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The purpose of this paper is to test for the presence of habit formation in consumption decisions using household panel data. We use the test proposed by Meghir and Weber (1996) and estimate the within-period marginal rate of substitution between commodities, which is robust to the presence of liquidity constraints. To that end, we use a Spanish panel data(More)
In this paper I construct a two-sector, input-output growth model to quantify the role of the structural transformation between manufacturing and services in reducing the U.S. GDP volatility. For a sector with a given gross output TFP volatility, value added TFP volatility is an increasing function of the share of intermediate goods in gross output. In the(More)
Sharing risks is one of the essential economic roles of families. The importance of this role increases in the amount of uncertainty that agents face and the degree of financial market incompleteness. We develop a theory of joint household search in frictional labor markets under incomplete financial markets. Couples households can insure themselves by(More)
S. (2016). THERMAP: a mid-infrared spectro-imager for space missions to small bodies in the inner solar system. Experimental Astronomy, 41 pp. 95–115. For guidance on citations see FAQs. Copyright and Moral Rights for the articles on this site are retained by the individual authors and/or other copyright owners. For more information on Open Research(More)
This paper reconciles two, apparently, contradictory facts about the Spanish economy: real GDP per working age person has grown at 2.4 percent during the period 1996-2007, on average, whereas Total Factor Productivity has been stagnant during that period. Here we argue that the Spanish economy has grown, in spite of stagnant TFP, because investment in(More)
What causes financial crises? I show that shocks to the volatility of total factor productivity (TFP) can generate endogenous variations in loan-to-value (LTV) ratios and trigger credit crunches, without appealing to financial shocks. Using a panel of countries, I find that financial crises coincide with the reversal of a long period of low volatility of(More)
In this paper we propose a theory of investment and energy use to study the response of macroeconomic aggregates to energy price shocks. In our theory this response depends on the interaction between the energy efficiency built in capital goods (which is irreversible throughout their lifetime) and the growth rate of Investment Specific Technological Change(More)
Empirical evidence shows that vertically integrated producers are more productive, bigger and are matched to better suppliers (with high productivity and size). I present a dynamic stochastic model of an industry with heterogeneous …rms interacting as buyers and sellers, and market frictions that induce a holdup problem to the manufacturers to account for(More)
Here we investigate the existence of credit in a cash-in-advance economy where there are complete markets but for the fact that agents cannot commit to repay their debts. Defectors are banned from the credit market but they can use money balances for saving purposes. Without uncertainty, deflation crowds out credit completely. The equilibrium allocation,(More)