• Austerity 

      Dellas, Harris; Niepelt, Dirk (2014-11-19)
      We shed light on the function, properties and optimal size of austerity using the standard sovereign model augmented to include incomplete information about credit risk. Austerity is defined as the shortfall of consumption ...
    • Measuring Sovereign Contagion in Europe 

      Caporin, Massimiliano; Pelizzon, Loriana; Ravazzolo, Francesco; Rigobon, Roberto (2015-04-01)
      This paper analyzes sovereign risk shift-contagion, i.e. positive and significant changes in the propagation mechanisms, using bond yield spreads for the major eurozone countries. By emphasizing the use of two econometric ...
    • Rent-Seeking in Elite Networks 

      Haselmann, Rainer; Schoenherr, David; Vig, Vikrant (2017-01-31)
      We employ a unique dataset on members of an elite service club in Germany to investigate how social connections in elite networks affect the allocation of resources. Specifically, we investigate credit allocation decisions ...
    • Saving Europe?: The Unpleasant Arithmetic of Fiscal Austerity in Integrated Economies 

      Mendoza, Enrique G.; Tesar, Linda L.; Zhang, Jing (2014-12-12)
      Europe’s debt crisis casts doubt on the effectiveness of fiscal austerity in highly-integrated economies. Closed-economy models overestimate its effectiveness, because they underestimate tax-base elasticities and ignore ...