This paper studies the role of government expenditure in shaping inflation dynamics via the lens of the Phillips curve. We estimate the Phillips curve implied from a structural New Keynesian model that incorporates government expenditure using aggregate US data. Our estimation results based on...

Since the 1990s, China's real estate market has experienced a dramatic and long-lasting boom across China. This boom has led to substantial concerns in both academic and policy circles that the rising housing prices might have developed into a gigantic housing bubble, which might eventually...

This paper measures the output and TFP costs of sovereign risk incorporating its impact on firm-level intangible investment. Combining Italian aggregate and firm-level data, we show that firms reduced their investment and reallocated resources away from intangible assets and towards tangible...