Over the last fifteen years, emerging economies have been exposed to severe episodes of financial crises. In the mean time, an increasing share of investments is delegated to mutual funds. In this paper, we propose a small open-economy model where international investors hire fund managers to...

Life-cycle saving profiles show striking differences across countries. At all ages, saving as a percentage of disposable income is higher in Italy than in the United States. The saving profile is also much flatter. This paper focuses on the effect of differences in credit market development on...

We develop a multi-sector general equilibrium model in which productivity growth is driven by the production of sector-specific knowledge. In the model, we find that long run differences in total factor productivity growth across sectors are independent of the parameters of the knowledge...

As such, this represents a DSGE framework that can be used to analyze the effects of macroeconomic shocks, as well as systematic and unsystematic monetary policy on the yield curve.

accounts for a significant part of this moderation.

We address the question of whether and how a sovereign should reduce its external indebtedness when default is a significant possibility, with a particular focus on whether a sovereign should buy back or dilute existing long-term sovereign bonds. Our main finding is that when reduction of debt...

In many markets, sellers advertise their good with an asking price. This is a price at which the seller will take his good off the market and trade immediately, though it is understood that a buyer can submit an offer below the asking price and that this offer may be accepted if the seller...

Prepayment risk is a major consideration in the US credit card market. According to industry studies, about 17% of balances are transferred annually. Using a dynamic model of repricing, this paper analyzes the impact of prepayment risk on the functioning of the credit card market. We show that...

In this paper, we examine the the determinents of the evolution of male hours by years of schooling within the U.S. between the mid-1960s through the late 2000s. We quantify the extent to which changes in wages, changes in female labor supply, changes in the taxes and transfers, changes in the...

In this paper we study the impact of moral hazard in labor contracts on the cross-sectional wage distribution, in particular, its effect on the extent of residual wage inequality. The tool of our analysis is a search model with job-to-job mobility and firm competition for workers. In our...