Stefano D ' Addona's research while affiliated with The American University of Rome and other places

Publications (3)

Article
This study addresses the role of floating exchange rates as shock absorbers when trade involves previously traded goods (intensive margin) as well as new goods and previously non-traded goods (extensive margin). In a panel VAR model of 23 developed economies, we first document that adjustment to real shocks occurs mainly at the extensive margin and...
Conference Paper
Full-text available
This paper studies the dynamics of output and export margins in the aftermath of external shocks in fixed and floating exchange rate regimes. Using a panel VARX model, it traces the mean responses of output, terms of trade, extensive and intensive margins to real and nominal shocks in 22 developed economies over the period 1988-2011. It finds remar...
Article
Full-text available
This paper studies how trade margins respond to output and terms of trade shocks in different exchange rate regimes within a panel of 23 OECD economies over the period 1988-2011. Using a panel VAR model, we confirm the predic-tions of entry models about the behaviour of export margins over the cycle. In addition, we find remarkable differences depe...

Citations

... This section provides VAR evidence on the dynamics of export margins in response to external shocks, contrasting the transmission mechanism in fixed and floating regimes. In earlier work (Cavallari and D'Addona 2015;Cavallari and D'Addona 2017), we have focused on the shock absorption properties of flexible exchange rates by considering the dynamics of output and trade margins in the wake of, respectively, shocks to the terms of trade of a country and shocks to global demand factors. In both cases flexible rates are found to stabilize output by reducing the response of the extensive margin. ...
... Thus, the LSDV method is also likely to suit our monthly panel data in each of the three phases. Although Nickell (1981) emphasizes the inconsistency of an LSDV given a dynamic model with small T, this problem can be corrected as T grows (Cavallari and D'Addona 2015). Concerning our sample, the time dimension characterized by the monthly panel data is relatively large enough for the LSDV estimator. ...
... Decision and policy making in research management must take into account research field heterogeneity. Given concerns about the feedback and interdependency, a panel vector autoregressive model with exogenous variable (PVARX) is employed (Canova andCiccarelli 2013, Cavallari andD'Addona 2014). The PVARX model is estimated for each faculty aiming to underline the existing inter-faculty heterogeneity. ...