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environment that captures the effects of interregional and intersectoral trade in propagating disaggregated productivity changes … pairwise interregional trade across all 50 U.S. states, 26 traded and non-traded industries, labor as a mobile factor, and … matches the U.S. input-output matrix. Using data on trade flows by industry between states, as well as other regional and …
Persistent link: https://www.econbiz.de/10011083376
A large econometric literature has found that post-war US inflation exhibits very high persistence, approaching that of a random walk process. Given similar evidence for other OECD countries, many macroeconomists have concluded that high inflation persistence is a 'stylized fact'. The objective...
Persistent link: https://www.econbiz.de/10005136541
This Paper studies the behaviour of inflation after nine large post-1990 contractionary devaluations. A salient feature of the data is that inflation is low relative to the rate of devaluation. We argue that distribution costs and substitution away from imports to lower quality local goods can...
Persistent link: https://www.econbiz.de/10005123785
Countries that have pursued distortionary macroeconomic policies, including high inflation, large budget deficits and misaligned exchange rates, appear to have suffered more macroeconomic volatility and also grown more slowly during the postwar period. Does this reflect the causal effect of...
Persistent link: https://www.econbiz.de/10005136626
In our recent Economic Policy article (Honohan and Lane, 2003), we argued that the strength of the US dollar 1999-2001 had an important impact on inflation divergence within the EMU and in particular the surge in Ireland’s inflation to over 7%. This hypothesis has been subjected to a grueling...
Persistent link: https://www.econbiz.de/10005789034
This paper studies the evolution of monetary policy targets over the course of the past 200 years. We argue that policy targets are set as part of an assignment procedure that is intended to address both time consistency and monitoring problems. As a result, central banks, after having been...
Persistent link: https://www.econbiz.de/10005661799
We study the relationship between geography and growth. To do so, we first develop a dynamic spatial growth theory with realistic geography. We characterize the model and its balanced growth path and propose a methodology to analyze equilibria with different levels of migration frictions. We...
Persistent link: https://www.econbiz.de/10011252617
This paper examines the importance of buyer-supplier relationships, geography and the structure of the production network in firm performance. We develop a simple model where firms can outsource tasks and search for suppliers in different locations. Low search and outsourcing costs lead firms to...
Persistent link: https://www.econbiz.de/10011262884
) bilateral trade openness reduces bilateral cultural distance; (ii) the more differentiated the products, the more trade reduces … cultural distance; (iii) trade openness has a lock-in effect on culture. Third, we test the model using an instrumental … bilateral trade openness translates into a 43% standard deviation decrease in bilateral cultural distance. …
Persistent link: https://www.econbiz.de/10005082538
the period 1975-2005. In particular, it tests a) whether increases in trade lead to rising inequalities, b) whether these … inequalities recede in time, and c) whether increases in global trade affect the developed and developing worlds differently. Using … static and dynamic panel data analysis, it is found that while increases in trade per se do not lead to greater territorial …
Persistent link: https://www.econbiz.de/10009367423