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Roughly one-third of world trade is intrafirm trade. This paper starts by unveiling two systematic patterns in the volume of intrafirm trade. In a panel of industries, the share of intrafirm imports in total U.S. imports is significantly higher, the higher the capital intensity of the exporting industry. In a cross-section of countries, the share of(More)
I analyze an economy in which pro…t-maximizing …rms can undertake both labor-or capital-augmenting technological improvements. In the long run, the economy looks like the standard growth model with purely labor-augmenting technical change, and the share of labor in GDP is constant. Along the transition path, however, there is capital-augmenting technical(More)
We study the optimal tradeoff between commitment and flexibility in a consumption-savings model. Individuals expect to receive relevant information regarding tastes, and thus value the flexibility provided by larger choice sets. On the other hand, they also expect to suffer from temptation, with or without self-control, and thus value the commitment(More)
Crises, such as currency attacks, bank runs and riots, can be described as times of non-fundamental volatility. We argue that crises are also times when endogenous sources of information are closely monitored and thus an important part of the phenomena. We study the role of endogenous information in generating non-fundamental volatility by introducing a(More)
  • Iván Werning, Manuel Amador, George-Marios Angeletos, Emmanuel Farhi, Jordi Galí, Karel Mertens +3 others
  • 2012
I study monetary and fiscal policy in liquidity trap scenarios, where the zero bound on the nominal interest rate is binding. I work with a continuous-time version of the standard New Keynesian model. Without commitment the economy suffers from deflation and depressed output. I show that, surprisingly, both are exacerbated with greater price flexibility. I(More)
  • Claudio Raddatz, Manuel Amador, Olivier Blanchard, Toan Do, Eduardo Engel, Barret Kirwan +2 others
  • 2002
This paper provides evidence of a causal and economically important effect of financial development on volatility. In contrast to the existing literature, the identification strategy is based on the differences in sensitivities to financial conditions across industries. The results show that sectors with larger liquidity needs are more volatile and(More)
  • Nir Jaimovich, Henry E Siu, Manuel Amador, Gadi Barlevy, Paul Beaudry, Larry Christiano +13 others
  • 2007
The baby boom and subsequent baby bust in the United States resulted in dramatic shifts in the age composition of the American population. Japan, Germany, and other industrialized countries have experienced similarly dramatic demographic change during the postwar period, although the details regarding timing and nature differ from place to place. In this(More)
Lane for sharing their crosscountry data on foreign asset positions. We also thank participants at several universities and conferences. Financial support from the National Science Foundation is gratefully acknowledged: Quadrini with grant SES-0617937 and Ríos-Rull with grant SES-0079504. The views expressed herein are those of the authors and not(More)
  • Manuel Amador, Pierre-Olivier Weill, George-Marios Angeletos, Andy Atkeson, Gadi Barlevy, Doireann Fitzgerald +8 others
  • 2007
We study the effect of releasing public information about productivity or monetary shocks (for example, as a consequence of publishing an economic aggregate) using a micro-founded macroeconomic model where agents learn from the distribution of nominal prices. While a public release has the direct beneficial effect of providing new information , it can also(More)