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  1. Fear thy neighbor
    spillovers from economic policy uncertainty
    Published: [2017]
    Publisher:  International Monetary Fund, [Washington, D.C.]

    High levels of economic policy uncertainty in various parts of the world revamped the de- bate about its impact on economic activity. With increasingly stronger economic, financial, and political ties among countries, economic agents have more... more

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    High levels of economic policy uncertainty in various parts of the world revamped the de- bate about its impact on economic activity. With increasingly stronger economic, financial, and political ties among countries, economic agents have more reasons to be vigilant of for- eign economic policy. Employing heterogeneous panel structural vector autoregressions, this paper tests for spillovers from economic policy uncertainty on other countries' economic ac- tivity. Furthermore, using local projections, the paper zooms in on shocks originating in the United States, Europe, and China. Our results suggest that economic policy uncertainty re- duces growth in real output, private consumption, and private investment, and that spillovers from abroad account for about two-thirds of the negative effect. Moreover, uncertainty in the United States, Europe, and China reduces economic activity in the rest of the world, with the effects being mostly felt in Europe and the Western Hemisphere

     

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  2. Fiscal spillovers in the euro area
    letting the data speak
    Published: November 2017
    Publisher:  International Monetary Fund, [Washington, D.C.]

    We estimate a panel VAR model that captures cross-country, dynamic interlinkages for 10 euro area countries using quarterly data for the period 1999-2016. Our analysis suggests that fiscal spillovers are significant and tend to be larger for... more

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    We estimate a panel VAR model that captures cross-country, dynamic interlinkages for 10 euro area countries using quarterly data for the period 1999-2016. Our analysis suggests that fiscal spillovers are significant and tend to be larger for countries with close trade and financial links as well, as for fiscal shocks originating from larger countries. The current account appears to be the main channel of transmission, although strong trade integration among countries in the euro area and spillback effects tend to zero-out the net trade impact in some cases. A subsample analysis shows that the effects of fiscal policy have changed over time, with larger estimated domestic multipliers and spillovers between 2011 and 2014

     

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  3. Lessons from the old masters on assessing equity and efficiency
    a primer for fiscal policymakers
    Published: October 2017
    Publisher:  International Monetary Fund, [Washington, D.C.]

    How can a society's well-being be measured to include not only average incomes but also their distribution? How can the effects of policies be assessed by considering both equity and efficiency? This primer outlines the seminal contributions of... more

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    How can a society's well-being be measured to include not only average incomes but also their distribution? How can the effects of policies be assessed by considering both equity and efficiency? This primer outlines the seminal contributions of influential economists of the past, including Arthur Okun, who developed a simple method to elicit people's preferences regarding redistribution, and Anthony Atkinson, who showed how equity and efficiency can be measured simultaneously and summarized in a single, intuitive index expressed in monetary units (such as dollars). These methods are applied to recent data to gauge how countries fare when both mean incomes and their distribution are considered together, and to a hypothetical tax-and-transfer scheme assessed through a general equilibrium model for household-level data

     

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  4. How financial conditions matter differently across Latin America
    Published: October 2017
    Publisher:  International Monetary Fund, [Washington, D.C.]

    This paper develops comparable financial conditions indices (FCIs) for the six large and most financially-integrated Latin American economies (LA6) by following Korobilis (2013) and Koop and Korobilis (2014). The main findings are as follows. First,... more

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    This paper develops comparable financial conditions indices (FCIs) for the six large and most financially-integrated Latin American economies (LA6) by following Korobilis (2013) and Koop and Korobilis (2014). The main findings are as follows. First, the estimated FCIs are influenced by a commodity cycle, a global financial cycle, as well as country-specific episodes of financial distress. Second, by early 2017, financial conditions remained favorable in most LA6 economies relative to historical standards. Third, the impact of financial shocks on economic activity widely varies across LA6 and is otherwise found to be stronger in periods of financial stress. Fourth, exposure to regional financial spillovers also differs across LA6

     

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  5. The granular origins of macroeconomic fluctuations in Europe
    Published: November 2017
    Publisher:  International Monetary Fund, [Washington, D.C.]

