Research

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

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Comments on missing growth from creative destruction by Aghion,Bergeaud, Boppart, Klenow and Li

The purpose of (Aghion, Bergeaud, Boppart, Klenow, & Li, 2017) (hereafter ABBKL) is to identify a wedge between the true economic growth and the one measured in practice. The approach of the authors is to identify the true growth in a theoretical model with creative destruction and compare it to a model for the actual … Continue reading Comments on missing growth from creative destruction by Aghion,Bergeaud, Boppart, Klenow and Li

Accounting for technology, trade and final consumption in employment : an Input-Output decomposition

available as Insee working paper, with Mathilde Pak What are the driving forces of changes in employment in France over the last thirty years and how can we explain skill-biased changes in employment? Based on Input-Output analysis we provide a decomposition of changes in employment between the contributions of three channels : technology, trade and … Continue reading Accounting for technology, trade and final consumption in employment : an Input-Output decomposition

Solving for structural gravity in panels: yes we can

Published as DG ECFIN working paper, r&r International Economics Structural gravity models for trade stem from agnostic models of bilateral trade flows. Although more theoretically sound, they are much more complex to estimate. This difficulty is due to the multilateral resistance terms which account for the general equilibrium constraints of global trade and must be … Continue reading Solving for structural gravity in panels: yes we can

Structural reforms in DSGE models: a case for sensitivity analyses

available as Insee working paper, with Benoît Campagne. Under review Journal of Policy modeling. In a standard DSGE model of the Euro Area derived from the Smets and Wouters' core model and comparable to most institutional models (ECB, EC, IMF, etc.), we shed new light on a popular exercise: pro-competitive (structural) reforms evaluation. First, we … Continue reading Structural reforms in DSGE models: a case for sensitivity analyses

Laffer curves and fiscal multipliers: lessons from Mélèze model

available as Insee working paper, with Benoît Campagne We use the two country DSGE model of the Euro area Meleze developed at Insee to perform ex ante fiscal reforms evaluations. The main features of the model compare with standard tools developed in international institutions and central banks. In practice, tax rates are below the government … Continue reading Laffer curves and fiscal multipliers: lessons from Mélèze model

MELEZE: A DSGE model for France within the Euro Area

available as Insee working paper, with Benoît Campagne MELEZE, standing for Modèle économique linéarisé d'équilibre en zone euro (linearised economic model of equilibrium in the euro area), is a new Keynesian DSGE model with the following characteristics: France and the rest of the Euro area form a monetary union; they are populated by infinitely lived … Continue reading MELEZE: A DSGE model for France within the Euro Area

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 … Continue reading The Taylor principle is valid under wage stickiness

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