Daniele Terlizzese

Banca d'Italia
Via Nazionale 91
Roma 00136 ITALY

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NBER Working Papers and Publications

September 2003The Output Composition Puzzle: A Difference in the Monetary Transmission Mechanism in the Euro Area and U.S.
with Ignazio Angeloni, Anil K. Kashyap, Benoit Mojon: w9985
We revisit recent evidence on how monetary policy affects output and prices in the U.S. and in the euro area. The response patterns to a shift in monetary policy are similar in most respects, but differ noticeably as to the composition of output changes. In the euro area investment is the predominant driver of output changes, while in the U.S. consumption shifts are significantly more important. We dub this difference the output composition puzzle and explore its implications and several potential explanations for it. While the evidence seems to point at differences in consumption responses, rather than investment, as the proximate cause for this fact, the source of the consumption difference remains a puzzle.

Published: Angeloni, Ignazio, Anil K. Kashyap, Benoit Mojon and Daniele Terlizzese. "The Output Composition Puzzle: A Difference In The Monetary Transmission Mechanism In The Euro Area And The United States," Journal of Money, Credit and Banking, 2003, v35(6,Dec), 1265-1306.

Monetary Transmission in the Euro Area: Does the Interest Rate Channel Explain it All?
with Ignazio Angeloni, Anil K. Kashyap, Benoit Mojon: w9984
Drawing on recent Eurosystem research that uses a range of econometric techniques and a number of new data sets, we propose a comprehensive description of how monetary policy affects the euro area economy. We focus mainly on three questions: (1) what are the stylized facts concerning the transmission of monetary policy for the area as a whole and for individual countries? (2) can the classic' interest rate channel (IRC) alone, without capital market imperfections, explain these facts? (3) if not, is the bank lending channel a likely candidate to complete the story? We find plausible euro-area wide monetary policy responses for prices and output that are similar to those generally reported for the U.S. However, investment (relative to consumption) seems to play a larger role in euro area m...


December 1993Dissaving by the Elderly, Transfer Motives and Liquidity Constraints
with Albert Ando, Luigi Guiso: w4569
Two explanations have been proposed for the observed slowness of wealth decumulation by the elderly in the literature: the precautionary saving induced by (uninsurable) uncertainty about the time of death or by the possibility of major catastrophes in old age that require large outlays; the desire to pass part of the accumulated assets on to one's heirs. We reconsider the issue of wealth decumulation by the elderly and assess the presence of a transfer motive, drawing on Italian data. We show that if intergenerational transfer of assets takes place well before the time of death, induced for instance by existence of liquidity constraints on younger families, then tests for the presence of a transfer motive based on the relative speed of decumulation of elderly households with and without...

Published: Ando, Albert, Luigi Guiso, and Ignazio Visco (eds.) Saving and the accumulation of wealth: Essays on Italian household and government saving behavior. Cambridge; New York and Melbourne: Cambridge University Press, 1994.

October 1991Younger Households Saving: Evidence From Japan and Italy
with Albert Ando, Luigi Guiso, Daniel Dorsainvil: w3871
Both young and old consumers appear to dissave too little for their behaviour to be consistent with a strict life cycle model. We concentrate on young households and document their behaviour drawing from Italian and Japanese data. We also provide a theoretical set-up which can account for the observed fact without relying on assumptions about the working of credit markets or the degree of foresight of consumers.

Published: Scandinavian Journal of Economics, Vol. 2, (1991).

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