Shocks to capital utilization are introduced in a structural macroeconomic closed-economy model with financial frictions to capture disruptions on the ability of the capital stock to provide capital services used in production. Estimates for the Euro Area and the United States show that these...

In this article, we estimate the role of Political Stability and Absence of Violence and Terrorism-PS in the context of Environmental, Social and Governance-ESG data at world level. We analyse data from 193 countries in the period 2011-2020. We apply Panel Data with Fixed Effects, Panel Data...

Abstract. The stimulus effects of expansionary fiscal policy under average inflationtargeting (AIT) depends on both monetary and fiscal policy regimes. AITfeatures an inflation makeup under the monetary regime, but not under thefiscal regime. In normal times, AIT amplifies the short-run...

We study the effects of international political stability on sovereign defaults and bank-sovereign nexus. We construct a novel index (IPS) that quantifies the course of international relations between 149 countries spanning 1840-2012. We show that countries with higher IPS scores are less likely...

Climate change and the depletion of fossil fuel resources have led to a significant increase in the development of renewable energy technologies. Governments, as opposed to the private sector, should be primarily responsible for investing in renewable energy technology. This argument has broad...