leads to an increase in average income, economic theory is ambiguous about the possible effects on the long-run growth rate …This paper examines the dynamic relationship between trade and income. While most economists agree that increased trade … of the economy. Using a dynamic panel data model, the hypotheses of no long-run effects of trade on income and on income …

aggregate demand shocks. Wage flexibility in response to energy price shocks guarantees workers higher real wages without …

This paper estimates an empirical nonstationary panel regression model that tests long-run consumption risk sharing … risk sharing, which is mainly about risks at business cycle frequency. Since our methodology focuses on identifying … cointegrating relationships while allowing for arbitrary short-run dynamics, we can obtain a consistent estimate of long-run risk …

We analyze how the pass-through from exchange rate to domestic wages depends on the degree of integration between … domestic wages to real exchange rate is 0.1 after a year for countries with high barriers to external labor mobility, but about …

We augment a linearized dynamic stochastic general equilibrium (DSGE) model with a tractable endogenous risk mechanism … their conditional distributions. In particular, the model matches the key stylized facts of growth at risk. Accounting for …

sectors via the destruction of capital stocks and jumps in risk premia. These disruptions often entail negative feedback e … explore this causal nexus and the e?ects of rare large disasters resulting in capital losses and rising risk premia. Our …

explores how much of these large movements reflected shifts in (i) global risk aversion (ii) country-specific risks, directly … in the crisis, the surge in global risk aversion was a significant factor influencing sovereign spreads, while recently … Spain, as the emphasis has shifted towards short-term refinancing risk and long-term fiscal sustainability. The paper …