    This paper investigates the microeconomic origins of aggregate economic fluctuations in Europe. It examines the relevance of idiosyncratic shocks at the top 100 large firms (the granular shocks) in explaining aggregate macroeconomic fluctuations. The... more

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    This paper investigates the microeconomic origins of aggregate economic fluctuations in Europe. It examines the relevance of idiosyncratic shocks at the top 100 large firms (the granular shocks) in explaining aggregate macroeconomic fluctuations. The paper also assesses the strength of spillovers from large firms onto SMEs. Using firm-level data covering over 14 million firms and eight european countries (Austria, Belgium, Finland, France, Germany, Italy, Portugal and Spain), we find that: (i) 40 percent of the variance in GDP in the sample can be explained by idiosyncratic shocks at large firms; (ii) positive granular shocks at large firms spill over to domestic SMEs' output, especially if SMEs' balance sheets are healthy and if SMEs belong to the services and manufacturing sectors

     

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  6. International technology sourcing and knowledge spillovers
    evidence from OECD countries
    Published: March 2018
    Publisher:  International Monetary Fund, [Washington, D.C.]

    How much do firms benefit from foreign R and D and through what channel? We construct a global network of corporate innovation using more than 1.5 million patents granted to firms in OECD countries. We test the 'international technology sourcing'... more

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    How much do firms benefit from foreign R and D and through what channel? We construct a global network of corporate innovation using more than 1.5 million patents granted to firms in OECD countries. We test the 'international technology sourcing' hypothesis that foreign innovation activities tap into foreign R and D and improve home productivity through knowledge spillovers. We find that firms with stronger inventor presence in technology frontier countries benefit disproportionately more from their R and D. The strength of knowledge spillovers depends on the direction of technology sourcing. Knowledge externality is larger for firms in technology frontier countries than for firms in non-frontier countries

     

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  7. Trade-offs in bank resolution
    Published: 2018
    Publisher:  International Monetary Fund, [Washington, D.C.]

    This SDN revisits the debate on bank resolution regimes, first by presenting a simple model of bank insolvency that transparently describes the trade-off involved between bail-outs, bail-ins, and larger capital buffers. The note then looks for... more

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    This SDN revisits the debate on bank resolution regimes, first by presenting a simple model of bank insolvency that transparently describes the trade-off involved between bail-outs, bail-ins, and larger capital buffers. The note then looks for empirical evidence to assess the moral hazard consequences of bail-outs and the systemic spillovers from bail-ins

     

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  8. Determinants of U.S. business investment
    Published: June 2018
    Publisher:  International Monetary Fund, [Washington, D.C.]

    U.S. business investment has taken a serious toll during the global financial crisis and also in the recovery phase investment did not pick up as expected. What is surprising is that the alleged investment slowdown happened at a time of record... more

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    U.S. business investment has taken a serious toll during the global financial crisis and also in the recovery phase investment did not pick up as expected. What is surprising is that the alleged investment slowdown happened at a time of record corporate profits and retained earnings, highly supportive financial conditions, improved sentiment, rising equity valuations, and strong labor markets-factors established in supporting business investment. Applying accelerator models and Bayesian Model Averaging, this paper discusses the extent to which U.S. business investment has been unusual. Results suggest that cautious expectations of future aggregate demand growth explain most of the weakness in investment, and that the oil and gas sector accounts for a considerable portion of the investment slump. Consequently, the behavior of U.S. business investment in recent years has not been unusual once these factors are taken into account. Also, there is very little evidence for uncertainty holding back investment, or that firms' financial measures "crowded out" capital expenditure

     

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  9. A macroeconomic approach to the term premium
    Published: June 2018
    Publisher:  International Monetary Fund, [Washington, D.C.]

