RSSE: Rustam Jamilov (University of Oxford) The Regional Keynesian Cross

V rámci Research Seminar Series in Economics máme tu čest, že nám ve čtvrtek 15.12.2022 od 12:45 do 14:15 v místnosti RB437 bude o svém výzkumu přednášet Dr. Rustam Jamilov (University of Oxford). Téma přednášky je "The Regional Keynesian Cross".

BIO: Rustam is currently a Postdoctoral research fellow at All Souls College and an associate member of the economics department, University of Oxford. He got his PhD from the London Business School and MS from the London School of Economics. His fields of expertise are macroeconomics and financial economics. He is also interested in cybersecurity, monetary economics, and asset pricing.

Abstract: “We study empirically, theoretically, and quantitatively the monetary transmission mechanism in space. In a standard monetary union, aggregate shocks should have homogeneous effects across regions. Empirically, we find substantial heterogeneity in the regional effects of U.S. monetary policy. We identify two key drivers of this heterogeneity: local industrial composition and household wealth. County-level employment responses to identified monetary shocks are greater when (i) the local share of non-tradables is higher and (ii) local wealth is lower. We then develop an equilibrium model of a monetary union with two-layered regional heterogeneity in the share of non-tradable activity (technology) and of hand-to-mouth households (preferences). We derive a general spatial variant of the canonical Keynesian cross representation with MPCs and regional multipliers as reduced-form functions of micro parameters. We capture a novel demand-supply complementarity which arises through the equilibrium interplay of heterogeneity in preferences and technology. We provide evidence of this complementarity in the data and quantitatively show that it materially affects the monetary transmission mechanism”