Professor, Department of Economics, London School of Economics.
Co-Director, Review of Economic Studies Ltd.
Chair, Royal Economic Society's Women in Economics Committee
Member of the Editorial Board, Review of Economic Studies
Council Member of the Royal Economic Society
Programme Leader, CfM
Research Associate, CEP
Research Fellow, CEPR
Curriculum Vitae (pdf)
Ph.D., Harvard University, 2002. (Advisors: A. Alesina, R. Barro--chair, K. Rogoff.)
M.A., Harvard University, 1999.
A.B., Universidad Nacional de Tucuman, Argentina, 1997.
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Published and Forthcoming Academic Papers
Hot and Cold Seasons
in the Housing Market
Joint with Rachel Ngai. Forthcoming The American Economic Review, 2014.
Estimating the Extensive
Margin of Trade
Joint with J.M.C. Santos Silva and Kehai Wei. Forthcoming Journal of International Economics 2014.
Trading Partners and Trading Flows: Implementing
the Helpman-Melitz-Rubinstein Model Empirically
Joint with J.M.C. Santos Silva. Forthcoming Oxford Bulletin of Economics and Statistics 2014.
models for non-negative data with many zeros,
Joint with J.M.C. Santos Silva and Frank Windmeijer. Forthcoming Journal of Econometric Methods, 2014
Patterns and Monetary Policy: International Evidence
Joint with Giovanni Olivei. Journal of Monetary Economics, October 2010, Volume 57, Issue 7. Pages 785-802
*Data discussion: microeconomic evidence of wage rigidity in the United States, Europe, and Japan.
Currency Unions in
Prospect and Retrospect
Joint with J.M.C. Santos Silva. Annual Review of Economics, September 2010, Volume 2, Pages 51-74.
Supplemental Appendix to "Currency Unions in Prospect and Retrospect"
On the Existence of the
Estimates for Poisson Regression
Joint with J.M.C. Santos Silva. Economics Letters, May 2010, Volume 107, Issue 2. Pages 310-312.
The Timing of Monetary
Joint with Giovanni Olivei. The American Economic Review, June 2007, Vol
Joint with Miklos Koren. The Quarterly Journal of Economics, February 2007, Volume 122, No. 1: 243-287.
On the Trade Impact of Nominal Exchange Rate Volatility
Journal of Development Economics, March 2007, Volume 82, No. 2: 485-508
The Log of
Joint with J.M.C. Santos Silva. The Review of Economics and Statistics, November 2006, Volume 88, No. 4: 641-658.
circulated as Gravity-Defying Trade; FRB Boston Series, paper no.
For other questions, data, and codes, please, check the paper's page here
Closed and Open Economy
Models of Marked Up and Sticky Prices
Joint with Robert Barro. The Economic Journal, April 2006, Vol. 116, No. 511: 434-456.
Economic Effects of
Joint with Robert Barro. Economic Inquiry, January 2007, Vol. 45, No. 1: 1-197.
Is Poland the Next
Joint with Francesco Caselli. NBER International Seminar on Macroeconomics; R. Clarida, J. Frankel, and F. Giavazzi, editors, 2004.
Optimal Currency Areas
Joint with Alberto Alesina and Robert Barro. NBER Macroeconomics Annual, Mark Gertler and Kenneth Rogoff, eds. Cambridge, MA: MIT Press, 2002.
Chapter 31: Currency Unions, in Gerard Caprio Jr. (ed.), The
Evidence and Impact of Financial Globalization, Academic Press: San Diego,
Pages 451-461, 2013.
Joint with J.M.C. Santos Silva.
Diversification and Development in the Gulf Cooperation Council Countries
Joint with Miklos Koren. The Transformation of the Gulf: Politics, Economics and the Global Order, David Held and Kristian Ulrichsen, eds. 2011.
Some Convergence Issues
Joint with J.M.C. Santos Silva. The Stata Journal, 2011, Vol. 11 No. 2: 207-212.
Trade, revise and resubmit, Quarterly
Journal of Economics
Joint with Francesco Caselli, Miklos Koren, and Milan Lisicky
Abstract: Existing wisdom links increased openness to trade to greater macroeconomic volatility, as trade induces a country to specialize, increasing its exposure to sector-specific shocks. Evidence suggests, however, that country-wide shocks are at least as important as sectoral shocks in shaping volatility patterns. We argue that if country-wide shocks are dominant, the impact of trade on volatility can be negative, because trade becomes a source of diversification. For example, trade allows domestic goods producers to respond to shocks to the domestic supply chain by shifting sourcing abroad. Similarly, when a country has multiple trading partners, a domestic recession or a recession in any one of the trading partners translates into a smaller demand shock for its producers than when trade is more limited. Using a calibrated version of the Eaton-Kortum and Alvarez-Lucas model, we quantitatively assess the impact of lower trade barriers on volatility since the 1970s in a broad group of countries.
Pushing on a String: US
Monetary Policy is Less Powerful in Recessions, accepted for publication,
American Economic Journal: Macroeconomics
Joint with Gregory Thwaites
Abstract: We estimate the impulse response of key US macro series to the monetary policy shocks identified by Romer and Romer (2004), allowing the response to depend flexibly on the state of the business cycle. We find strong evidence that the effects of monetary policy on real and nominal variables are more powerful in expansions than in recessions. The magnitude of the difference is particularly large in durables expenditure and business investment. The effect is not attributable to differences in the response of fiscal variables or the external finance premium. We find some evidence that contractionary policy shocks have more powerful effects than expansionary shocks. But contractionary shocks have not been more common in booms, so this asymmetry cannot explain our main finding.
Data Set used in "Pushing on a String": Extended Series of Romer and Romer's shocks 1969-2007 by Thwaites and Tenreyro.
