Hi! I’m Brian Daza, a Ph.D. candidate in Economics at the University
of Michigan. I focus on questions that sit within the union of
international trade, macroeconomics, and development economics. I use
both structural and empirical tools to study how globalization, domestic
frictions, and government policy interact with economic growth and
distribution.
My research experience includes being a Research Assistant at MIT,
the World Bank’s DIME, and the Research Center of Universidad del
Pacífico. I also worked as a consultant for the Peruvian Government in
the Ministry of Education and the Ministry of Transports and
Communication.
I hold a M.A.Sc in Data, Economics and Development Policy from MIT
and a Bachelor of Economics from Universidad Nacional Mayor de San
Marcos.
Research
Working Papers
“Government Spending Multipliers and Distribution of Commodity Booms
in the Spatial Economy” Latest Version
(February, 2025) | RSIE
Discussion Paper 690Abstract
This paper studies the effects of local government spending and examines
an empirical puzzle: while income, wages, and household expenditure rise
following spending increases,local employment and firm value added do
not. I exploit plausibly exogenous variation in public investment
spending in Peru, where a commodity boom in the 2000s and ex ante
defined natural resource revenue-sharing rules generated resources
windfalls to local governments even to non-extractive provinces. Using
these transfers as an instrument for public investment purchases, I
estimate an open-economy relative local multiplier of 0.376. To explain
the disconnect between rises in wages, expenditures, and income gains,
and no response in local production, I propose a spatial transmission
mechanism: government spending raises local demand, which is met through
trade with other regions rather than only local production. I formalize
this mechanism in a spatial trade model, where local fiscal shocks
propagate through goods market linkages. The model’s equilibrium
conditions map to a Spatial Auto-Regressive (SAR) specification, which I
estimate to quantify indirect effects. The SAR results confirm that
trade spillovers substantially amplify the aggregate effects of local
spending. These findings imply that local multiplier estimates, which do
not incorporate spatial propagation, likely understate the broader
economic impact of fiscal policy.
Selected Work in Progress
“Teenage Labor, Trade, and Market Access” Working Paper Coming Soon - Draft
Available by RequestAbstract
This paper exploits drastic tariff reductions and increased export
possibilities to study their effects on teenage labor, its interaction
with adult labor, and the role that market access plays in that
interaction. In the context of Peru’s last liberalization episode that
took place in the 2000s and the growth of China as the main Peruvian
trade partner, I find that both episodes are associated with higher
teenage labor participation in districts more exposed to them. These
effects seem to be sharper in districts with lower market access, which
is consistent with complementarities between adult labor and teenage
labor in household production activities and contributes to explaining
why child and teenage labor didn’t decrease despite the severe
reductions in poverty rates.