Young Economist best paper award for Marco Luca Pinchetti

February 5 2019

Marco Luca Pinchetti has been awarded the Young Economist Best Paper Award at the 6th Workshop in Macro Banking and Finance.

His paper entitled “Creative Destruction Cycles: Schumpeterian Growth in an Estimated DSGE Model” can be found here

Abstract: In this paper I incorporate a Schumpeterian mechanism of creative destruction in a standard DSGE framework. In the model, a sector of forward-looking profit maximizing innovators determines the economy’s TFP growth rate. I estimate the model with Bayesian methods, and show that models featuring an endogenous TFP channel can empirically outperform models that exhibit standard, exogenous productivity dynamics. The paper provides a comprehensive comparative assessment of the impact of the endogenous TFP channel in an estimated fully-fledged DSGE model. The variance decomposition analysis shows that endogenous TFP is a powerful channel of transmission of adverse shocks throughout the business cycle. The estimates suggest that the 35% of the productivity growth rate fluctuations had endogenous origins during the Great Recession.

Latest News

Post-Doctoral Research Manager with background in Micro-economics

22 April 2021

We offer a part-time or full-time contract starting July 1, 2021 (flexible starting date) until April 30, 2023.

See more details

Chocs transitoires, effets permanents

26 February 2021

Une guerre civile ne s’arrête pas quand les armes se taisent. Est-ce que cela s’applique aussi à la crise du Covid-19 ? Philip Verwimp, February 13, 2021

See more details

15 February 2021

André Sapir has been appointed as member to the High-Level Advisory Group on the main economic and social challenges the European economy will face in the post-Covid environment. The 8-member Group will advise the European Commissioner for the Economy, Paolo Gentiloni, on issues that include: the medium- to long-term impact of the Covid-19 pandemic on …

See more details
See more news