Structural reforms in DSGE models: Output gains but welfare losses

Published in Economic Modelling, with Benoît Campagne. This publication is a minor update of a discussion paper. Highlights: In DSGE models, structural reforms transmit through consumption/leisure trade-offs. The size of gains strongly depends on the definition and calibration of utility. Output-enhancing reforms are not always welfare-improving. Product market reforms reduce inequalities. Labour market reforms are …

Iterative solutions for structural gravity models in panels

Published in International Economics, major update of Ecfin discussion paper on gravity models In this paper: I shed new light on the structural gravity model based on a parallel with the Input-Output literature. I propose iterative solutions to control for multilateral resistance terms in structural gravity models which. nests the standard Poisson Pseudo Maximum Likelihood estimator …

A general weighted least squares approach for the projection of Input-Output tables

published in Economic Systems Research, companion code In the context of input–output analysis, it is often necessary to update a matrix for a date when only the sum of its columns and rows are known. This projection problem is quite similar to temporal disaggregation. I borrow from this literature a class of solutions for which …

The Taylor principle is valid under wage stickiness

with Alexis Blasselle Published in B.E. Journal of Macroeconomics, see also my PhD dissertation. A 2010 version  is published as École Polytechnique working paper or in HAL We consider the textbook neo-Keynesian model with staggered prices and wages in discrete time. We prove analytically that the Taylor principle holds in this case. When both contracts …

The Chow-Lin method extended to dynamic models with autocorrelated residuals

Published in Journal of Time Series Econometrics, major update of Insee working paper, I provide a closed-form solution to temporal disaggregation or interpolation models which is both general in terms of dynamic structure of the model (lags of the high-frequency variable) and flexible in terms of autocorrelation of its residual. As for static models, I …

Households Satellite Account for France: Methodological issues on the assessment of domestic production

with Delphine Roy Published as Insee working paper, and in the Review of Income and Wealth We estimate in a household satellite account (HHSA) the value of French domestic production in 2010 and 1998, using the input method and following Eurostat's recommendations. In line with previous studies, we find that extending the system of national …