Papers by Marios Zachariadis
RePEc: Research Papers in Economics, Jun 1, 2016
RePEc: Research Papers in Economics, Feb 1, 2001
RePEc: Research Papers in Economics, 2010
RePEc: Research Papers in Economics, Dec 1, 2002
In the absense of free trade, domestic productivity will be a major determinant of prices. I cons... more In the absense of free trade, domestic productivity will be a major determinant of prices. I consider an empirical framework where an industry's R&D determines its productivity. Using repeated cross-sections of absolute prices of individual goods across European countries, I find that products of an industry tend to be cheaper in countries with higher stocks of R&D in that industry. I proceed to consider a model with two sectors: a non-R&D-performing service sector and a manufacturing sector whose R&D expenditures lead to productivity gains. Here, higher productivity for the R&D-intensive sector is associated with lower prices of manufactures and a higher price ratio of services to manufactures for the country. Indeed, the data shows that high productivity countries have lower prices for manufactures and, implicitly, higher services to manufactures price ratios. This implies that the overall price level will be lower in the more productive country as long as the size of the productive sector is sufficiently large.
Social Science Research Network, Feb 29, 2016
RePEc: Research Papers in Economics, 2017
Social Science Research Network, 2016
RePEc: Research Papers in Economics, Dec 1, 2002
I use U.S. manufacturing industry data to estimate a system of three equations implied by a model... more I use U.S. manufacturing industry data to estimate a system of three equations implied by a model of R&D-induced growth in steady state. These three equations relate R&D intensity to patenting, patenting to technological progress, and technological progress to economic growth. In each case, I find evidence of positive impact. Thus, I reject the null hypothesis that growth is not induced by R&D in favor of the Schumpeterian endogenous growth framework without scale effects. I also find strong support for technological spillovers from aggregate research intensity to industry-level innovation success.
Social Science Research Network, 2012
A number of recent papers point to the importance of distinguishing between the price reaction to... more A number of recent papers point to the importance of distinguishing between the price reaction to micro and macro shocks in order to reconcile the volatility of individual prices with the observed persistence of aggregate in ‡ation. We emphasize instead the importance of distinguishing between global and local shocks. We exploit a panel of 276 micro price levels collected on a semi-annual frequency from 1990 to 2010 across 88 cities in 59 countries around the world, that enables us to distinguish between di¤ erent types (local and global) of micro and macro shocks. The persistence associated with each of these components and its relation with volatility of the di¤erent components, provides a number of new facts. Prices respond more slowly to global shocks as compared to local ones-in particular, prices respond faster to local macro shocks than to global micro ones-implying that the relatively slow response of prices to macro shocks documented in recent studies comes from global rather than local sources. In addition, more volatility in local conditions leads to more persistent relative price distortions due to slower response of prices to global shocks, with this local-global link more than twice as large as the corresponding micro-macro link. Finally, global shocks account for half of the volatility in prices. Overall, our results imply that global shocks are important when analyzing price dynamics or assessing price-setting models.
Social Science Research Network, 2004
This paper evaluates various channels through which foreign technology diffuses to the manufactur... more This paper evaluates various channels through which foreign technology diffuses to the manufacturing sector of selected developing economies. These economies carry out very little (if any) own R&D so they rely on foreign technology to a much larger extent than developed economies. We investigate the direct effect of foreign R&D, as well as technology embodied in imports of intermediate and capital goods and foreign direct investment, on the growth of manufacturing total factor productivity and value added in 32 developing economies during the 1965-1992 period. We find that foreign R&D typically has the biggest positive impact on domestic productivity and value added growth. Imports of technology goods and foreign direct investment also play a similar positive role but their effect is of smaller magnitude and is not always significant.
RePEc: Research Papers in Economics, Feb 1, 2010
This paper considers the relation between immigration and prices for a large number of cities acr... more This paper considers the relation between immigration and prices for a large number of cities across the world over the period from 1990 to 2006. Aggregate immigration ratios are shown to have a negative impact on international relative prices. The evidence is consistent with demand-side and supply-side considerations both being relevant for the price-reducing effect of immigration, with the latter offering a more likely explanation at annual frequencies during this period. Our findings regarding the inverse relation of immigration and prices and the channels via which this operates across international cities, are broadly consistent wih Lach (2007) and Cortes (2008) who investigate the same relation within Israel and for the US respectively.
