In this work, we evaluate the exposure of Italian regions to the risk associated with the spread of COVID-19 through a two-step value chain approach. First, we estimate the degree of participation of Italian regions in a plurality of value chains linked to consumption, investment and exports. We...

Recent literature reaches contrasting conclusions on the ability of price/wage staggering models to generate output persistence. We derive fairly general results from a stylised log-linear model which encompasses most of the microfounded model of price/wage staggering. Our results highlight the...

Recent empirical evidence identifies investment shocks as key driving forces behind business cycle fluctuations. However, existing New Keynesian models emphasizing these shocks counterfactually imply a negative unconditional correlation between consumption growth and investment growth, a weak...