    In recent years, term premia have been very low and sometimes even negative. Now, with the United States economy growing above potential, inflationary pressures are on the rise. Term premia are very sensitive to the expected future path of growth,... more

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    In recent years, term premia have been very low and sometimes even negative. Now, with the United States economy growing above potential, inflationary pressures are on the rise. Term premia are very sensitive to the expected future path of growth, inflation, and monetary policy, and an inflation surprise could require monetary policy to tighten faster than anticipated, inducing to a sudden decompression of term and other risk premia, thus tightening financial conditions. This paper proposes a semi-structural dynamic term structure model augmented with macroeconomic factors to include cyclical dynamics with a focus on medium- to long-run forecasts. Our results clearly show that a macroeconomic approach is warranted: While term premium estimates are in line with those from other studies, we provide (i) plausible, stable estimates of expected long-term interest rates and (ii) forecasts of short- and long-term interest rates as well as cyclical macroeconomic variables that are stunningly close to those generated from large-scale macroeconomic models

     

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  10. Cross-border transmission of fiscal shocks
    the role of monetary conditions
    Published: May 2018
    Publisher:  International Monetary Fund, [Washington, D.C.]

    Fiscal stimulus was widely advocated during the global crisis, a period characterized by monetary policy constrained by the effective lower bound (ELB) in many countries, in part because of expected positive spillovers. Standard New Keynesian models... more

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    Fiscal stimulus was widely advocated during the global crisis, a period characterized by monetary policy constrained by the effective lower bound (ELB) in many countries, in part because of expected positive spillovers. Standard New Keynesian models predict the cross-border transmission of fiscal shocks is stronger when monetary policy is constrained in recipients. However, the empirical evidence is scarce. This paper bridges this gap by looking at the impact of fiscal shocks in systemic (source) economies on output and demand components in a large group of (recipient) countries, under different monetary policy conditions. Empirical results are compared to simulations with a state-of-the-art estimated open-economy New Keynesian model. Our results corroborate model predictions, finding larger spillovers when recipients are at the ELB, driven by stronger responses of investment and consumption relative to normal times

     

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  11. International spillovers of forward guidance shocks
    Published: April 2018
    Publisher:  International Monetary Fund, [Washington, D.C.]

    After 2007, countries that cut their policy interest rates close to zero turned, among other policies, to forward guidance. We estimate a two-country model of the U.S. and Canada to quantify how unexpected changes in U.S. forward guidance affected... more

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    After 2007, countries that cut their policy interest rates close to zero turned, among other policies, to forward guidance. We estimate a two-country model of the U.S. and Canada to quantify how unexpected changes in U.S. forward guidance affected Canada. Expansionary U.S. forward guidance shocks, like conventional policy shocks, are beggar-thy-neighbor and depress Canadian output, but by twice as much as conventional shocks. We find that the effect of U.S. forward guidance shocks on Canadian output, unlike conventional policy shocks, depends on the state of U.S. demand and can be five times smaller when U.S. demand is weak

     

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  12. Long-run market configurations in a dynamic quality-ladder model with externalities
    Published: November 2017
    Publisher:  CIRANO, Centre interuniversitaire de recherche en analyse des organisations, Montréal

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    Language: English
    Media type: Book
    Format: Online
    Series: Scientific series / CIRANO, Centre interuniversitaire de recherche en analyse des organisations ; 2017s, 24
    Subjects: Differentiated-good markets; Quality-ladder model; Externalities; Industry dynamics; Market structures
    Scope: 1 Online-Ressource (circa 31 Seiten), Illustrationen
  13. Traffic and the provision of public goods
    Published: May 2018
    Publisher:  Department of Economics, Louisiana State University, Baton Rouge, LA

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    Series: Department of Economics working paper series / LSU, E.J. Ourso College of Business, Department of Economics ; Working paper 2018, 04
    Subjects: Traffic; Public Goods; Externalities; Emergency Response Times
    Scope: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  14. Trade-offs in bank resolution
    Published: 2018
    Publisher:  International Monetary Fund, [Washington, D.C.]

