankel. Journal of International Money and Finance, Volume 27, Issue 8, December 2008, Pages 1430-1452. A non-technical summary of this paper is available in the July 2005 NBER digest.

6. “The Role of Relative Price Volatility in the Efficiency of Investment Allocation”. Co-authored with Alejandro Izquierdo, Arturo Galindo and John Jairo Leon. Journal of International Money and Finance, Volume 33 (2013) 1-18.

7. "Debt Sustainability under Catastrophic Risk: The Case of Government Budget Insurance". Co-authored with Eduardo Borensztein and Patricio Valenzuela. Risk Management and Insurance Review, 2009, Vol. 12, No. 2, Pages 273-294.

8. “Openness to Trade and Output Volatility: a Reassessment,” Economía (Journal of LACEA), Volume 9, Number 1, Fall 2008, Pages 105-152.

9. “The Determinants of Corporate Spreads in Emerging Markets: An Option-Adjusted Spreads Analysis”. Co-authored with Patricio Valenzuela. International Journal of Finance and Economics, Vol. 15, Issue 1, January 2010, Pages 59–74.

10. "Why Credit Matters for Productivity," co-authored with Arturo Galindo and Alejandro Izquierdo. In The Age of Productivity: Transforming Economies from the Bottom-Up, Carmen Pagés, Editor, Chap. 6, pp. 123-151. Washington, DC: 2010 IDB Report "Development in the Americas". Palgrave, Macmillan.

11. “Exchange Rate Policy and Liability Dollarization: What Does the Data Reveal About Causality,” Co-authored with Pelin Berkmen. Review of International Economics. Volume 18, Issue 5, November 2010

12. “Are Crises Good for Long Term Growth? The Role of Political Institutions,” Co-authored with Alberto Cavallo. Journal of Macroeconomics, 32 (3), September 2010, Pages 838-857.

13. “Argentina 2002: when the attempt to set the right prices destroyed property rights” Co-authored with Domingo F. Cavallo. Techniques Financières et Développement N°70, mars 2003.

14. “The Aftermath of Natural Disasters: Beyond Destruction,” Co-authored with Ilan Noy. CESifo Forum 2/2010, Pages 25-35.

15. “Natural Disasters and the Economy — A Survey,” Co-authored with Ilan Noy. International Review of Environmental and Resource Economics: Vol. 5: No 1, pp 63-102, 2011.

16. Public Investment in Developing Countries: A Blessing or a Curse? Co-authored with Christian Daude. Journal of Comparative Economics, Volume 39, Issue 1, March 2011.

17. Do Credit Rating Agencies Add Value? Evidence from the Sovereign Rating Business. Co-authored with Andrew Powell and Roberto Rigobon. International Journal of Finance & Economics, 18: 240-265 (2013).

18. Financial Development and TFP Growth: Cross Country and Industry Level Evidence. Co-authored with Francisco Arizala and Arturo Galindo. Applied Financial Economics, Vol 23 (6), pp. 443-448 (2013).

19. Coping with Financial Crises: Latin American Answers to European Questions. Co-authored with Eduardo Fernández-Arias. Revue internationale de politique de développement [En ligne], 4.1, 2013.

20. Foreign Aid in the Aftermath of Large Natural Disasters. Co-authored with Ilan Noy and Oscar Becerra. Review of Development Economics, 18(3), 445-460, 2014.

21. Prices and Supply Disruptions during Natural Disasters. Co-authored with Alberto Cavallo and Roberto Rigobon. Review of Income and Wealth, Volume 60, Issue S2, November 2014, Pages: S449–S471.

22. Is the Euro-zone on the Mend? Latin American Examples to Analyze the Euro Question. Co-authored with Eduardo Fernández-Arias and Andrew Powell. Journal of Banking and Finance, Volume 47, October 2014, Pages 243–257.

23. A New Taxonomy of Sudden Stops: Which Sudden Stops should countries be most concerned about? Co-authored with Andrew Powell, Pilar Tavella and Mathieu Pedemonte. Journal of International Money and Finance, Volume 51 (2015) 47-70.

24. Where is the Money? Post-Disaster Foreign Aid Flows. Co-authored with Oscar Becerra and Ilan Noy. Environment and Development Economics, volume 20 (2015), issue 05, pp.561-586.

25. Precautionary Strategies and Household Saving, Co-authored with with Joshua Aizenman and Ilan Noy. Open Economies Review, November 2015, Volume 26, Issue 5, pp 911-939.

26. What is the relationship between national saving and investment in Latin America and the Caribbean? Co-authored with Mathieu Pedemonte. Economía (Journal of LACEA), volume 16, issue 2, pp29-53, Spring 2016.

27. Is Business Saving Really None of Our Business? Co-authored with Ricardo Bebczuk. Applied Economics, volume 48, issue 24, 2016.

28. Can Countries Rely on Foreign Saving for Investment and Economic Development? Co-authored with Barry Eichengreen and Ugo Panizza. Review of World Economics (Weltwirtschaftliches Archiv), May 2018, Volume 154, Issue 2, pp 277–306.

29. Gone with the Wind: Demographic Transitions and Domestic Saving, co-authored with Gabriel Sánchez and Patricio Valenzuela. Review of Development Economics, November 2018, Volume 22, Issue 4, pp 1744-1764.

30. International Capital Flow Reversals (Sudden Stops). In Oxford Research Encyclopedia of Economics and Finance. Oxford University Press, May 2019. doi: http://dx.doi.org/10.1093/acrefore/9780190625979.013.303

31. Growth-friendly Fiscal Rules? Safeguarding Public Investment from Budget Cuts through Fiscal Rule Design, co-authored with Martín Ardanaz, Alejandro Izquierdo, and Jorge Puig. Journal of International Money and Finance, Volume 111, March 2021.

Expertise

Topics

  • International Economics
  • Latin American Studies