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Articles 1 - 30 of 272

Full-Text Articles in Macroeconomics

International Reserves And Rollover Risk, Javier Bianchi, Juan Carlos Hatchondo, Leonardo Martinez Jan 2018

International Reserves And Rollover Risk, Javier Bianchi, Juan Carlos Hatchondo, Leonardo Martinez

Leonardo Martinez

No abstract provided.


Why The World Needs A Reserve Asset With A Hard Anchor, Warren Coats, Dongsheng Di, Yuxuan Zhao Dec 2017

Why The World Needs A Reserve Asset With A Hard Anchor, Warren Coats, Dongsheng Di, Yuxuan Zhao

Warren Coats

From the 1970s, the global currency system has two features: the use of one or a few sovereign currencies as the global reserve asset and the floating exchange rate regime between major currencies.This paper points out that the costs of the dollar’s use as an international reserve currency exceed the benefits for both the US and the rest of the world. These costs include the exporting of American manufacturing as a byproduct of its current account deficit needed to supply its currency to the rest of the world. In addition to the detriment to trade from unpredictable exchange ...


Partial Disability And Labor Market Adjustment: The Case Of Spain, José Ignacio Silva, Judit Vall Oct 2017

Partial Disability And Labor Market Adjustment: The Case Of Spain, José Ignacio Silva, Judit Vall

José Ignacio Silva


Although partially disabled individuals in Spain are allowed to combine disability benefits with a job, the empirical evidence shows that the employment rate of this group of individuals is very low because they have a much lower job finding and a higher job separation rates than nondisabled workers. Moreover, a decomposition analysis of the equilibrium employment rate shows that the differences in the job finding rates explain 85 percent of the disabled employment gap. To explain these facts, we construct a labor market model with search intensity and matching frictions to identify the incentives and disincentives to work in Spain ...


Debt Dilution And Sovereign Default Risk, Juan Carlos Hatchondo, Leonardo Martinez, Cesar Sosa Padilla Jan 2016

Debt Dilution And Sovereign Default Risk, Juan Carlos Hatchondo, Leonardo Martinez, Cesar Sosa Padilla

Leonardo Martinez

No abstract provided.


Fiscal Rules And The Sovereign Default Premium, Juan Carlos Hatchondo, Leonardo Martinez, Francisco Roch Jan 2016

Fiscal Rules And The Sovereign Default Premium, Juan Carlos Hatchondo, Leonardo Martinez, Francisco Roch

Leonardo Martinez

No abstract provided.


An Estimated Open-Economy Dsge Model With Search-And-Matching Frictions: The Case Of Hungary, Istvan Konya, Zoltán Jakab Jan 2016

An Estimated Open-Economy Dsge Model With Search-And-Matching Frictions: The Case Of Hungary, Istvan Konya, Zoltán Jakab

Istvan Konya

This paper builds and estimates a mediumscale, small open economy DSGE model augmented with search-and-matching frictions in the labor market, and different wage setting behavior in new and existing jobs. The model is estimated using Hungarian data between 2001-2008. We find that: (i) the inclusion of matching frictions significantly improves the model’s empirical fit; (ii) the extent of new hires wage rigidity is quantitatively important for keymacro variables; (iii) labor market shocks do not play an important role in inflation dynamics, but the structure of the labor market influences the monetary transmission mechanism.


Holes In The Dike: The Global Savings Glut, U.S. House Prices And The Long Shadow Of Banking Deregulation, Mathias Hoffmann, Iryna Stewen Jan 2016

Holes In The Dike: The Global Savings Glut, U.S. House Prices And The Long Shadow Of Banking Deregulation, Mathias Hoffmann, Iryna Stewen

Mathias Hoffmann

We show how capital inflows into and financial deregulation within the United States interacted in driving the recent boom and bust in U.S. housing prices. Interstate banking deregulation during the 1980s cast a long shadow: in states that opened their banking markets to out-of-state banks earlier, house prices were more sensitive to aggregate U.S. capital inflows during 1990-2012. Capital inflows relaxed the value-at-risk constraints of geographically diversified (‘integrated’) U.S. banks more than those of local banks. Therefore, integrated banks absorbed a larger share of capital inflows and expanded mortgage lending more. This drove up housing prices.


