This paper builds a large overlapping generations model of a small open economy featuring imperfect competition in the labor and product markets to understand i) which were the main determinants of the large expansionary phase experienced in Spain from the mid-1990s until the arrival of the...

We provide a model with sector-specific debt-collateral constraints to analyze how asymmetric financing conditions across sectors affect the aggregate investment, credit and output composition. In our model, investments in the construction sector allow for higher leverage than investments in the...

Evento: Presentación del Informe Económico de Aragón. Organizado por: Cámara de Comercia de Zaragoza. ; Crecimiento del PIB mayor del esperado (1,1% intertrimestral) sustentado, principalmente, en la “reapertura” de la economía. La inflación continuó sorprendiendo al alza y...

Evento: Situación y perspectivas económicas en el contexto actual; Organizado por: Caja Rural de Asturias y Llana Consultores ; Es responsabilidad del BCE mantener la estabilidad de precios en el área del euro. Esta es la mejor contribución que la política monetaria puede efectuar para...

Some pieces of empirical evidence suggest that in the U.S., over the last few decades, (i) wage inequality between-plants has risen much more than wage inequality within-plants and (ii) there has been an increase in the segregation of workers by skill into separate plants. This paper presents a...

This paper uses an intertemporal model of the current account to evaluate the fluctuations in current account balances experienced by Euro area countries over the last three decades. In the model current account balances are used to smooth consumption and they are driven by expectations about...

We propose a new numerical method to solve stochastic models that combines the parameterized expectations (PEA) and the Smolyak algorithms. This method is especially convenient to address problems with occasionally binding constraints (a feature inherited from PEA) and/or a large number of state...

This paper studies how investment and production in an economy is allocated across sectors when they face asymmetric financial conditions. Namely, when investors in one sector may run projects with higher loan-to-values than in another sector. Investors decide where to invest based on total...