Publications

This paper investigates productivity effects for a given firm resulting from the import or export of intermediate inputs by domestic upstream and downstream industries. With the use of manufacturing firms in 19 EU countries over the period 2000–2014, we find that domestic access to intermediate inputs that are also exported leads to higher levels of revenue productivity. The effect appears as more prominent for firms with nonforeign ownership ...

Copyright © Cambridge University Press 2018 This paper focuses on the possibility that financial markets require risk premia on holding sovereign debt of countries that appear vulnerable from a fiscal sustainability perspective. Both the level of debt as well as the rate of change of debt are assumed to impact on the risk premium. We analyze the impact of such an endogenous risk premium in a simple debt game between a monetary and a fiscal ...

© 2018 Elsevier Inc. This paper analyzes how the introduction of Eurobonds affects debt dynamics in a two-country monetary union model. Monetary and fiscal authorities are engaged in dynamic government debt stabilization games in which interest rates on government debt adjust endogenously. Three different equilibria are considered: the non-cooperative Nash open-loop equilibrium, the fiscal coordination equilibrium and the fully cooperative ...

© 2017 Elsevier B.V. This paper analyses debt stabilization in a monetary union that features endogenous risk premia. In particular, debt stabilization in two diametrically opposed regimes is compared. In the first regime, the “national fiscal discipline regime” financial markets impose sovereign risk premia based on each country's government debt level. In the second regime, the “Eurobonds regime” financial markets impose a risk premium based ...

© 2017, The Author(s). This study extends the current New Keynesian modeling framework by changing one crucial aspect: it replaces the general equilibrium assumption by the arguably more realistic assumption of macroeconomic disequilibrium. As a result, more complex and less smooth macroeconomic adjustment dynamics result, as it is not necessary to assume that goods and labor markets continuously clear. The disequilibrium dynamics in the form of ...

© 2017, Springer International Publishing AG. This is paper considers the role of economic sentiment and economic uncertainty in explaining economic adjustment in the Euro area during the Financial Crisis and Great Recession. The analysis is based on VAR models of economic activity, sentiment and uncertainty in four sectors—industry, retail, services and construction. Evidence is found that sentiment and uncertainty have non-negligible effects ...