Suchergebnisse

We estimate a two-country Dynamic Stochastic General Equilibrium model for the US and the euro area including relevant housing market features and examine the monetary policy implications of housing-related disturbances. In particular, we derive the optimal monetary policy cooperation consistent with the structural specification of the model. Our estimation results reinforce the existing evidence on the role of housing and mortgage markets for the US and provide new evidence on the importance of the collateral channel in the euro area. Moreover, we document the various implications of credit frictions for the propagation of macroeconomic disturbances and the conduct of monetary policy. We find that allowing for some degree of monetary policy response to fluctuations in the price of residential goods improves the empirical fit of the model and is consistent with the main features of optimal monetary policy response to housing-related shocks.

SUMMARY
This paper quantifies the macroeconomic effects of three major structural reforms (i.e. service sector liberalizations, incentives to innovation and civil justice reforms) undertaken in Italy in the last decade. We employ a novel approach that estimates the impact of each reform on total factor productivity (TFP) and markups in an empirical micro setting and uses these estimates in a dynamic general equilibrium model to simulate the macroeconomic effects of the reforms. Microeconometric estimates indicate that the reforms imply a sizeable increase in TFP and a reduction in service markup. Structural model–based analysis shows that, accounting for estimation uncertainty, the increase in the level of GDP at the end of the current decade would be between 3.5% and 8%, with non-negligible effects on the labour market.

We assess the effects of competition‐friendly reforms on the zero lower bound (ZLB) on the monetary policy rate in a monetary union, using a dynamic general equilibrium model calibrated to two regions within the euro area (EA) and the rest of the world.Reforms simultaneously implemented in the entire EA favor an earlier exit from the ZLB if they generate sufficient short‐run inflationary effects. This happens if capital accumulation increases, magnifying the expansionary effects of reforms on permanent income and, thus, short‐run aggregate demand. If investment does not increase, the effects are not sufficient to reduce the ZLB duration.