This study tests the importance of Ricardian technology differences for international trade. The empirical analysis has three comparative advantages: including emerging and advanced economies, isolating panel variation regarding the link between productivity and exports, and exploiting heterogeneous technology diffusion from immigrant communities in the United States for identification. The lat...

In models with a representative infinitely lived household, modern versions of tax smoothing imply that the steady-state of government debt should follow a random walk. This is unlikely to be the case in OLG economies, where, the equilibrium interest rate may differ from the policy-maker’s rate of time preference such that it may be optimal to reduce debt today to reduce distortionary taxation ...

The main issue raised in this note is the nonequivalence between the infinitehorizon model where agents are infinitely lived and the successive generations model with altruistic finitely lived agents: in the presence of a nonnegative bequest requirement, endowment heterogeneity imposes a revision of the acritical adoption of the infinitely lived agent representation in modern macro-economics. B...

This paper analyzes the transmission of fiscal policy shocks in economies at different degrees of integration into global goods markets. First, using a quantitative business cycle model, we show that trade integration (measured by openness) does not alter the effects of government spending on output, but mutes the negative impact of government spending shocks on private demand. In fact, for ver...

I study a class of macroeconomic models in which all firms can costlessly choose any price at each date from an interval (indexed to last period's level) that includes positive lower bound. prove three results are valid for such half‐closed (regardless how near zero the left endpoint is). First, given output sequence is uniformly bounded above by moneyless equilibrium level, outcome (possibly t...