Simone Lenzu

Assistant Prof of Finance @nyuniversity @NewYorkFed. PhD @UChicago. Finance/Macro/Productivity/Spatial Econ. 🇮🇹 from Sardinia, finoallafine @JuventusFC

[Simone Lenzu @SimoneLenzu]

Recent @FT coverage of my research on #AI and central banking. @hakyungkim_

FT link (link to paper in the FT article)
https://t.co/SFANEDyQ3o

Related Liberty Street post:
https://t.co/CDvlmBQ3XO

[Simone Lenzu @SimoneLenzu]

Congrats @t_holden . Great paper!

[Tom Holden @t_holden]

Not something I ever imagined I'd see!

[Simone Lenzu @SimoneLenzu]

Our model, estimated to match the reduced-form estimates, suggests the second effect dominates, so the aggregate (!) gains are greatest if the plant opens in a well-developed regions.

More in the paper!
https://t.co/CoBWFZoLbV

[Simone Lenzu @SimoneLenzu]

Economists have long hypothesized that firm’s spatial proximity may generate productivity spillovers. How large are externalities & how broad is their reach?

New insights in our new ECMA paper: role of firms’ plant-level networks & industrial policy 🚨 #econtwitter @ecmaEditors

[Simone Lenzu @SimoneLenzu]

On the other hand, due to global knowledge sharing, the impact on the rest of the economy is greater if the plant opens in a well-developed region, which is connected to other regions through plant-level (knowledge-sharing) networks.

[Econometrica @ecmaEditors]

Econometrica Volume 92, Issue 5 (September 2024) is now online
https://t.co/SYXNfx90nd

[Luca Gagliardone @lucagaglia]

The presentation is on Wednesday, July 10 at 12:00. Thanks for reading and looking forward to seeing you there!

14/14

[Luca Gagliardone @lucagaglia]

Finally, we propose a “Nonlinear Calvo model” embedding nonlinearities in a tractable framework. Combines Caballero-Engel's inflation formula, quadratic hazard function, Calvo-like reset price equation.

It has an analytical solution for inflation!

12/14

[Luca Gagliardone @lucagaglia]

Quantitative exercise: Construct a measure of aggregate marginal cost and feed it into the model as a sequence of impulse responses.

The menu-cost model captures well both amplitude and cyclicality of inflation, in both high and low inflation regimes.

10/14

[Luca Gagliardone @lucagaglia]

Micro fact #3) At the firm level, prices are nonlinear in reset gaps, leading to a steeper slope of the NKPC when the distribution of gaps shifts.

8/14