Exploring The Transformative Potential Of The E3+3 Joint Comprehensive Plan Of Action With Iran For Improving The Iranian Economy And Its Reintegration Into The Global System, Mohammad Reza Farzanegan Dec 2015

Exploring The Transformative Potential Of The E3+3 Joint Comprehensive Plan Of Action With Iran For Improving The Iranian Economy And Its Reintegration Into The Global System, Mohammad Reza Farzanegan

Prof. Dr. Mohammad Reza Farzanegan

This is background note for my presentation at the Peace Research Institute Frankfurt.


How Does Labour Market Structure Affect The Response Of Economies To Shocks?, Istvan Konya, Aurelijus Dabusinskas, Stephen Millard Nov 2015

How Does Labour Market Structure Affect The Response Of Economies To Shocks?, Istvan Konya, Aurelijus Dabusinskas, Stephen Millard

Istvan Konya

The recent crisis in the Eurozone has led to much discussion about the structure of labour markets in different Eurozone economies. In particular, there has been much talk of the need for structural labour market reform in the Eurozone periphery. But, there are many aspects of labour market structure – eg, wage flexibility, flexibility in hiring and firing, benefits, etc – and it is not clear a priori which aspects really matter. In this paper, we analyse how cross-country differences in labour market characteristics – in particular, wage and employment rigidities – shape the response of different countries to a variety of macroeconomic shocks ...


Lecciones De Economía Para No Economistas, Sergio A. Berumen Aug 2015

Lecciones De Economía Para No Economistas, Sergio A. Berumen

Sergio A. Berumen

Este libro estudia la totalidad de los contenidos de los cursos de Introducción a la Economía y de los primeros cursos de Microeconomía y Macroeconomía de los grados y las licenciaturas en Ciencias Sociales.


Respuestas Exámen, Francisco Carlos Ruiz Diaz Jul 2015

Respuestas Exámen, Francisco Carlos Ruiz Diaz

Francisco Carlos Ruiz Diaz

No abstract provided.


The Intuition Behind Wallace Neutrality, Richard H. Serlin Jul 2015

The Intuition Behind Wallace Neutrality, Richard H. Serlin

Richard H. Serlin

Wallace neutrality is a term that, as far as I know, was coined by University of Michigan economist Miles Kimball. It refers to the seminal model of Neil Wallace in "A Modigliani-Miller Theorem for Open-Market Operations", American Economic Review, June 1981. In Wallace's model, open market operations have no effect on any asset prices, including money (no effect on inflation). This is a shocking result, and it cries out for how and why. Intuitively, how and why can this possibly happen? However, like so many modern models, it's extremely difficult to see the intuition behind the wall of ...


Exchange Rate 'Overshooting': An Empirical Study Of Bangladesh And India, Mohammad Ali Tareq, Fazle Rabbi Jul 2015

Exchange Rate 'Overshooting': An Empirical Study Of Bangladesh And India, Mohammad Ali Tareq, Fazle Rabbi

Fazle Rabbi

Exchange rates are difficult to forecast because the market is continually reacting to unexpected events or news. Even in the absence of any major news, exchange rates adjust through the day as foreign exchange dealers manage their inventories and respond to trades with others who may be better informed. The role of exchange rate changes in eliminating international trade imbalances suggests that we should expect countries with current trade surpluses to have an appreciating currency, whereas countries with trade deficits should have depreciating currencies. Such exchange rate changes would lead to changes in international relative prices that would work to ...


Cruzar El Río Sintiendo Las Piedras. Trece Historias De Éxito, Francisco Carlos Ruiz Diaz Jul 2015

Cruzar El Río Sintiendo Las Piedras. Trece Historias De Éxito, Francisco Carlos Ruiz Diaz

Francisco Carlos Ruiz Diaz

En el periodo 1980-1998 el ingreso por habitante del Paraguay creció a una tasa anual promedio de 1,1%. En esas condiciones, un paraguayo medio debía esperar 65 años para ver sus ingresos duplicarse. Sin embargo, las reformas económicas parciales iniciadas en el año 2003 contribuyeron a que el ingreso por habitante crezca a un promedio anual de 2,8% en el periodo 2003 y 2014, lo que ayudó a recortar el plazo de duplicación del ingreso por habitante a tan solo 25 años ¿Cómo se logra este tipo de resultados? ¿Esas reformas son suficientes para sostener el crecimiento de ...


