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Ghironi, Fabio

Overview
Works: 33 works in 146 publications in 3 languages and 782 library holdings
Classifications: HB172.5, 339
Publication Timeline
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Publications about Fabio Ghironi
Publications by Fabio Ghironi
Most widely held works by Fabio Ghironi
The valuation channel of external adjustment by Fabio Ghironi( Computer File )
17 editions published between 2007 and 2009 in English and held by 223 libraries worldwide
International financial integration has greatly increased the scope for changes in a country's net foreign asset position through the valuation channel, namely capital gains and losses on external assets and liabilities. We examine this valuation channel in a dynamic equilibrium portfolio model with international trade in equity. By separating asset prices and quantities, we can characterize the first-order dynamics of valuation effects and the current account in macroeconomic dynamics. Specifically, we disentangle the roles of excess returns, capital gains, and portfolio adjustment for consumption risk sharing when financial markets are incomplete
International trade and macroeconomic dynamics with heterogeneous firms by Fabio Ghironi( Book )
11 editions published in 2004 in English and held by 85 libraries worldwide
"We develop a stochastic, general equilibrium, two-country model of trade and macroeconomic dynamics. Productivity differs across individual, monopolistically competitive firms in each country. Firms face a sunk entry cost in the domestic market and both fixed and per-unit export costs. Only relatively more productive firms export. Exogenous shocks to aggregate productivity and entry or trade costs induce firms to enter and exit both their domestic and export markets, thus altering the composition of consumption baskets across countries over time. In a world of flexible prices, our model generates endogenously persistent deviations from PPP that would not exist absent our microeconomic structure with heterogeneous firms. It provides an endogenous, microfounded explanation for a Harrod-Balassa-Samuelson effect in response to aggregate productivity differentials and deregulation. Finally, the model successfully matches several moments of U.S. and international business cycles"--National Bureau of Economic Research web site
Optimal monetary policy with endogenous entry and product variety by Florin Ovidiu Bilbiie( file )
13 editions published in 2011 in English and held by 58 libraries worldwide
We show that deviations from long-run stability of product prices are optimal in the presence of endogenous producer entry and product variety in a sticky-price model with monopolistic competition in which price stability would be optimal in the absence of entry. Specifically, a long-run positive (negative) rate of inflation is optimal when the benefit of variety to consumers falls short of (exceeds) the market incentives for creating that variety under flexible prices, governed by the desired markup. Plausible preference specifications and parameter values justify a long-run inflation rate of two percent or higher. Price indexation implies even larger deviations from long-run price stability. However, price stability (around this non-zero trend) is close to optimal in the short run, even in the presence of time-varying flexible-price markups that distort the allocation of resources across time and states. The central bank uses its leverage over real activity in the long run, but not in the short run. Our results point to the need for continued empirical research on the determinants of markups and investigation of the benefit of product variety to consumers
Endogenous entry, product variety, and business cycles by Florin Ovidiu Bilbiie( file )
9 editions published between 2007 and 2011 in English and held by 51 libraries worldwide
This paper builds a framework for the analysis of macroeconomic fluctuations that incorporates the endogenous determination of the number of producers over the business cycle. Economic expansions induce higher entry rates by prospective entrants subject to irreversible investment costs. The sluggish response of the number of producers (due to the sunk entry costs) generates a new and potentially important endogenous propagation mechanism for real business cycle models. The stock-market price of investment (corresponding to the creation of new productive units) determines household saving decisions, producer entry, and the allocation of labor across sectors. The model performs at least as well as the benchmark real business cycle model with respect to the implied second-moment properties of key macroeconomic aggregates. In addition, our framework jointly predicts a procyclical number of producers and procyclical profits even for preference specifications that imply countercyclical markups. When we include physical capital, the model can reproduce the variance and autocorrelation of GDP found in the data
Monetary policy and business cycles with endogenous entry and product variety by Florin Ovidiu Bilbiie( file )
5 editions published in 2007 in English and held by 47 libraries worldwide
This paper studies the role of endogenous producer entry and product creation for monetary policy analysis and business cycle dynamics in a general equilibrium model with imperfect price adjustment. Optimal monetary policy stabilizes product prices, but lets the consumer price index vary to accommodate changes in the number of available products. The free entry condition links the price of equity (the value of products) with marginal cost and markups, and hence with inflation dynamics. No-arbitrage between bonds and equity links the expected return on shares, and thus the financing of product creation, with the return on bonds, affected by monetary policy via interest rate setting. This new channel of monetary policy transmission through asset prices restores the Taylor Principle in the presence of capital accumulation (in the form of new production lines) and forward-looking interest rate setting, unlike in models with traditional physical capital. We also study the implications of endogenous variety for the New Keynesian Phillips curve and business cycle dynamics more generally, and we document the effects of technology, deregulation, and monetary policy shocks, as well as the second moment properties of our model, by means of numerical examples
