I am a M-DPhil Candidate at the University of Oxford supervised by Professor Ian Crawford. My research interests include welfare, public, and behavioural economics.
I am also a Research Fellow at The Behavioural Insights Team.
You can reach me at hubert.wu@nuffield.ox.ac.uk.
International Comparisons: Multilateral Indices and Nonparametric Welfare Bounds
[Paper] [Slides]
Abstract: Multilateral index numbers, such as those used to make international comparisons of prices and income, are fundamental objects in economics. However, these numbers are often challenging to interpret in terms of economic welfare as a data-dependent ‘taste bias’ can arise for these indices that distorts measurement of price and income levels and dispersion. To study this problem, I develop a means to appraise indices’ economic interpretability using non-parametric bounds on a true cost-of-living index. These bounds improve upon their classical counterparts, define a new class of indices, and can correct existing indices for preference misspecification. In my main application I apprise existing international comparison methods. I find that taste bias generally leads to overestimates (underestimates) of price (income) levels. Superlative indices, such as the Fisher-GEKS index, lie within the permitted bounds more frequently than non-superlative methods, but the mean size of this bias is modest in all examined cases. My results can thus be interpreted as supporting the economic validity of the myriad multilateral methods which are in practical use.
The Behavioural Economy: A 10 point plan to upgrade economic policy (with Nida Broughton, Lis Costa, David Halpern, Johannes Lohmann, Richard O’Brien, Pantelis Solomon, Stefanie Schultheis, and Natalia Shakhina), 2020 [Paper]
Trust mechanisms and online platforms: A regulatory response (with Mitch Watt), 2018 [Paper]
Harvard Mossavar-Rahmani Center for Business and Governance Associate Working Paper Series No. 97
Dream Hoarders Down Under: A Review and Comparison (with Nicholas Biddle), 2018 [Paper (gated)]
Economic Record, 94 (307), 502-505.