In this paper we examine the impact of non-trading firms on labour productivity and its persistence in response to macroeconomic shocks, through their entry and exit into the domestic market, in a model with monopolistic competition and heterogeneous firms. We quantify the effects of various...

This article introduces an innovative and exible dynamic forward calibration method for disaggregated new quantitative trade models, particularly the Eaton and Kortum model, within a computable general equilibrium framework. The model is parameterized based on distinct, consistent future...

This study presents four economic scenarios for Europe until 2040. The scenarios are developed around two key uncertainties: international cooperation and institutional reforms.  In the scenarios Strong Europe (SE) and Global Economy (GE), international cooperation is prominent, while the...

This paper assesses the welfare impact of trade and technology diffusion as well as the change in the cross-country distribution of GDP due to removal of trade costs and diffusion barriers. The model extends the multi-country Ricardian trade model of Alvarez and Lucas (2007) to include...

We scrutinize the impact of international productivity gains (spillovers) induced by imports and exports on optimal tariffs. First, we solve a stylized 2x2 trade model of a large open economy and show that (a) productivity gains via exports and imports both reduce the strategically optimal...

Our recent work examines the links among innovations, technology, trade, and growth. One strand focuses on research activity, technology diffusion, and growth. The other examines technology and trade. In this paper we exploit the common treatment of technology in these two strands to provide a...

Financial services are characterised by the integration of customers while the service is being delivered. This integration leads to interruptions and thus delays in the processing of a customer order until for example the customer provides the missing input. Because customer behaviour can only...

A system of regression equations (SURE) for analyzing panel data with random heterogeneity in intercepts and coefficients, and unbalanced panel data is considered. A Maximum Likelihood (ML) procedure for joint estimation of all parameters is described. Since its implementation for numerical...

This paper develops and estimates a model of firm-level fixed capital investment when firms face borrowing constraints. Dynamically optimal investment functions are derived for the firms with and without financial constraints. These policy functions are then used to construct the likelihood of...