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Countries with more developed financial markets (as measured by the private debt-to-GDP ratio) tend to have significantly lower aggregate volatility. This relationship is also highly non-linear starting from a low level of financial development the reduction in aggregate volatility by financial...
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Empirical studies showed that firm-level volatility has been increasing but the aggregate volatility has been decreasing in the US for the post-war period. This paper proposes a unified explanation for these diverging trends. Our explanation is based on a story of financial development -...
Persistent link: https://www.econbiz.de/10014208300
In order to assess transmission mechanisms between global and domestic house prices, and possibly contagion effects, we use a large database of macroeconomic variables for OECD countries. We extract common factors to summarize the comovements of the variables and include them in stationary FAVAR...
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This paper studies macroeconomic consequences of oil price shocks caused by innovations in the monopoly power in the oil market. Monopoly power is interpreted as oil producers' ability to charge a markup over marginal costs. We propose a novel way to identify markup shocks based on meetings of...
Persistent link: https://www.econbiz.de/10014118702
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markups during 2000- 2015. Second, the markup increase is driven by already high-markup firms (top decile of the markup … distribution) that charge increasing markups. Third, markups increased mostly among advanced economies but not in emerging markets …. Fourth, there is a non-monotonic relation between firm size and markups that is first decreasing and then increasing. Finally …
Persistent link: https://www.econbiz.de/10012019850
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