@ruggieriale
Macroeconomist. Ramón y Cajal Research Fellow at IAE (@csic.es), previously @cunef.bsky.social and @uniofnottingham.bsky.social. PhD @uab.cat & @bsebarcelona.bsky.social. #FirstGen from #Abruzzo. www.alessandroruggieri.com
‼️Call for Papers: III Spanish Workshop on Development Economics
🌆 October 21-22nd at @fundacionareces.bsky.social dacionareces.bsky.social in Madrid!
⭐Wonderful keynote speakers: Sylvie Lambert and Raul Sanchez de la Sierra
📝Full papers/extended abstracts by June 15: spande.workshops@gmail.com.
Excited to host the next edition of the Spanish Macro Network
@cunef.bsky.social , 23rd-24th October '25. Link to submit (docs.google.com/forms/d/e/1F...). Deadline: 15th June '25. Send your best papers!
We test our theory using Portuguese administrative data. Completing insurance markets would increase aggregate productivity and income by 64% and 97%, respectively. (n/n)
Specifically, incomplete markets operate as correlated distortions, leading to a reallocation of capital from more to less productive firms relative to the complete markets benchmark. (4/n)
Incomplete markets tie entrepreneurs’ consumption to the profits generated by their enterprises, making them willing to forgo expected profits to reduce volatility. As a result, the expected MPK are not equalized across firms, i.e. capital is misallocated. (3/n)
In a recent working paper (papers.ssrn.com/sol3/papers....) we build a GE model where risk-averse entrepreneurs with heterogeneous productivity face uninsurable idiosyncratic output shocks and choose how much capital to rent before uncertainty unfolds. (2/n)
Resource misallocation is a key driver of aggregate productivity losses. Yet, what ultimately drives misallocation remains an open question. @tristany.bsky.social, D. Pietrobon and I argue that capital misallocation arises endogenously when insurance markets are incomplete. (1/n)
Did the EU Miracle (shorturl.at/Suv99) of the 2004 enlargement affect inequality?
It did!
According to @ruggieriale.bsky.social and Garcia-Louzao wage inequality went down in Lithuanian.
Once more, the EU makes lives better!
❤️❤️🇪🇺❤️❤️
Quantitatively, differences in the degree of monopsony account for 42% of observed variation in GDP per capita across countries. At least one-third of the losses are attributable to distorted entrepreneurial decisions and lack of innovation.
Because it penalises high-productivity employers, labor market power acts as a skill-biased force, similar to what has been shown for a wide array of size-dependent policies and correlated distortions.
Labor market power leads to aggregate output losses by 1) reallocating employment towards less-productive, lower-paying employers; 2) allowing low-productivity individuals to reap high benefits from entrepreneurship; and 3) lowering the returns from climbing the productivity ladder for employers.
The paper extends our paper with Nezih Guner (aeaweb.org/articles?id=...) to a dynamic setting with occupational choice, firm growth, and productivity-enhancing investment.
How does labor market monopsony affect firm dynamics and aggregate productivity? We answer this question in a new working paper, “Firm Dynamics, Monopsony, and Aggregate Productivity Differences”, written with Tancredi Rapone and
@tristany.bsky.social (alessandroruggieri.com/_files/ugd/1...)