Firm Dynamics in Macro-Finance: Tools and Applications
(July 6-10, 2020) at the CREI Macroeconomics Summer School.
Course Overview
The objective of this course is to present analytical and empirical applications on the relationship between financial frictions, firm dynamics, and their macroeconomic implications. We will place emphasis on the analytical tools necessary to solve and analyze firm dynamics models with frictions and misallocation, and on the empirical tools to test their predictions.
Selected tools and applications (both simulating the models as well as some empirical applications) will be illustrated in detail during practice sessions.
Selected Topics
About the Instructor
Andrea Caggese earned his PhD in Economics at the London School of Economics and Political Science in 2002. Currently he is an Associate Professor at Universitat Pompeu Fabra (UPF), an Affiliated Professor at Barcelona GSE, and a Research Associate at the Center for Research in International Economics (CREI). He is also the Director of the Master of Research in Economics, Finance and Management at the Department of Economics and Business at Universitat Pompeu Fabra (UPF). He was Awarded a Resercaixa Grant in 2014, and he has been a Visiting researcher at Boston University in 2015-2016. His work has appeared in the American Economic Journals: Macroeconomics, Journal of Financial Economics, the Journal of Monetary Economics, the Economic Journal and the Review of Economic Dynamics, among others. His research interests include Macro-Finance, Firm Dynamics, and Entrepreneurship and Innovation.
Selected Publications
(July 6-10, 2020) at the CREI Macroeconomics Summer School.
Course Overview
The objective of this course is to present analytical and empirical applications on the relationship between financial frictions, firm dynamics, and their macroeconomic implications. We will place emphasis on the analytical tools necessary to solve and analyze firm dynamics models with frictions and misallocation, and on the empirical tools to test their predictions.
Selected tools and applications (both simulating the models as well as some empirical applications) will be illustrated in detail during practice sessions.
Selected Topics
- Stylised facts on firm dynamics;
- Dispersion in productivity and misallocation of resources: measurement, theory, and aggregate implications.
- Financial frictions and firm dynamics.
- Innovation, reallocation, and growth
- Financial factors, and the misallocation of skilled labour and intangible capital.
- Finance, firm dynamics and the business cycle: empirical evidence and theory.
About the Instructor
Andrea Caggese earned his PhD in Economics at the London School of Economics and Political Science in 2002. Currently he is an Associate Professor at Universitat Pompeu Fabra (UPF), an Affiliated Professor at Barcelona GSE, and a Research Associate at the Center for Research in International Economics (CREI). He is also the Director of the Master of Research in Economics, Finance and Management at the Department of Economics and Business at Universitat Pompeu Fabra (UPF). He was Awarded a Resercaixa Grant in 2014, and he has been a Visiting researcher at Boston University in 2015-2016. His work has appeared in the American Economic Journals: Macroeconomics, Journal of Financial Economics, the Journal of Monetary Economics, the Economic Journal and the Review of Economic Dynamics, among others. His research interests include Macro-Finance, Firm Dynamics, and Entrepreneurship and Innovation.
Selected Publications
- "Financing Constraints, Radical versus Incremental Innovation, and Aggregate productivity", 2019, American Economic Journal: Macroeconomics, Vol 11, April 2019, 275-309.
- “Firing the Wrong Workers: Financing Constraints and Labor Misallocation”, (with Vicente Cunat and Daniel Metzger) Journal of Financial Economics, Vol. 133, Issue 3, September 2019, Pages 589-607.
- “Financing Constraints, Firm Dynamics, Export Decisions, and Aggregate Productivity”, (with V. Cuñat) Review of Economic Dynamics, 16(1), 177-193, 2013.
- “Entrepreneurial Risk, Investment and Innovation”, Journal of Financial Economics, 106(2), 287-307, 2012.
- “Financing Constraints and Fixed Term Employment Contracts”, (with V. Cuñat), Economic Journal, 118 (533), 2013-2046, 2008.