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Author:Santacreu, Ana Maria 

Working Paper
Reaction functions in a small open economy: What role for non-traded inflation?

I develop a structural general equilibrium model and estimate it for New Zealand using Bayesian techniques. The estimated model considers a monetary policy regime where the central bank targets overall inflation but is also concerned about output, exchange rate movements, and interest rate smoothing. Taking the posterior mean of the estimated parameters as representing the characteristics of the New Zealand economy, I compare the consequences that two alternative reaction functions have on the central bank's loss, for different specifications of its preferences. I obtain conditions under ...
Working Papers , Paper 2014-44

Understanding the Net International Investment Position

The U.S. NIIP is the difference between U.S.-owned foreign assets and foreign-owned U.S. assets. Why has the NIIP become more negative in recent years?
On the Economy

Working Paper
International technology Diffusion: A Gravity Approach

This paper investigates, empirically, the determinants of international technology diffusion. To do that, I set up a multi-country model of innovation and diffusion with perfect enforcement of intellectual property rights (IPR). The model yields a gravity equation for bilateral royalty payments that is estimated using methods from empirical trade. I investigate discrepancies between model’s predictions and observed royalty payments to identify the role of fundamentals vs. other factors such as imperfect IPR protection. Fundamentals account for most of the variation in royalty payments, ...
Working Papers , Paper 2019-031

Protectionism and Dependence on Imports of Essential Medical Equipment

The COVID-19 global pandemic has led to a surge in protectionism, which poses challenges to countries dependent on imports of essential medical equipment.
On the Economy

China’s Role in Global Innovation Is Changing

This blog post looks at China’s transition from technology absorber to innovation leader and exporter of technologies in sectors dominated by advanced economies.
On the Economy

Discussion Paper
Understanding Trade Fragmentation

A large empirical literature, including Gopinath et al. (2025), finds that geopolitical distance has become an increasingly important determinant of bilateral trade flows. This work has fueled debate about the consequences of fragmentation and the extent to which global value chains are being reshaped.
FEDS Notes , Paper 2025-12-12

Journal Article
Rethinking Global Value Chains During COVID-19: Part 1

GVCs can make final goods production less costly and more efficient, but they are not without risks.
Economic Synopses , Issue 16 , Pages 1-2

Working Paper
International Trade of Essential Goods During a Pandemic

This paper studies the role of international trade of essential goods during a pandemic. We consider a multi-country, multi-sector model with essential and non-essential goods. Essential goods provide utility relative to a reference consumption level, and a pandemic consists of an increase in this reference level. Each country produces domestic varieties of both types of goods using capital and labor subject to sectoral adjustment costs, and all varieties are traded internationally subject to trade barriers. We study the role of international trade of essential goods in mitigating or ...
Working Papers , Paper 2020-010

Working Paper
International Technology Licensing, Intellectual Property Rights, and Tax Havens

This paper investigates the determinants of international technology licensing using data for 61 countries during 1995-2012. A multi-country model of innovation and diffusion with international technology licensing yields a structural gravity equation for royalty payments as a function of fundamentals. The gravity equation is estimated using nonlinear methods. The model’s fundamentals account for 45% of the variation in royalty payments. Other factors such as imperfect IPR protection and tax havens account for a substantial fraction of the unexplained variation. A back-of-the-envelope ...
Working Papers , Paper 2019-031

Working Paper
Cross-border Patenting, Globalization, and Development

We build a stylized model that captures the relationships between cross-border patenting, globalization, and development. Our theory delivers a gravity equation for cross-border patents. To test the model’s predictions, we compile a new dataset that tracks patents within and between countries and industries, for 1980-2019. The econometric analysis reveals a strong, positive impact of policy and globalization on cross-border patent flows, especially from North to South. A counterfactual welfare analysis suggests that the increase in patent flows from North to South has benefited both ...
Working Papers , Paper 2023-031

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