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We develop a stochastic, general equilibrium, two-country model of trade and macroeconomic dynamics. Productivity differs across individual, monopolistically competitive firms in each country. Firms face a sunk entry cost in the domestic market and both fixed and per-unit export costs. Only relatively more productive firms export. Exogenous shocks to(More)
We study Ramsey-optimal fiscal policy in an economy in which product varieties are the result of forward-looking investment decisions by firms. There are two main results. First, depending on the particular form of variety aggregation in preferences, firms' dividend payments may be either subsidized or taxed in the long run. This policy balances monopoly(More)
International financial integration has greatly increased the scope for changes in a country's net foreign asset position through the " valuation channel " of external adjustment, namely, capital gains and losses on the country's external assets and liabilities. We examine this valuation channel theoretically in a dynamic equilibrium portfolio model with(More)
  • Gian Luca, Clementi, Berardino Palazzo, Fernando Alvarez, Dave Backus, Nick Bloom +10 others
  • 2010
Do firm entry and exit play a major role in shaping aggregate dynamics? Our answer is yes. Entry and exit amplify and propagate the effects of aggregate shocks. In turn, this leads to greater persistence and unconditional variation of aggregate time series. These results stem from well-documented features of firm dynamics such as pro– cyclical entry and the(More)
>IJH=?J We show that even when the exchange rate cannot be devalued, a small set of conventional scal instruments can robustly replicate the real allocations attained under a nominal exchange rate devaluation in a dynamic New Keynesian open economy environment. We perform the analysis under alternative pricing assumptionsproducer or local currency pricing,(More)
  • Diego Comin, Norman Loayza, Farooq Pasha, Luis Serven, Freddy Rojas, Naotaka Sugawara +12 others
  • 2014
Business cycle fluctuations in developed economies (N) tend to have large and persistent effects on developing countries (S). We study the transmission of business cycle fluctuations for developed to developing economies with a two-country asymmetric DSGE model with two features: (i) endogenous development of new technologies in N , and (ii) sunk costs of(More)
  • Stefania Garetto, Costas Arkolakis, George Alessandria, Susanto Basu, Thomas Chaney, Fabio Ghironi +12 others
  • 2009
This paper starts by unveiling a strong empirical regularity: multinational corporations exhibit higher stock market returns and earning yields than non-multinational firms. Within non-multinationals, exporters exhibit higher earning yields and returns than firms selling only in their domestic market. To explain this pattern, we develop a real option value(More)
This paper examines the link between capital controls and monetary policy autonomy in a country with a floating exchange rate. Large swings in net capital flows into emerging markets can potentially lead to excessive volatility in asset prices and credit supply. In order to lessen the impact of capital flows on financial instability, a central bank with a(More)
Welcome Feel free to address me as Fabio. You can of course address me as Professor Ghironi if you prefer to do so. You can find out a lot about me by visiting my web site. This course explores the history and functioning of international monetary arrangements and economic relations from the early 20 th century to the present day. We will study the(More)
This course is for students who are seriously interested in international economics, who are willing to do a considerable amount of reading, and who are ready to use math tools that are standard for undergraduates all over the world. Macroeconomic Theory is a serious prerequisite. If you forgot your macro and want to take this course, you should review your(More)