Capital reallocation between firms is procyclical and leads to variations in measured aggregate productivity. In this paper, we ask how much of the cyclical variation in measured productivity is the consequence of capital reallocation. We build a heterogeneous-firm model to study the effects of...

This paper studies competing sources of declining dynamism. Evidence shows that an important component of this decline is accounted for by the reduction in the response of employment to shocks in US establishments. Using a plant-level dynamic optimization problem as a framework for analysis,...

This paper studies the interaction of government debt and financial markets. This interaction, termed a "diabolic loop", is driven by government choice to bail out banks and the resulting incentives for banks to hold government debt rather than self-insure through equity buffers. We highlight...

In a number of recent papers Sonis, Hewings and coworkers have extended spacial path analysis to a block structural context capable of analysing the relationship between direct blocks of influence, such as intra and interregional trade coefficients or demographic-economic interactions, and full...

IPTS recently acquired a consumer internet clickstream database containing the full set of annual (2011) clickstream records for about 25.000 internet users in the five largest EU economies (UK, Germany, France, Italy and Spain). It contains time spend on each webpage and socio-economic...