    This SDN revisits the debate on bank resolution regimes, first by presenting a simple model of bank insolvency that transparently describes the trade-off involved between bail-outs, bail-ins, and larger capital buffers. The note then looks for... more

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    This SDN revisits the debate on bank resolution regimes, first by presenting a simple model of bank insolvency that transparently describes the trade-off involved between bail-outs, bail-ins, and larger capital buffers. The note then looks for empirical evidence to assess the moral hazard consequences of bail-outs and the systemic spillovers from bail-ins

     

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  15. Revenue potential of passenger and goods tax (PGT) across Indian states
    Published: [2024]
    Publisher:  National Institute of Public Finance and Policy, New Delhi

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: NIPFP working paper series ; no. 416 (09-July-2024)
    Subjects: Revenue potential; State Finances; Taxes on passengers and goods; Externalities; Tax on Mobility; India
    Scope: 1 Online-Ressource (circa 39 Seiten), Illustrationen
  16. The project of the Baron de Hirsch
    success or failure?
    Published: 2005
    Publisher:  Univ. del CEMA, Buenos Aires

    In 1891, Baron Maurice de Hirsch founded the Jewish Colonization Association (J.C.A.), through which he would manage a gigantic social welfare project concerning the immigration of thousands of people from the Russian Empire towards Argentina, and... more

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    In 1891, Baron Maurice de Hirsch founded the Jewish Colonization Association (J.C.A.), through which he would manage a gigantic social welfare project concerning the immigration of thousands of people from the Russian Empire towards Argentina, and their settlement in agricultural colonies. In this paper, we evaluate the result of this project, which is generally qualified as a failure by historians on the subject. We hold an alternative hypothesis, wholly opposed to this conclusion: if the social evaluation of the project were carried out, taking into account the externality it generated, the conclusion would be that the project was highly successful; even though its private evaluation ,which implicitly is the usually made evaluation, would lead to the conclusion that it was a total failure. This externality is reflected in the number of immigrants arriving in the country independently of the J.C.A., but who would have never come here were it not be for Baron de Hirsch's project, since it placed Argentina on the map of East European Jewry, in a world in which the dissemination of information was slow and deficient.

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/84389
    Series: Array ; 289
    Subjects: Externalities; Baron Maurice de Hirsch; Jewish Colonization Association
    Scope: Online-Ressource (30 S.)
    Notes:

    Parallel als Druckausg. erschienen

  17. Commuting subsidies in Belgium
    implementation in the PLANET model
    Published: October 2016
    Publisher:  Federal Planning Bureau, Brussels

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    Series: Working paper / Federal Planning Bureau ; 16, 11
    Subjects: Externalities; Personal Income Tax and Subsidies; Transportation: Demand; Supply and Congestion
    Scope: 1 Online-Ressource (circa 31 Seiten), Illustrationen
  18. Tax expenditure and the cost of labour taxation
    an application to company car taxation
    Published: June 2017
    Publisher:  Federal Planning Bureau, Brussels

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    Source: Union catalogues
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    Series: Working paper / Federal Planning Bureau ; 17, 7
    Subjects: Efficiency; Optimal Taxation; Externalities; Redistributive Effects; Personal Income Tax and Subsidies; Transportation: Demand; Supply and Congestion
    Scope: 1 Online-Ressource (circa 28 Seiten)
  19. Externalities and the nucleolus
    Published: [2017]
    Publisher:  [Départment de Sciences Économiques, Université de Montréal], [Montréal]

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    VS 33 (2017,4)
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    Other identifier:
    hdl: 1866/19684
    Series: [Cahier de recherche] / [Département de Sciences Économiques, Université de Montréal] ; [2017, 04]
    Subjects: Externalities; Partition function; Nucleolus; Reduced game
    Scope: 1 Online-Ressource (circa 13 Seiten)
  20. Extensions of the shapley value for environments with externalities
    Published: October 2017
    Publisher:  GSE, Graduate School of Economics, Barcelona

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    Format: Online
    Series: Barcelona GSE working paper series ; no 1002
    Subjects: Shapley value; Externalities
    Scope: 1 Online-Ressource (circa 30 Seiten)
  21. Production externalities and investment caps
    a welfare analysis under uncertainty
    Published: [2019]
    Publisher:  Department of Economics, Ca’ Foscari University of Venice, Venice Italy