Small Firms And Domestic Bank Dependence In Europe's Great Recession, Mathias Hoffmann, Bent E. Sorensen Jun 2015

Small Firms And Domestic Bank Dependence In Europe's Great Recession, Mathias Hoffmann, Bent E. Sorensen

Mathias Hoffmann

The paper studies the role of small businesses (SME) in the transmission of the Eurozone crisis to member countries and whether regions or countries with many SMEs were less able to share risk. Our analysis draws attention to domestic bank dependence---defined as the share of domestic private credit originated by domestic banks---as a key variable modulated the impact of shocks on bank-dependent SMEs and thus on the real economy. We argue that Eurozone banking integration in the years after the creation of the single currency was lopsided in the sense that, until 2008, cross-border lending between banks increased markedly while ...


‘By A Silken Thread’: Regional Banking Integration And Pathways To Financial Development In Japan’S Great Recession, Mathias Hoffmann, Toshihiro Okubo Jun 2015

‘By A Silken Thread’: Regional Banking Integration And Pathways To Financial Development In Japan’S Great Recession, Mathias Hoffmann, Toshihiro Okubo

Mathias Hoffmann

Regional differences in banking integration and bank dependence interacted in spreading Japan’s Great Recession after 1990. Nationwide banks were generally more exposed to the crisis than regional ones, but their internal capital markets also substantially dampened the impact of the crisis in prefectures with many bank-dependent small firms. We instrument for modern-day banking inte- gration using the prefecture-level importance of the late-19th-century silk industry: export finance for the silk industry relied on local, cooperative banks. These local banks preserved their comparative advantage in relationship lending to small firms for a century, effectively segmenting regional banking markets during Japan’s ...


Economic Growth And Wage Stagnation In Peru: 1998-2012, Carlos Urrutia, Peter Paz May 2015

Economic Growth And Wage Stagnation In Peru: 1998-2012, Carlos Urrutia, Peter Paz

Carlos Urrutia

In the last two decades, the Peruvian economy exhibited rapid growth. Moreover, the composition of the labor force improved in terms of education and experience, two variables which are typically associated to higher human capital. The average worker in 2012 had a higher level of education and was one and a half years older than in 1998, reflecting the impact of the demographic transition. However, the average real wage was roughly constant. We show that a decline in the wage premium for education, and to a minor extent for experience, is responsible for the lack of growth in the average ...


El Mundo Con Más Dinero, Guillermo Arosemena Jan 2015

El Mundo Con Más Dinero, Guillermo Arosemena

Guillermo Arosemena

No abstract provided.


Long-Run Consumption Risk And Asset Allocation Under Recursive Utility And Rational Inattention, Yulei Luo, Eric R. Young Jan 2015

Long-Run Consumption Risk And Asset Allocation Under Recursive Utility And Rational Inattention, Yulei Luo, Eric R. Young

Yulei Luo

We study the portfolio decision of a household with limited information-processing capacity (rational inattention or RI) in a setting with recursive utility. We find that rational inattention combined with a preference for early resolution of uncertainty could lead to a significant drop in the share of portfolios held in risky assets, even when the departure from standard expected utility with rational expectations is small. In addition, we show that the equilibrium equity premium increases with the degree of inattention because inattentive investors with recursive utility face greater long-run risk and thus require higher compensation in equilibrium. Our results are robust ...


