A cutting-edge graduate-level textbook on the macroeconomics of international trade
Combining theoretical models and data in ways unimaginable just a few years ago, open …

We explore empirically models of aggregate fluctuations in which consumers form
anticipations about the future based on noisy sources of information and these anticipations …

Recent research on macroeconomic fluctuations in emerging economies has advocated
introducing a stochastic productivity trend or allowing for interest rate shocks and financial …

We measure the effects of debt dilution on sovereign default risk and study debt covenants
that could mitigate these effects. We calibrate a baseline model with endogenous debt …

Financial innovation and overconfidence about the risk of new financial products were key
factors behind the 2008 US credit crisis. We show that a model with a collateral constraint in …

Emissions trading systems and carbon taxes are two market‐based policy instruments for
responding to the climate change externality. This article focuses on the relationship …

We study fiscal rules using a sovereign default model. A debt-brake (spread-brake) rule
imposes a ceiling on the fiscal deficit when the sovereign debt (spread) is above a threshold …

Abstract The 2008 Global Financial Crisis, and the myriad other crises confronting
economies around the world, exposed the inadequacies of the Dynamic Stochastic General …

Emerging economies are characterized by higher variability of consumption and real wages
relative to output and a strongly countercyclical current account. A small open economy …

This paper studies how international investors' concerns about model misspecification affect
sovereign bond spreads. We develop a general equilibrium model of sovereign debt with …