|Researchers:||Michael Donadelli, Alessandro Gioffré, Christian Schlag|
"Two central objects of interest in macroeconomics are the dynamics of economic growth and how economies interact internationally. Endogenous growth models and international macro models were designed to deal with these two issues separately. Recently asset prices and financial market dynamics have gained significant attention also in these areas of macroeconomics. Most broadly, with this project we aim at filling the still-existing gap in the sense that it is not clear how the characteristics of economic growth in one country affect the other country, how exchange rates and interest rates react to news about long-term economic growth prospects, and finally how financial markets in the two countries are linked. The objects of interest in this project are of course asset prices, but equally importantly the propagation of macroeconomic shocks, and the risk-sharing dynamics in a two-country endogenous growth model. The economy in each country can grow endogenously, but, since households in each country consume an aggregate of the home and foreign goods, there will be active risk sharing via imports and exports. The model is used to study how macroeconomic shocks in one country propagate to the other and how this transmission mechanism affects asset prices and risk sharing incentives as well as the exchange rate and the interest rate differential.
Within the project we have also examined the role of labor market dynamics in explaining business cylces and asset prices in single country endogneous growth growth model. Moreover, the welfare implications of sector-specific fiscal policies in the presence of heterogenous innovation structures have been studied."
|Michael Donadelli, Patrick Grüning||Labor Market Dynamics, Endogenous Growth and Asset Prices|
|Patrick Grüning||International Endogenous Growth, Macro Anomalies, and Asset Prices|
Journal of Economic Dynamics and Control
|2017||Financial Markets||Innovation, Technology spillover, Endogenous growth, Long-run risk, International finance|
|163||Giuliano Curatola, Michael Donadelli, Patrick Grüning||Technology Trade with Asymmetric Tax Regimes and Heterogeneous Labor Markets: Implications for Macro Quantities and Asset Prices||2017||Financial Markets||Technology Adoption, R&D Investment, Asymmetric Tax Regimes, Asset Prices|
|185||Patrick Grüning||Heterogeneity in the Internationalization of R&D: Implications for Anomalies in Finance and Macroeconomics||2017||Financial Markets||Heterogeneous innovation, Technology spillover, Endogenous growth, Creative destruction, International finance|