Slow Information Diffusion And The Inertial Behavior Of Durable Consumption, Yulei Luo, Jun Nie, Eric Young Jan 2015

Slow Information Diffusion And The Inertial Behavior Of Durable Consumption, Yulei Luo, Jun Nie, Eric Young

Yulei Luo

This paper studies the aggregate dynamics of durable and nondurable consumption under slow information diffusion (SID) due to noisy observations and learning within the permanent income framework. We show that SID can significantly improve the model's predictions on the joint behavior of income, durable consumption, and nondurable consumption at the aggregate level. Specifically, we find that SID can significantly improve the model's predictions for: (i) smoothness in durable and nondurable consumption, (ii) autocorrelation of durable consumption, and (iii) contemporaneous correlation between durable and nondurable consumption.


Entry Costs And The Dynamics Of Business Formation, Lilia Cavallari Jan 2015

Entry Costs And The Dynamics Of Business Formation, Lilia Cavallari

Lilia Cavallari

No abstract provided.


Exchange Rates As Shock Absorbers: The Role Of Export Margins, Lilia Cavallari Jan 2015

Exchange Rates As Shock Absorbers: The Role Of Export Margins, Lilia Cavallari

Lilia Cavallari

No abstract provided.


Agricultura Ó Industria ¿Un Juego De Suma Cero?, Francisco Carlos Ruiz Diaz Nov 2014

Agricultura Ó Industria ¿Un Juego De Suma Cero?, Francisco Carlos Ruiz Diaz

Francisco Carlos Ruiz Diaz

Se viene escuchando de forma recurrente que el modelo productivo paraguayo, basado en la agricultura mecanizada y la ganadería extensiva, es promotor de desigualdades sociales. Estas afirmaciones por lo general no se sustentan en evidencia concluyente. Otros sectores critican, a su vez, el impacto negativo de la expansión primaria sobre el medio ambiente y la salud de las personas. En este campo la evidencia es más robusta, lo cual deja al desnudo la debilidad de las instituciones del Estado por defender los ecosistemas y la salud de las personas. También se cuestiona el escaso aporte tributario del sector primario. En ...


Implications Of Export Competitiveness And Performance Of Textile And Clothing Sector Of Pakistan: Pre And Post Quota Analysis, Nawaz Ahmad Oct 2014

Implications Of Export Competitiveness And Performance Of Textile And Clothing Sector Of Pakistan: Pre And Post Quota Analysis, Nawaz Ahmad

Nawaz Ahmad

Textile and Clothing sector of Pakistan has been facing different international trade reforms i.e. Multi-fiber Arrangements, Quota elimination and for some of the developing countries European union, introduced special trade arrangements like GSP plus to improve their balance of trade conditions. In the light of pre quota elimination and post quota elimination periods, this paper highlights trade performance of textile and clothing sector in depth. This study focused on finding the extent of revealed comparative advantage of textile and revealed comparative advantage of clothing sector on overall textile and clothing trade performance of Pakistan. For this purpose study applied ...


Government Versus Market Regulation: The Nanny State Or The Liberal State, Warren Coats Aug 2014

Government Versus Market Regulation: The Nanny State Or The Liberal State, Warren Coats

Warren Coats

The nanny state world is characterized by a growing list of regulations and government supervision of business in an effort to fix the most recently observed problems. The price of such protection is the increased cost of doing business, which tends to crowd out small businesses and favor large ones, which can more easily absorb the compliance costs. The benefit is often difficult to detect. Has Dodd-Frank really made it feasible to fail our largest banks (now larger than they were just before the Great Recession), i.e. are they no longer too big to fail?

The self-governing, liberal state ...


Curriculum Vitae, Ronald R. Kumar Jul 2014

Curriculum Vitae, Ronald R. Kumar

Ronald R Kumar

My updated CV


Chapter 1, Ghassan Dibeh Jan 2014

Chapter 1, Ghassan Dibeh

Ghassan Dibeh

No abstract provided.


Chapter 4, Ghassan Dibeh Jan 2014

Chapter 4, Ghassan Dibeh

Ghassan Dibeh

No abstract provided.


Chapter 4-Presentation, Ghassan Dibeh Jan 2014

Chapter 4-Presentation, Ghassan Dibeh

Ghassan Dibeh

No abstract provided.


Chapter 2-Presentation, Ghassan Dibeh Jan 2014

Chapter 2-Presentation, Ghassan Dibeh

Ghassan Dibeh

No abstract provided.