RePEc: Research Papers in Economics, 2020
RePEc: Research Papers in Economics, Jun 1, 2020
HAL (Le Centre pour la Communication Scientifique Directe), Jul 1, 2013
ABSTRACT We argue that education exerts positive external effects on health, beyond the standard ... more ABSTRACT We argue that education exerts positive external effects on health, beyond the standard internal effects documented in the literature. We implement an innovative approach to control for endogeneity and omitted variables problems, and present evidence for the significant role played by higher education in explaining longevity across countries. Our findings provide empirical evidence in support of our hypothesis of educational externalities on health.
RePEc: Research Papers in Economics, Feb 1, 2019
We investigate the impact of monetary policy shocks on firms' selling price and production expect... more We investigate the impact of monetary policy shocks on firms' selling price and production expectations utilizing a panel structural vector autoregressive (SVAR) model for ten euro-area economies for 1999:1 to 2018:6. To identify monetary policy shocks, we utilize narrative and high frequency instruments taking into account ECB announcements regarding its policy decisions. Our estimated impulse responses indicate that firms typically revise their expectations in a manner consistent with imperfect information theoretical settings, e.g., increasing their production and selling price expectations after an unanticipated interest rate hike. Interestingly, we observe an overshooting pattern where following the initial surprise that leads firms to raise (reduce) their production and selling expectations after an unanticipated interest rate hike (M1 expansion), firms gradually come to expect contractionary (expansionary) monetary policy shocks to eventually decrease (increase) production and then inflation, thus revise their expectations accordingly by decreasing (increasing) first their production expectations and then their selling price expectations in accordance with this learning experience over time.
RePEc: Research Papers in Economics, 2019
We assess the impact of monetary and fiscal policy shocks on US survey-based macroeconomic expect... more We assess the impact of monetary and fiscal policy shocks on US survey-based macroeconomic expectations elicited from consumers and financial experts, within and outside low-debt states of the world. While we fail to detect a clear response to shocks in a linear model, our analysis reveals a number of state-dependent patterns. The response of consumers' expectations to the monetary and fiscal shocks we jointly consider is evident outside states of low debt but not within states of low debt where we observe little action. In particular, contractionary monetary policy shocks induce pessimistic macroeconomic expectations outside the low-debt state but not within it, suggesting that the fiscal burden matters in how monetary policy affects expectations. Furthermore, consumer expectations' responses more closely resemble those of experts outside the low-debt state, in line with consumers becoming more attentive to monetary developments when the stakes are high. Overall, our findings are in line with rationally inattentive consumers not paying attention to shocks occurring when the fiscal burden is low.
Empirical Economics, Sep 14, 2018
The paper investigates the process of European integration using Law of One Price (LOP) deviation... more The paper investigates the process of European integration using Law of One Price (LOP) deviations for a large number of individual goods and services during the recent Crisis. We find that the degree of integration of Eurozone economies continued to increase during this period. Importantly, we trace the location of individual goods in the distribution of LOP deviations so as to understand how price advantage or disadvantage has evolved or persisted during the Crisis. We find that rigidities rendering prices in some markets higher persisted during the same period. Thus, while well-deserved policy emphasis has been placed by the Eurozone on correcting fiscal imbalances and on monetary policy to address the resulting deflationary bias, our work suggests that little has been done in practice to break structural rigidities in goods and services markets during the period under study. Finally, comparing the distributions of LOP deviations for each of the Eurozone economies, we show that to the extent that there was adjustment for some of these economies this did not occur via the same channels for all Eurozone countries, suggesting different non-tradeables and tradeables adjustment mechanisms being in place in different countries.
We consider multiple sources of non-linearity at the same time within a structural model that acc... more We consider multiple sources of non-linearity at the same time within a structural model that accounts for previously omitted variables and allows estimation of product-level convergence rates both within and outside the band of no trade. Accounting for the role of theoretically-implied variables and their non-linear interactions in the convergence process, we find that goodlevel convergence rates are systematically faster as compared to convergence estimates from reduced-form models. Contrary to conventional wisdom, we find that good-level price differentials exhibit mean-reverting behavior even within the bands of no trade, and that rates of mean-reversion within or outside the no-trade band are strongly related to goods' economics characteristics. Furthermore, while implied trade costs dramatically increase as we move from within country comparisons to comparisons across countries, inconsistent with our priors services have somewhat comparable trade costs to tradable goods. Finally, wage differentials are negatively associated with the speed of price adjustment and this effect is stronger for city pairs that are farther apart.
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Papers by Marios Zachariadis