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Ghironi, Fabio

Overview
Works: 42 works in 210 publications in 2 languages and 1,156 library holdings
Roles: Author
Classifications: HB1, 330.072
Publication Timeline
Key
Publications about Fabio Ghironi
Publications by Fabio Ghironi
Most widely held works by Fabio Ghironi
Monetary policy and business cycles with endogenous entry and product variety by Florin Ovidiu Bilbiie( Book )
42 editions published between 2007 and 2016 in English and held by 91 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
International trade and macroeconomic dynamics with heterogeneous firms by Fabio Ghironi( Book )
16 editions published in 2004 in English and held by 56 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
The valuation channel of external adjustment by Fabio Ghironi( Book )
28 editions published between 2006 and 2015 in English and held by 40 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 consum
How will transatlantic policy interactions change with the advent of EMU? by Barry J Eichengreen( Book )
6 editions published in 1997 in English and held by 30 libraries worldwide
Out in the sunshine? : outsiders, insiders and the United States in 1998 by Fabio Ghironi( Book )
9 editions published between 1996 and 1997 in English and held by 27 libraries worldwide
Monetary rules for emerging market economies by Fabio Ghironi( Book )
6 editions published in 2002 in English and held by 20 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
Market deregulation and optimal monetary policy in a monetary union by Matteo Cacciatore( Book )
11 editions published in 2013 in English and held by 14 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 -- National Bureau of Economic Research web site
Equity sales and manager efficiency across firms and the business cycle by Fabio Ghironi( Book )
4 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."
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 12 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
Optimal fiscal policy with endogenous product variety by Sanjay K Chugh( Book )
10 editions published between 2011 and 2015 in English and held by 12 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
European monetary unification : the challenges ahead by Barry J Eichengreen( Book )
7 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 8 libraries worldwide
US-EC policy interactions in a post-EMU setting : a positive approach by Fabio Ghironi( Book )
4 editions published between 1993 and 1994 in English and held by 7 libraries worldwide
Union monétaire européenne et coopération monétaire internationale by Barry J Eichengreen( Article )
4 editions published in 1997 in French and held by 5 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 domestic and international effects of interstate U.S. banking by Matteo Cacciatore( Book )
6 editions published in 2014 in English and held by 4 libraries worldwide
This paper studies the domestic and international effects of national bank market integration in a two-country, dynamic, stochastic, general equilibrium model with endogenous producer entry. Integration of banking across localities reduces the degree of local monopoly power of financial intermediaries. The economy that implements this form of deregulation experiences increased producer entry, real exchange rate appreciation, and a current account deficit. The foreign economy 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 moderation of firm-level and aggregate output volatility. In turn, trade and financial ties allow also the foreign economy to enjoy lower GDP volatility in most scenarios we consider. These results are consistent with features of U.S. and international fluctuations after the United States began its transition to interstate banking in the late 1970s
Short-term pain for long-term gain market deregulation and monetary policy in small open economies by Matteo Cacciatore( Book )
7 editions published in 2015 in English and held by 4 libraries worldwide
This paper explores the effects of labor and product market reforms in a New Keynesian, small open economy model with labor market frictions and endogenous producer entry. We show that it takes time for reforms to pay off, typically at least a couple of years. This is partly because the benefits materialize through firm entry and increased hiring, both of which are gradual processes, while any reform-driven layoffs are immediate. Some reforms-such as reductions in employment protection-increase unemployment temporarily. Implementing a broad package of labor and product market reforms minimizes transition costs. Importantly, reforms do not have noticeable deflationary effects, suggesting that the inability of monetary policy to deliver large interest rate cuts in their aftermath-either because of the zero bound on policy rates or because of membership in a monetary union-may not be a relevant obstacle to reform. Alternative simple monetary policy rules do not have a large effect on transition costs
The Domestic and International Effects of Interstate U.S. Banking by Fabio Ghironi( Book )
8 editions published in 2010 in English and held by 4 libraries worldwide
Abstract: 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 reforms in the time of imbalance by Matteo Cacciatore( Book )
5 editions published in 2016 in English and held by 2 libraries worldwide
We study the consequences of product and labor market reforms in a two-country model with endogenous producer entry and labor market frictions. We focus on the role of business cycle conditions and external constraints at the time of reform implementation (or of a credible commitment to it) in shaping the dynamic effects of such policies. Product market reform is modeled as a reduction in entry costs and takes place in a non-traded sector that produces services used as input in manufacturing production. Labor market reform is modeled as a reduction in firing costs and/or unemployment benefits. We find that business cycle conditions at the time of deregulation significantly affect adjustment. A reduction of firing costs entails larger and more persistent adverse short-run effects on employment and output when implemented in a recession. By contrast, a reduction in unemployment benefits boosts employment and output by more in a recession compared to normal times. The impact of product market reforms is less sensitive to business cycle conditions. Credible announcements about future reforms induce sizable short-run dynamics, regardless of whether the announcement takes place in normal times or during an economic downturn. Whether the immediate effect is expansionary or contractionary varies across reforms. Finally, lack of access to international lending in the wake of reform can amplify the costs of adjustment
 
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English (177)
French (4)
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