| Session | 2023 | |||||||||
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| Submission Date | 02/18/2023 | |||||||||
| Room | 6: Dublin - FIAP | |||||||||
| Date | 07/18/2023 | |||||||||
| Time | 02:00 PM | |||||||||
| Title of Session | Topics in Macroeconomics | |||||||||
| Organizer | Anne Villamil | |||||||||
| Organizer's Email Address | Email hidden; Javascript is required. | |||||||||
| Organizer's Affiliation | University of Iowa | |||||||||
| Organizer's Country | USA | |||||||||
| Second Organizer Details | ||||||||||
| Chairperson | Anne Villamil | |||||||||
| Number of Presenters | 4 | |||||||||
| Presenter #1 | ||||||||||
| Name | António Antunes | |||||||||
| Email hidden; Javascript is required. | ||||||||||
| Affiliation | Banco de Portugal | |||||||||
| Country | Portugal | |||||||||
| Title of Paper | Living under a pandemic threat | |||||||||
| Abstract | TBA | |||||||||
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| Presenter #2 | ||||||||||
| Name | Zhigang Feng | |||||||||
| Email hidden; Javascript is required. | ||||||||||
| Affiliation | University of Nebraska | |||||||||
| Country | USA | |||||||||
| Title of Paper | Political cycles and the US economy | |||||||||
| Abstract | TBA | |||||||||
| Presenter #3 | ||||||||||
| Name | Jacek Rothert | |||||||||
| Email hidden; Javascript is required. | ||||||||||
| Affiliation | US Naval Academy | |||||||||
| Country | USA | |||||||||
| Title of Paper | Foreign Direct Investment over the International Business Cycle | |||||||||
| Abstract | Among the G7 economies, gross foreign direct investment (FDI) positions are very large, averaging 100% of GDP and dwarfing the absolute values of net FDI positions in most countries. Additionally, inward and outward FDI flows exhibit robust, positive correlation over the business cycle. To understand these stylized facts on gross FDI flows, we extend the standard international business cycle (IBC) model to allow domestic and foreign ownership of physical capital to be imperfect substitutes. We estimate the elasticity of substitution using the co-movement of gross FDI flows, and find it to be less than 2.5 - a value much smaller than the implicitly assumed infinite elasticity in the IBC literature. Our results uncover a new source of welfare gains from openness to FDI among otherwise identical, developed economies -- a capital diversity channel, akin to product variety in trade models. The channel is quantitatively important -- openness to FDI in the model yields welfare gains equivalent to about a 4-5% increase in life-time consumption. | |||||||||
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| Presenter #4 | ||||||||||
| Name | Clemente Pinilla Torremocha | |||||||||
| Email hidden; Javascript is required. | ||||||||||
| Affiliation | Universidad de Alicante | |||||||||
| Country | Spain | |||||||||
| Title of Paper | The Effect of News Shocks on Unemployment Fluctuations: The Case of Europe | |||||||||
| Abstract | We argue that aggregated surveys of future production, employment, and state of the economy - made to firms and households - contain information in the form of news about the labor market. News are identified by augmenting the identification scheme of Beaudry and Portier (2006). For a panel of 22 European countries, we find that labor market news shocks explain unemployment, especially in the medium/long run, accounting for about 65\% of its long-run variance. Positive news about the labor market are followed by an increase in the number of job vacancies. In other words, identified news shocks are Granger-causal for job vacancies. Finally, we enrich a baseline real business cycle (RBC) model with search and matching frictions on the labor market under internal rationality and news shocks, that are helpful to reproducing the empirical responses. | |||||||||
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SAET
Society for the Advancement of Economic Theory
Society for the Advancement of Economic Theory