-quality imports or buy brand-name products, rationally expecting some degree of counterfeiting of the latter. We characterize a … counterfeiting equilibrium and explore its properties. We describe the positive and normative effects of counterfeiting in comparison … with a no-counterfeiting benchmark. Finally, we provide a welfare analysis of border inspection policy and of policy …

constant markups. The differences are important quantitatively; price differences in Hungarian exports between Germany and the …

In this paper we estimate a New-Keynesian DSGE model with heterogeneity in price and wage setting behavior. In a recent … study, Coibion and Gorodnichenko (2011) develop a DSGE model, in which firms follow four different types of price setting … heterogeneity in wage rigidity, such as the persistence in price and the wage inflation, which a standard New Keynesian model with …

How do aggregate wealth-to-income ratios evolve in the long run and why? We address this question using 1970 … able to extend our analysis as far back as 1700. We find in every country a gradual rise of wealth-income ratios in recent … observed in Europe in the eighteenth and nineteenth centuries (600-700%). This can be explained by a long run asset price …

Acemoglu, Johnson, Robinson and Yared (2008) document that the cross-country correlation between income per capita and … democracy disappears once including country fixed effects. This paper tests the hypothesis that the effect of income on … framework provides evidence for significant but heterogeneous effects of income on democracy for former colonies and non …