Joint with Tiloka De-Silva
Abstract: A vast literature has sought to explain large cross-country differences in fertility rates. Income, mortality, urbanization, and female labour force participation, among other socioeconomic variables, have been suggested as explanatory factors for the differences. This paper points out that cross-country differences in fertility rates have fallen very rapidly over the past four decades, with most countries converging to a rate just above two children per woman. This absolute convergence took place despite the limited (or absent) absolute convergence in other economic variables. The rapid decline in fertility rates taking place in developing economies stands in sharp contrast with the slow decline experienced earlier by more mature economies. The preferred number of children has also fallen, suggesting a shift to a small-family norm. The convergence to replacement rates will lead to a stable world population, reducing environmental concerns over explosive population growth. In this paper we explore existing explanations and bring in an additional factor influencing fertility rates: the population programs started in the 1960s, which, we argue, have accelerated the global decline in fertility rates over the past four decades.
The Transmission of
Monetary Policy Operations through Redistributions and Durable Purchases
Joint with Vincent Sterk
Abstract: The central explanation for how monetary policy transmits to the real economy relies critically on nominal rigidities, which form the basis of the New Keynesian (NK) framework. This paper studies a different transmission mechanism that operates even in the absence of nominal rigidities. We show that in an OLG setting, standard open market operations (OMO) carried by central banks have important revaluation effects that alter the level and distribution of wealth and the incentives to work and save for retirement. Specifically, expansionary OMO lead households to front-load their purchases of durable goods and work and save more, thus generating a temporary boom in durables, followed by a bust. The mechanism can account for the empirical responses of key macroeconomic variables to monetary policy interventions. Moreover, the model implies that different monetary interventions (e.g., OMO versus helicopter drops) can have different qualitative effects on activity. The mechanism can thus complement the NK paradigm. We study an extension of the model incorporating labor market frictions.
On Brexit (in
Joint with V. Rappoport
The Argentine Debt Crisis in Retrospect
Some loud thoughts on Argentina, the IMF, Greece...
Reply to "The Log of
Joint with J.M.C. Santos-Silva, January 2009
For other questions, data, and codes, please, check the Log-of-Gravity page here
Selected Comments and Discussions
Does Finance Benefit Society? by Luigi Zingales. Banque de France, Paris 2015
Insider Outsider Labour Markets, Hysteresis and Monetary Policy, by Jordi Gali. Oxford 2015.
Specialization Patterns in International Trade, by Walter Steingress. London 2015.
Small and Large Price Changes and the Propagation of Shocks, by Fernando Alvarez, Francesco Lippi, and Herbe Le Bihan. Fondation Banque de France, Paris 2014.
Segmented Housing Markets, by Monika Piazzesi, Martin Schneider, and Johannes Stroebel. LBS, London 2013.
Macroeconomic Performance during Commodity Prices Booms, by Luis Cespedes and Andres Velasco, IMF Res conference, Istanbul 2012.
Economic Integration and Structural Change, by Jean Imbs and Romain Wacziarg, CEPR, Paris 2012.
Non-uniform Wage Staggering: European Evidence and Monetary Policy Implications, by Julliard, Le Bihan, and Millard, 2011.
Low Interest Rates and Housing Booms: the Role of Capital Inflows, Monetary Policy and Financial Innovation, by Filipa Sa, Pascal Towbin and Tomasz Wieladek. LBS, London 2011.
International Differences in Fiscal Policy, by Agustin Benetrix and Philip Lane. NBER TAPES conference, 2010.
From Great Depression to Great Credit Crisis: Similarities, Differences and Lessons, by Miguel Alumnia, Agustin Benetrix, Barry Eichengreen, Patrick O'Rourke and Gisella Rua, 2010. Forthcoming in Economic Policy.
Subprime-Related Losses and Board In-Competence: Private vs. Public Banks in Germany, by Harald Hau and Marcel Thum, 2009. Forthcoming in Economic Policy.
Productivity and the Dollar, by Giancarlo Corsetti, Luca Dedola, and Sylvain Leduc. ESSIM, Izmir 2007.
Do Exports Generate Higher
Productivity? Evidence from Slovenia, by Jan DeLoecker. CEPR, Alghero 2004.
Globalization and Inflation,
by Natalie Chen, Jean Imbs, and Andrew Scott. CEPR, Rome 2003.
Exchange Rate Volatility and the Composition of Trade,
by Christian Broda and
John Romalis. Federal Reserve Bank, 2003.
Effect of Common Currencies on International Trade: A Meta-Analysis, by Andy
Rose. Harvard, Cambridge MA 2002.
Excellence in Refereeing Award, American Economic Review 2013
American Economic Journal, American Economic Review, Canadian Journal of Economics,
Economic Journal, Economics of Transition, Empirical
Economics, European Economic Review, European Journal of Political Economy,
Fiscal Studies, International Economic Review, IMF Staff Papers,
of Applied Economics, Journal of Development Economics, Journal of Economic Dynamics and
Control, Journal of the European Economic
Association, Journal of International Economics, Journal of International
Journal of International Trade and Development, Journal of Monetary Economics,
Journal of Political Economy,
National Science Foundation, Oxford Bulletin of Economics and Statistics, Quarterly Journal of
Economics, Review of Economics and Statistics,
Review of Economic Studies,
Review of International Economics.
Teaching Timetable 2012-13
EC442 (Macroeconomics for Ph.D. students). Lectures: Tuesdays 2.30-5.30. LT.
EC475 (Quantitative Economics). Lectures: Mondays 16:00-18:00. Classes: Mondays 10:30-11:30. MT.
EC532 (International Economics). Tuesdays 9:30-12:30. MT.