Results

Journal article

Journal of the European Economic Association:

Innovation union: costs and benefits of innovation policy coordination

What is the scope for international cooperation in innovation policy in economies closely integrated via trade? We address this question by building a two-region innovation-driven growth model with endogenous technology ...Read more...

CEP discussion paper

A few Euro more: benefit generosity and the optimal path of unemployment benefits

In this paper, we exploit the provision of higher UB at different points of the unemployment spell to shed light on the relative cost of insurance at different horizons after the job loss. First, we exploit a double cap ...Read more...

Journal article

Revista do Servico Publico:

Lockdown 101: managing economic lockdowns in an epidemic

Countries worldwide have implemented lockdown measures to contain the covid-19 pandemic. After more than three months of restrictions to economic activities in many countries, the question has turned to the best ways to ...Read more...

CEP discussion paper

Innovation union: costs and benefits of innovation policy coordination

We build a two-region endogenous growth model to analyse the gains from innovation policy cooperation in an economic union. The model is calibrated to two blocks of the EU: the old and new members. R&D subsidy coordinati...Read more...

CEP discussion paper

Subsidizing labor hoarding in recessions: the employment and welfare effects of short time work

The Great Recession has seen a revival of interest in policies encouraging labor hoarding by firms. Short time work (STW) policies, which consist in offering subsidies for hours reductions to workers in firms experiencin...Read more...

CEP policy analysis

The impact of 'clean innovation' on economic growth: evidence from the transport and energy industries'

Policies on climate change that encourage 'clean innovation' while displacing 'dirty innovation' could have a positive impact on short-term economic growth while avoiding the potentially disastrous reduction in GDP that ...Read more...

CEP discussion paper

Knowledge spillovers from clean and dirty technologies

How much should governments subsidize the development of new clean technologies? We use patent citation data to investigate the relative intensity of knowledge spillovers in clean and dirty technologies in two technologi...Read more...

CEP discussion paper

Capital Controls or Exchange Rate Policy? A Pecuniary Externality Perspective

In the aftermath of the global financial crisis, a new policy paradigm has emerged in which old-fashioned policies such as capital controls and other government distortions have become part of the standard policy toolkit...Read more...

CEP discussion paper

Wishful Thinking

An experiment tested whether and in what circumstances people are more likely to believe an event simply because it makes them better off. Subjects observed a financial asset's historical price chart, and received both a...Read more...

CEP discussion paper

Monetary Policy Under Alterative Asset Market Structures: the Case of a Small Open Economy

Can the structure of asset markets change the way monetary policy should be conducted? Following a linear-quadratic approach, the present paper addresses this question in a New Keynesian small open economy framework. Our...Read more...

CEP discussion paper

On the International Dimension of Fiscal Policy

This paper analyses the international dimension of fiscal policy using a small open economy framework in which the government finances its spending by levying distortionary taxation and issuing non-state-contingent debt....Read more...

Journal article

Journal of Public Economics:

The marginal utility of income

In normative public economics it is crucial to know how fast the marginal utility of income declines as income increases. One needs this parameter for cost-benefit analysis, for optimal taxation and for the (Atkinson) me...Read more...

CEP discussion paper

Optimal External Debt and Default

This paper analyses whether sovereign default episodes can be seen as contingencies of optimal international lending contracts. The model considers a small open economy with capital accumulation and without commitment to...Read more...

CEP discussion paper

Robustly Optimal Monetary Policy

This paper analyses optimal monetary policy in response to shocks using a model that avoids making specific assumptions about the stickiness of prices, and thus the nature of the Phillips curve. Nonetheless, certain robu...Read more...

CEP discussion paper

The Maastricht Convergence Criteria and Optimal Monetary Policy for the EMU Accession Countries

The EMU accession countries are obliged to fulfill the Maastricht convergence criteria prior to entering the EMU. What should be the optimal monetary policy satisfying these criteria? To answer this question, the paper p...Read more...

CEP discussion paper

The Marginal Utility of Income

In normative public economics it is crucial to know how fast the marginal utility of income declines as income increases. One needs this parameter for cost-benefit analysis, for optimal taxation and for the (Atkinson) me...Read more...

CEP discussion paper

Is Numerairology the Future of Monetary Economics? Unbundling numeraire and medium of exchange through a virtual currency and a shadow exchange rate

The paper discusses some fundamental problems in monetary economics associated with the determination and role of the numeraire. The issues are introduced by formalising a proposal, attributed to Eisler, to remove the ze...Read more...

CEP discussion paper

Monetary Policy and Welfare in a Small Open Economy

This paper characterizes welfare in a small open economy and derives the corresponding optimal monetary policy rule. It shows that the utility-based loss function for a small open economy is a quadratic expression in dom...Read more...