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

David Preinerstorfer awarded the 2022 Wetrems Prize

23 December 2022

Congratulations to our ECARES colleague and friend David Preinerstorfer who on December 17 received the 2022 Wetrems Prize for Mathematics and Physics awarded by the Classe des Sciences of the Royal Academy of Belgium.

See more details

Inflation : la récession économique guette l’Europe

23 December 2022

Avec une augmentation du coût de la vie jamais vue en 50 ans, le portefeuille des Belges se porte mal en cette fin d’année. Bram De Rock revient sur les événements qui ont provoqué cette inflation record, et les conséquences sur le pouvoir d’achat des ménages.

See more details

‘Het succes heeft China verblind en arrogant gemaakt’

29 November 2022

Begraaf het idee dat internationale handel autocratieën helpt te liberaliseren. ‘China is uitgegroeid tot een frankensteinregime. En Rusland stevent af op een bloedig intern conflict’, zegt de Belg Gérard Roland, een wereldautoriteit in de evolutie van voormalige planeconomieën.

Read more
See more news