Optimal fiscal policy with endogenous product variety by Sanjay K Chugh( file )
5 editions published in 2011 in English and held by 36 libraries worldwide
We study Ramsey-optimal fiscal policy in an economy in which product varieties are the result of forward-looking investment decisions by firms. There are two main results. First, depending on the particular form of variety aggregation in preferences, firms' dividend payments may be either subsidized or taxed in the long run. This policy balances monopoly incentives for product creation with consumers' welfare benefit of product variety. In the most empirically relevant form of variety aggregation, socially efficient outcomes entail a substantial tax on dividend income, removing the incentive for over-accumulation of capital, which takes the form of variety. Second, optimal policy induces dramatically smaller, but efficient, fluctuations of both capital and labor markets than in a calibrated exogenous policy. Decentralization requires zero intertemporal distortions and constant static distortions over the cycle. The results relate to Ramsey theory, which we show by developing welfare-relevant concepts of efficiency that take into account product creation
The domestic and international effects of interstate U.S. banking by Fabio Ghironi( Computer File )
5 editions published in 2010 in English and held by 35 libraries worldwide
This paper studies the domestic and international effects of the transition to an interstate banking system implemented by the U.S. since the late 1970s in a dynamic, stochastic, general equilibrium model with endogenous producer entry. Interstate banking reduces the degree of local monopoly power of financial intermediaries. We show that the an economy that implements this form of deregulation experiences increased producer entry, real exchange rate appreciation, and a current account deficit. The rest of the world experiences a long-run increase in GDP and consumption. Less monopoly power in financial intermediation results in less volatile business creation, reduced markup countercyclicality, and weaker substitution effects in labor supply in response to productivity shocks. Bank market integration thus contributes to a moderation of firm-level and aggregate output volatility. In turn, trade and financial ties between the two countries in our model allow also the foreign economy to enjoy lower GDP volatility in most scenarios we consider. The results of the model are consistent with features of the U.S. and international business cycle after the U.S. began its transition to interstate banking
Market deregulation and optimal monetary policy in a monetary union by Matteo Cacciatore( Computer File )
8 editions published in 2013 in English and held by 33 libraries worldwide
The wave of crises that began in 2008 reheated the debate on market deregulation as a tool to improve economic performance. This paper addresses the consequences of increased flexibility in goods and labor markets for the conduct of monetary policy in a monetary union. We model a two-country monetary union with endogenous product creation, labor market frictions, and price and wage rigidities. Regulation affects producer entry costs, employment protection, and unemployment benefits. We first characterize optimal monetary policy when regulation is high in both countries and show that the Ramsey allocation requires significant departures from price stability both in the long run and over the business cycle. Welfare gains from the Ramsey-optimal policy are sizable. Second, we show that the adjustment to market reform requires expansionary policy to reduce transition costs. Third, deregulation reduces static and dynamic inefficiencies, making price stability more desirable. International synchronization of reforms can eliminate policy tradeoffs generated by asymmetric deregulation
Monetary rules for emerging market economies by Fabio Ghironi( Book )
6 editions published in 2002 in English and held by 32 libraries worldwide
We compare the performance of a currency board, inflation targeting, and dollarization in a small, open developing economy with a liberalized capital account. We focus on the transmission of shocks to currency and country risk premia and on the role of fluctuations in premia in the propagation of other shocks. We calibrate our model on Argentina. The framework matches the second moments of key variables well. Welfare analysis suggests that dollarization is preferable to alternative regimes because it removes currency premium volatility. However, a currency board can match dollarization on welfare grounds if the central bank holds a sufficiently large stock of foreign reserves
Monopoly power and endogenouse product variety distortions and remedies by Florin Ovidiu Bilbiie( file )
5 editions published in 2008 in English and held by 32 libraries worldwide
We study the efficiency properties of a dynamic, stochastic, general equilibrium, macroeconomic model with monopolistic competition and firm entry subject to sunk costs, a time-to-build lag, and exogenous risk of firm destruction. Under inelastic labor supply and linearity of production in labor, the market economy is efficient if and only if symmetric, homothetic preferences are of the C.E.S. form studied by Dixit and Stiglitz (1977). Otherwise, efficiency is restored by properly designed sales, entry, or asset trade subsidies (or taxes) that induce markup synchronization across time and states, and align the consumer surplus and profit destruction effects of firm entry. When labor supply is elastic, heterogeneity in markups across consumption and leisure introduces an additional distortion. Efficiency is then restored by subsidizing labor at a rate equal to the markup in the market for goods. Our results highlight the importance of preserving the optimal amount of monopoly profits in economies in which firm entry is costly. Inducing marginal cost pricing restores efficiency only when the required sales subsidies are financed with the optimal split of lump-sum taxation between households and firms
