Working papers

This paper documents five stylised facts relating to price adjustment in the euro area, using various micro price datasets collected in a period with relatively low and stable inflation.

This paper analyzes the impact of changes in energy prices on the competitiveness of manufacturing firms in Chile. We find that, (i) increases in energy prices generally do not hurt firm competitiveness; (ii) the impact of energy prices depends on the fuel type—while electricity price increases are negatively correlated with firm outcomes, fossil fuel price increases have a positive association with investment and firm productivity; (iii) these effects are heterogeneous and vary by firm attributes such as size, ownership and location; (iv) the positive correlation between fossil fuel price increases and capital upgrading is particularly pronounced when energy prices are at relatively low levels.

This paper develops the NICE (National Impacts of Circular Economy) tool, which is based on the Eora input-output data to analyse how technical cooperation projects, which are aimed at more sustainable use of materials, affect economic and social indicators. Whereas the long-term transition towards a circular economy and a more efficient economic system is less controversial, the results of this study help deepen the understanding of the possible short-term impacts, especially for countries struggling to climb the ladder of development. Strategic implications for a reconciliation of economic, social and environmental targets for inclusive and sustainable industrial development and a full accomplishment of the SDG 9 are presented.

We propose a new single deflation method to expand real value added data coverage for INDSTAT. Our approach enables us to derive an extensive data set with notably higher data coverage vis-a-vis other large cross-country data sets, particularly for low(er) income economies. This allows us to measure the performance of the manufacturing sector in unprecedented detail and accuracy.

Energy subsidy reforms can raise important challenges for firms. A large academic literature has evolved to study these effects. This paper provides a summary of that literature and recommendations for future evaluations of policy impacts

In this paper we revisit the busy debate over the relationship between volatility and growth.

Using higher frequency financial data from exchange-traded fund assets, we find stark differences in terms of impact on green vs wider macroeconomic investment. In a period of monetary tightening, the cumulative returns on green investment vis-a-vis wider investment instruments drop back sharply, suggesting the need for mitigating measures to protect the sector from undue economic damage during times of financial stress.

This paper proposes a new method to test for regime-dependent Granger causality in a cross-sectionally dependent panel data setting using vector autoregressive (VAR) models and seemingly unrelated regressions (SUR).