I want to share our new publication titled “Commodity Prices and Production Networks in Small Open Economies” (joint with @Asilvub P. Caraiani and J. Olaya) at the Journal of Economic Dynamics and Control

RT @ludwigstraub: New paper on recent US tariffs with Matt Rognlie and @a_auclert. Our focus: effects of temporary increases in tariffs (“t….

RT @javier_turen: 📢📊Can professional forecasters be "Rationally Inactive"? .Along with the great @isaacbaley we wrote a VOXEU Column to di….

RT @profholden: Totally brilliant.

RT @IvanWerning: Interesting to see some basic demand theory applied to tariff choices. So…. What’s wrong with it? . Used in isolation on a….

RT @chiaralac: Submit Submit Submit.🥳.And please RT!.

Must read.

Updated draft with a new title. Extended model that explicitly considers the early withdrawal policy and the withdrawal decision. Check it out!.

RT @t_holden: The Bundesbank's research centre has resources to hire one or more visiting macro researchers, on contracts from 6 months to….

Here the link to our working paper

Very important paper! We used @Asilvub predictions in Chapter 1 (Commodity Special Feature). It provides a very appealing and intuitive way to think about commodity price shocks, in this case metals, transmitting in small open economies via domestic production networks.

RT @Asilvub: I am happy to see my JMP as a @BostonFed working paper! I show how, in a small open economy, production networks alter the el….

@Asilvub (Working paper version .

We started these project many years ago. We benefited from excellent comments, RAs, referees and editors. Special thanks to @Asilvub, the leading author of this project, for his dedication/precision/attention to details and patience. Finally, our experience at JEDC was excellent!.

(ii) non-unitary elasticities of substitution in production are crucial for understanding the observed cross-sectional effects of these fluctuations.

The key take aways from the model are that: (i) the network-adjusted labor share of the commodity sector, rather than the sector’s size, is key to understanding the real wage’s response to commodity price fluctuations; and.

We provide evidence of upstream (to quantities) and downstream (to prices) propagation of commodity prices for a sample of small commodity exporters. We then build a small open economy production network model (static and then a dynamic one) to rationalize our findings.

Key message: bilateral mkt shares are key to explaining the extensive margin of price adjustment, in response to oil price shocks, following the work of @mmorl89 and co-authors on the intensive margin of price changes.

Then, at Bocconi, our new working in progress on the origins of firm-to-firm price rigidity (joint work with @alvcastilloa @javier_turen and Luis Felipe Cespedes) only slides available for now

Had a great time presenting at the Lisbon Macro last week and at Bocconi today. Very good feedback on two papers we are working on. First, on the effects of early pension withdrawals in Australia (joint with @SHamiltonian, Tristam and Geoffrey)