How will transatlantic policy interactions change with the advent of EMU? by Barry J Eichengreen( Book )
8 editions published in 1997 in English and held by 29 libraries worldwide
Net foreign asset position and consumption dynamics in the international economy by Fabio Ghironi( Book )
5 editions published in 2005 in English and held by 27 libraries worldwide
We examine the effect of non-zero, long-run foreign asset positions on consumption dynamics in response to productivity shocks in a two-country, dynamic, general equilibrium model, with different discount factors across countries populated by overlapping generations of households. We then compare the model results to those of a VAR for the United States versus the rest of the G-7. In the data, we find that permanent worldwide productivity shocks lead to net foreign asset and consumption dynamics that are consistent with interpreting the United States as the impatient economy in our model and are not consistent with symmetric models with equal discount factors
Out in the sunshine? : outsiders, insiders and the United States in 1998 by Fabio Ghironi( Book )
8 editions published in 1997 in English and held by 25 libraries worldwide
Equity sales and manager efficiency across firms and the business cycle by Fabio Ghironi( Book )
3 editions published in 2011 in English and held by 14 libraries worldwide
"Smaller firms sell more equity in response to expansions than do larger firms. Also, consumption is more pro-cyclical for high income groups than others. In this paper, we present a model that captures key features of both of these patterns found in recent empirical studies. Managers own firms with unique differentiated products and can sell ownership in these firms. Equity sales require paying consulting fees, but the resulting scrutiny also make firms more efficient. We find four main results: (1) Equity sales are pro-cyclical since the benefits of efficient production outweigh the consulting fees during a boom. (2) Equity shares in smaller firms are more pro-cyclical because expansions make previously solely-owned firms to seek outside equity financing. (3) Households must absorb the increased equity sales by managers, thereby affecting their consumption response relative to managers. (4) Greater underlying managerial inefficiency induces more firms to seek outside advice and ownership in equilibrium. As a result, the cyclical impact on efficiency is mitigated by outside ownership."
European monetary unification : the challenges ahead by Barry J Eichengreen( Book )
6 editions published in 1995 in English and held by 9 libraries worldwide
European monetary unification and international monetary cooperation by Barry J Eichengreen( Book )
3 editions published in 1997 in English and held by 9 libraries worldwide
Does it matter (for equilibrium determinacy) what price index the central bank targets? by Charles T Carlstrom( Book )
2 editions published in 2002 in English and held by 4 libraries worldwide
Union monétaire européenne et coopération monétaire internationale by Barry J Eichengreen( Article )
3 editions published in 1997 in French and held by 4 libraries worldwide
L'article rappelle que la réalisation prochaine de l'Union économique et monétaire (UEM) en Europe va rendre la coopération monétaire internationale plus nécessaire, en particulier entre l'Europe et les Etats-Unis. L'approche suivie réunit deux grands thèmes des travaux existants: l'un touche à la redéfinition inévitable du rôle des institutions de cette coopération monétaire internationale, et l'autre à l'importance et aux moyens de dégager le consensus en matière de politique économique. L'analyse, qui propose diverses mesures de nature à encourager la création d'institutions et le consensus aussi bien à l'intérieur de l'Europe qu'au niveau transatlantique, souligne cependant les difficultés de la coopération internationale dans les domaines concernés.--SCAD summary
The valuation channel of external adjustment by Fabio Ghironi( Computer File )
3 editions published in 2009 in English and held by 4 libraries worldwide
International financial integration has greatly increased the scope for changes in a country's net foreign asset position through the "valuation channel" of external adjustment, namely capital gains and losses on the country's external assets and liabilities. We examine this valuation channel theoretically in a dynamic equilibrium portfolio model with international trade in equity that encompasses complete and incomplete asset market scenarios. By separating asset prices and quantities in the definition of net foreign assets, we can characterize the first-order dynamics of both valuation effects and net foreign equity holdings. Firstorder excess returns are unanticipated and i.i.d. in our model, but capital gains and losses on equity positions feature persistent, anticipated dynamics in response to productivity shocks. The separation of prices and quantities in net foreign assets also enables us to characterize fully the role of capital gains and losses versus the current account in the dynamics of macroeconomic aggregates. Specifically, we disentangle the roles of excess returns, capital gains, and portfolio adjustment for consumption risk sharing when financial markets are incomplete, showing how these different channels contribute to dampening (or amplifying) the impact response of the cross-country consumption differential to shocks and to keeping it constant in subsequent periods. -- current account ; equity ; net foreign assets ; risk sharing ; valuation
Macroeconomics : theory, performance, and policy by Robert E Hall( Book )
2 editions published in 1995 in Italian and held by 4 libraries worldwide
Ben shu yi quan xin de jie gou gai gua le dang qian hong guan jing ji xue de zui xin fa zhan, nei rong feng fu xie zuo feng ge tong su, sheng dong
 
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Languages
English (122)
French (3)
Italian (2)
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