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Firm R&D Investment and Export Market Exposure

November 12, 2018 Bilal 0

Firm R&D Investment and Export Market Exposure https://ift.tt/2Qls2Fl Firm R&D Investment and Export Market Exposure NBER Working Paper No. 25228 Issued in November 2018 NBER Program(s):International Trade and Investment, Productivity, Innovation, and Entrepreneurship In this article we study differences in the returns to R&D investment between firms that sell in international markets and firms that only sell in the domestic market. We use German firm-level data from the high-tech manufacturing sector to estimate a dynamic structural model of a firm’s decision to invest in R&D and use it to measure the difference in expected long-run benefit from R&D investment for […]

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Legal clauses and sovereign bond pricing in the euro area

November 12, 2018 Bilal 0

Legal clauses and sovereign bond pricing in the euro area https://ift.tt/2PctLA8 Sovereign bond pricing in the euro area: When legal clauses matter The discussion on sovereign debt restructuring in the euro area has recently focused on legal considerations, in particular on whether the legal framework should be reformed to make restructurings more ‘viable’, for example via new collective action clauses (Bénassy-Quéré et al. 2018, Tabellini 2018, Pisani-Ferry and Zettelmeyer 2018).  Should sovereign debts in Europe be ‘hard’ or ‘easy’ to restructure? The fundamental trade-off behind this question is well understood, at least theoretically (e.g. Bolton and Jeanne 2007, 2009, Pitchford […]

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Euro area reform: An anatomy of the debate | Bruegel

November 12, 2018 Bilal 0

Euro area reform: An anatomy of the debate | Bruegel https://ift.tt/2RvRPdU A year ago, a group of 14 French and German economists joined forces with the aim of forging common proposals for euro area reforms. Their report gave rise to a lively discussion among officials and academics. This Policy Insight summarises the group’s proposals and also addresses some of the points raised in a subsequent VoxEU.org debate on the topic. The euro is nearly 20 years old – ten quiet years followed by ten tumultuous ones. The end of the first decade was marked by glowing, oddly uncritical reviews. Ten years […]

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Beyond spreads: Measuring sovereign market stress in the euro area

October 16, 2018 Bilal 0

Beyond spreads: Measuring sovereign market stress in the euro area https://ift.tt/2QUOMeT JavaScript is disabled on your browser. Please enable JavaScript to use all the features on this page. Beyond spreads: Measuring sovereign market stress in the euro area☆ Abstract We develop a novel composite indicator to measure sovereign bond market stress in the euro area. The indicator integrates yield and liquidity spreads along with volatility into an overall measure of sovereign market stress. An application to the spillover literature suggests that stress mainly originates from a few countries, but that spillover patterns also vary over time. JEL classification C43 E44 […]

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It’s too early to talk of a ‘Brexodus’ – doing so ignores how many EU migrants have made Britain their home

September 5, 2018 Bilal 0

It’s too early to talk of a ‘Brexodus’ – doing so ignores how many EU migrants have made Britain their home https://ift.tt/2LYNvka As the deadline for a final Brexit deal approaches, close attention is being paid to statistics on the number of EU citizens living in Britain. In late August, after the Office for National Statistics published its latest long-term international migration estimates, news reports continued to talk of a “Brexodus” – the exodus of EU citizens from the UK ahead of Brexit. But such commentary, which is mirrored in academic debate, is overblown and it’s symptomatic of the assumptions […]

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Overcoming the hurdles to Italian Growth

September 4, 2018 Bilal 0

Overcoming the hurdles to Italian Growth https://ift.tt/2NOpm1L This opinion piece was also published in La Repubblica As the Italian government is contemplating its budgetary policy, it is useful to look at other countries’ experiences in how to deal with high debt levels. A salient example is Belgium as my colleague André Sapir is pointing out in an upcoming paper for Bruegel. Belgium […] This opinion piece was also published in La Repubblica As the Italian government is contemplating its budgetary policy, it is useful to look at other countries’ experiences in how to deal with high debt levels. A salient […]

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What Does Sweden Teach Us About Fighting Inequality?

September 4, 2018 Bilal 0

What Does Sweden Teach Us About Fighting Inequality? https://ift.tt/2LXbSyG When I first read reviews of Nima Sanandaji’s “Debunking Utopia: Exposing the Myth of Nordic Socialism” a couple of years ago, I found most of the reported claims of the book fairly uninteresting. For instance, Sanandaji claims that Nordic longevity is partially caused by healthy lifestyles not just high-quality public health care, which Sanandaji nonetheless thinks is a good idea (“I am myself in favor of the public sector providing health care.”). Characterizing this point as “debunking” seems a bit much insofar as I’ve never seen anyone argue that the presence […]

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Quantitative Sovereign Default Models and the European Debt Crisis — by Luigi Bocola, Gideon Bornstein, Alessandro Dovis

September 4, 2018 Bilal 0

Quantitative Sovereign Default Models and the European Debt Crisis — by Luigi Bocola, Gideon Bornstein, Alessandro Dovis https://ift.tt/2oAQBBV Quantitative Sovereign Default Models and the European Debt Crisis NBER Working Paper No. 24981 Issued in August 2018 NBER Program(s):Economic Fluctuations and Growth, International Finance and Macroeconomics, Monetary Economics A large literature has developed quantitative versions of the Eaton and Gersovitz (1981) model to analyze default episodes on external debt. In this paper, we study whether the same framework can be applied to the analysis of debt crises in which domestic public debt plays a prominent role. We consider a model where […]

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Was Brexit really caused by austerity? Here’s why we’re not convinced

September 4, 2018 Bilal 0

Was Brexit really caused by austerity? Here’s why we’re not convinced https://ift.tt/2PvW5ce Like most bad dramas, keeping up with every development in the Brexit saga is difficult. Nevertheless you may have seen recent reports in the media, including in The Conversation, that “austerity caused Brexit”. But we doubt that a clear answer can come from a look at economics alone. The idea that austerity swayed voters for Brexit is based on a paper by Thiemo Fetzer, an associate professor of economics at the University of Warwick. His paper claims to show that the welfare cuts under David Cameron’s coalition government […]

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The Long-Term Impact of Brexit on the European Union

September 3, 2018 Bilal 0

The Long-Term Impact of Brexit on the European Union https://ift.tt/2MaNheG By Jiaqian Chen, Christian Ebeke, Li Lin, Haonan Qu, and Jesse Siminitz August 10, 2018 Versions in Español, Français, Português A container ship entering the Port of Marseille, France: The UK is among the European Union’s largest trading partners, accounting for about 13 percent of its trade in goods and services (photo: Gerard Bottino/Newscom) When the United Kingdom leaves the European Union, higher barriers to trade, capital flows, and labor mobility will affect output and jobs not only in the UK but also in the remaining 27 EU member states. Since Brexit means […]