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Browsing Department of Economics (ECO) by Author "DEDOLA, Luca"
Now showing items 1-16 of 16
Title:The International Risk-Sharing Puzzle is at Business Cycle and Lower Frequency
Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; VIANI, FrancescaDate:2011-01-01Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We decompose the Backus-Smith [1993] statistic -- a low or negative correlation between relative consumption and the real exchange rate at odds with a high degree of international risk sharing -- in its dynamic components ...
Title:Optimal Monetary Policy in Open Economies
Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; LEDUC, SylvainDate:2010Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:This chapter studies optimal monetary stabilization policy in interdependent open economies, by proposing a unified analytical framework systematizing the existing literature. In the model, the combination of complete ...
Title:High exchange-rate volatility and low pass-through
Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; LEDUC, SylvainDate:2008Type of Publication:ArticleAbstract:Two specifications of an open-economy model are shown to generate high exchange-rate volatility and low exchange-rate pass-through (ERPT). In the model, price discrimination causes ERPT to be incomplete in both the short ...
Title:The International Dimension of Productivity and Demand Shocks in the US Economy
Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; LEDUC, SylvainDate:2008Type of Publication:Working PaperSeries/Report no.:CEPRAbstract:This paper investigates the international dimension of productivity and demand shocks to US manufacturing. Identifying shocks with sign restrictions based on standard theory predictions we find that productivity gains in ...
Title:International Risk Sharing and the Transmission of Productivity Shocks
Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; LEDUC, SylvainDate:2008Type of Publication:ArticleAbstract:This paper shows that standard international business cycle models can be reconciled with the empirical evidence on the lack of consumption risk sharing. First, we show analytically that with incomplete asset markets ...
Title:Optimal Monetary Policy and the Sources of Local-Currency Price Stability
Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; LEDUC, SylvainDate:2007Type of Publication:Working PaperSeries/Report no.:EUI RSCASAbstract:We analyze the policy trade-offs generated by local currency price stability of imports in economies where upstream producers strategically interact with downstream firms selling the final goods to consumers. We study the ...
Title:Productivity, External Balance and Exchange Rates: Evidence on the Transmission Mechanism among G7 Countries
Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; LEDUC, SylvainDate:2006Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:This paper investigates the international transmission of productivity shocks
in a sample of ve G7 countries. For each country, using long-run restrictions,
we identify shocks that increase permanently domestic labor ...
Title:DSGE Models of High Exchange-Rate Volatility and Low Pass-Through
Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; LEDUC, SylvainDate:2005Type of Publication:Working PaperSeries/Report no.:CEPR Discussion PapersAbstract:This paper develops a quantitative, dynamic, open-economy model which endogenously generates high exchange rate volatility, whereas a low degree of exchange rate pass-through (ERPT) stems from both nominal rigidities (in ...
Title:International Risk Sharing and the Transmission of Productivity Shocks
Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; LEDUC, SylvainDate:2004Type of Publication:Working PaperSeries/Report no.:CEPR discussion paperAbstract:A central puzzle in international finance is that real exchange rates are volatile and, in stark contradiction to efficient risk sharing, negatively correlated with cross-country consumption ratios. This Paper shows that ...
