Documents de treball


  • Broadband Regulation: An Empirical Assessment

    Working Paper Series No. 05/07

    Jordi Gual, Sandra Jódar-Rosell
    • This paper provides an empirical assessment of the broadband policy of the European Union. In particular, we assess in more detail the effects of mandatory local loop unbundling on several market dimensions. We find that it has benefited broadband adoption through significant quality improvements. However, we also find that other regulatory features outside the scope of the new regulatory framework hinder broadband development in a significant manner.

  • European Telecoms Regulation: Past Performance and Prospects

    Working Paper Series No. 04/07

    Jordi Gual, Sandra Jódar-Rosell
    • This paper provides a review of the telecommunications policy of the Eu- ropean Union. We discuss the motivations for the Commission's regulatory choices and provide some evidence on their performance. We find that the outcome of the first regulatory period varied significantly between member states, reflecting the numerous implementation choices that were left at their consideration. The recent reform of the regulation addresses some of the past shortcomings, but still poses some risks for technological neutrality.

  • Non Tradable Goods and The Real Exchange Rate

    Working Paper Series No. 03/07

    Pau Rabanal, Vicente Tuesta
    • How important are nontradable goods and distribution costs to explain real exchange rate dynamics? We answer this question by estimating a gen- eral equilibrium model with intermediate and final tradable and nontrad- able goods. We obtain reasonable estimated parameter values using Bayesian methods, and find that the estimated model can match real exchange rate per- sistence and, to less extent, volatility. Nontradable sector technology shocks explain about one third of real exchange rate volatility. We present impulse responses to better understand the transmission mechanism of shocks in the open economy. We also show that in order to explain the low correlation between the ratio of relative consumption and the real exchange rates across countries, fiscal policy shocks are necessary in the model, in addition to tech- nology shocks.

  • Trade Patterns, Trade Balances and Idiosyncratic Shocks

    Working Paper Series No. 02/07

    Clàudia Canals, D.E. Weinstein, J. Vilarrubia, X. Gabaix
    • International Macroeconomics has long sought an explanation for current account fiuctuations that matches the data. The approaches have typically focused on better models and new macroeconomic variables. We demonstrate the limitations of this approach by showing that idiosyncratic shocks are an important cause of macroeconomic volatility even for large countries. When explaining these fiuctuations, standard macroeconomic models generally assume that firms are small and that their microeconomic shocks cancel out. We show that the high degree of concentration of bilateral trade fiows means that idiosyncratic shocks can have a significant impact on aggregate economic fiuctuations. We theoretically develop a decomposition of the variance of trade fiows into its macroeconomic and its microeconomic components. Taking the model to data on bilateral trade fiows from 1970 to 1997, we find that the most comprehensive macroeconomic model can only account for at most half of the observed variance in trade account volumes of each country. Thus, this paper highlights the importance of considering disaggregated data when modeling the current account.

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