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    VS 495
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    Series: Working paper / Ca' Foscari University of Venice, Department of Economics ; 2019, no. 07
    Subjects: Investment; Uncertainty; Caps; Competition; Externalities; Welfare
    Scope: 1 Online-Ressource (circa 56 Seiten), Illustrationen
  22. Robbing Peter to Pay Paul? The Redistribution of Wealth Caused by Rent Control
    Published: May 2022
    Publisher:  National Bureau of Economic Research, Cambridge, Mass

    We use the price effects caused by the passage of rent control in St. Paul, Minnesota in 2021, to study the transfer of wealth across income groups. First, we find that rent control caused property values to fall by 6-7%, for an aggregate loss of... more

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    We use the price effects caused by the passage of rent control in St. Paul, Minnesota in 2021, to study the transfer of wealth across income groups. First, we find that rent control caused property values to fall by 6-7%, for an aggregate loss of $1.6 billion. A calibrated model of house prices under rent control attributes a third of these losses to indirect, negative externalities. Second, leveraging administrative parcel-level data, we find that the tenants who gained the most from rent control had higher incomes and were more likely to be white, while the owners who lost the most had lower incomes and were more likely to be minorities. For properties with high-income owners and low-income tenants, the transfer of wealth was close to zero. Thus, to the extent that rent control is intended to transfer wealth from high-income to low-income households, the realized impact of the law was the opposite of its intention

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: NBER working paper series ; no. w30083
    Subjects: Verteilungswirkung; Mietenpolitik; USA; Allocative Efficiency; Cost–Benefit Analysis; Externalities; Household Saving, Borrowing, Debt, and Wealth; Externalities; Redistributive Effects; Environmental Taxes and Subsidies; Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics; Housing Supply and Markets; Other Spatial Production and Pricing Analysis; Government Policy
    Scope: 1 Online-Ressource, illustrations (black and white)
    Notes:

    Hardcopy version available to institutional subscribers

  23. Allocation mechanisms, incentives, and endemic institutional externalities
    Published: [2018]
    Publisher:  Centre for Research in Economic Theory and its Applications, Coventry, United Kingdom

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    Source: Union catalogues
    Language: English
    Media type: Book
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    Edition: Revised October 2018
    Series: Discussion paper series / Centre for Research in Economic Theory and its Applications ; no: 42
    Subjects: Externalities; pecuniary externalities; strategyproof mechanisms; institutional externalities
    Scope: 1 Online-Ressource (circa 16 Seiten)
  24. Pandemic pressures and public health care
    evidence from England
    Published: [2022]
    Publisher:  University of Warwick, Department of Economics, Coventry, United Kingdom

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    VS 623
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    Language: English
    Media type: Book
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    Series: Warwick economics research papers ; no: 1395 (January 2022)
    Subjects: Health; Externalities; COVID-19; Coronavirus; Excessdeaths; Cancer; NHS; Public healthcare
    Scope: 1 Online-Ressource (circa 81 Seiten), Illustrationen
  25. Cars in Europe
    supply chains and spillovers during COVID-19 times
    Published: 2022 JAN
    Publisher:  International Monetary Fund, [Washington, D.C.]

    The auto sector is macro-critical in many European countries and constitutes one of the main supply chains in the region. Using a multi-sector and multi-country general equilibrium model, this paper presents a quantitative assessment of the impact of... more

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    The auto sector is macro-critical in many European countries and constitutes one of the main supply chains in the region. Using a multi-sector and multi-country general equilibrium model, this paper presents a quantitative assessment of the impact of global pandemic-induced labor supply shocks-both directly and via supply chains-during the initial phase of the COVID-19 pandemic on the auto sector and aggregate activity in Europe. Our results suggest that these labor supply shocks would have a significant adverse impact on the major auto producers in Europe, with one-third of the decline in the value added of the car sector attributable to spillovers via supply chains within and across borders. Within borders, the pandemic-induced labor supply shocks in the services sector have a bigger adverse impact, reflecting their larger size and associated demand effects. Across borders, spillovers from the pandemic-induced labor supply shocks that originate in other European countries are larger than those that originate outside the region, though the latter are still sizable

     

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