Does information help recovering structural shocks from past observations?

This paper asks two questions. First, can we detect empirically whether the shocks recovered from the estimates of a structural VAR are truly structural Second, can the problem of nonfundamentalness be solved by considering additional information? The answer to the first question is “yes” and that to the second is “under some conditions”. JEL Classification: C32, C33, E00, E32, O3C33, E00, E32, JEL Classification: C32, O3

Asset prices, debt constraints and inefficiency

In this paper, we consider economies with (possibly endogenous) solvency constraints under uncertainty. Constrained ine±ciency corresponds to a feasible redistribution yielding a welfare improvement beginning from ev- ery contingency reached by the economy. A sort of Cass Criterion (Cass [10]) completely characterizes constrained ine±ciency. This criterion involves only observable prices and requires low interest rates in the long-run, exactly as in economies with overlapping generations. In addition, when quantitative limits to liabilities arise from participation constraints, a feasible welfare im- provement, subject to participation, coincides with the introduced notion of constrained ine±ciency.Private debt; solvency constraints; default; Cass Criterion; asset

Does information help recovering fundamental structural shocks from past observations?

This paper asks two questions. First, can we detect empirically whether the shocks recovered from the estimates of a structural VAR are fundamental? Second, can the problem of non-fundamentalness be solved by considering additional information? The answer to the firrst question is 'yes' and that to the second is 'under some conditions'.

Trends and cycles in the euro area: how much heterogeneity and should we worry about it?

Not so much and we should not, at least not yet. JEL Classification: E32, C33, C53, F2, F43euro area, European Integration, Income Insurance, International Business Cycles, Risk Sharing

Trends and cycles in the Euro Area: how much heterogeneity and should we worry about it?

Not so much and we should not, at least not yet.International Business Cycles, Euro Area, Risk Sharing, European Integration, Income Insurance.