In this paper I show that the intensity at which intermediate goods are used in the production process affects aggregate total factor productivity (TFP). To do this, I construct an input–output model economy in which firms produce gross output by means of a production function in capital,...

Housing prices diverge from construction prices after 1997 in four major countries. Besides, total-factor productivity (TFP) differences between construction and the general economy account for the evolution of construction prices in the US and Germany, but not in the UK and Spain.

I show that an input-output production structure reinforces persistence in the pricing behavior of firms using a Calvo mechanism. In particular, the optimal price today depends upon the expected optimal prices in the infinite future and those set in the infinite past. It follows that the effect...

Article originally published in the volume 60 issue 241 of BNL Quarterly Review (also known as BNL Quarterly Review).

Article originally published in the volume 60 issue 241 of Banca Nazionale del Lavoro Quarterly Review (also known as BNL Quarterly Review).

I construct a two-sector growth model to study the effect of the structural transformation between manufacturing and services on the decline in GDP volatility in the US. In the model, a change in the relative size of the two sectors affects the transmission mechanism that relates sectoral TFP...

We document the twin crisis that affected Spain in the mid-1860s. First, we trace back its origins to the international crisis of 1864-66. Next, we describe the particular banking sector of Spain, characterized by the coexistence of the Bank of Spain with multiple local banks of issue. We...