Showing 1 - 10 of 28
Building on a micro-founded model of a two region-world economy in the tradition of the new open economy literature, this paper analyses the strategic interaction of large wage-setters and the central bank when switching from a regime of uncoordinated national monetary policies to a monetary...
Persistent link: https://www.econbiz.de/10010515681
Persistent link: https://www.econbiz.de/10011652710
This paper studies the role of the exchange rate regime for trade of new products. It first provides VAR evidence that a rise in external productivity shifts trade away from new products and more so in fixed regimes. Then, it presents a model with firm dynamics in line with this evidence. We...
Persistent link: https://www.econbiz.de/10013199636
This paper examines the role of country-specific sources of output and interest rate or exchange rate volatility in driving FDI activities. Building on a dataset with bilateral FDI flows among 24 OECD economies over the period 1985-2007, we find that nominal and real volatility strongly deter...
Persistent link: https://www.econbiz.de/10013130114
This note studies the synchronization of firm entry and markups in a DSGE model with nominal frictions. Simulations show that the model matches the comovement of markups and entry observed in the data while at the same time reproducing empirically plausible moments for macroeconomic variables. I...
Persistent link: https://www.econbiz.de/10013097303
This paper studies the business cycle implications of entry costs in a dynamic stochastic general equilibrium model with firm entry and nominal rigidity. Simulations show that my baseline model matches the dynamics observed in the data fairly well. Remarkably, it overcomes the difficulties...
Persistent link: https://www.econbiz.de/10013097653
This paper provides a theory of the international business cycle grounded on firms' entry and sticky prices. It shows that under simple monetary rules pro-cyclical entry and counter-cyclical markups can generate fluctuations in macroeconomic aggregates and trade variables as large as those...
Persistent link: https://www.econbiz.de/10013099277
This paper investigates the role of output fluctuations and exchange rate volatility in driving US foreign direct investments. Using a sample of 46 economies over the period 1982-2009, we provide evidence of a positive relation between US FDI and host country's cyclical conditions. Allowing for...
Persistent link: https://www.econbiz.de/10013064980
This paper studies the macroeconomic consequences of alternative policy regimes in a closed economy where a central bank, a fiscal authority and a monopoly union interact via their effects on output and inflation. The analysis compares macroeconomic outcomes in a non-cooperative setting, where...
Persistent link: https://www.econbiz.de/10013156459
Drawing on a tractable DSGE model with nominal rigidity, this paper studies the implications of firms' entry in domestic and foreign markets for the international business cycle. The paper shows that the decision to enter a new market as well as the choice whether to invest at home or abroad...
Persistent link: https://www.econbiz.de/10013156460