We estimate the macroeconomic effects of defence expenditure using 30 years of Spanish defence procurement data. Effects take time to materialize due to implementation lags, become sizable, but are transitory. ➡️ www.bde.es/wbe/en/publi... #bdeResearch

How do mergers affect productivity and markups across the economy? Tracking 3,759 Spanish mergers from 1997 to 2022, we find average increases of 2% and 4%. Productivity gains are broad-based across industries; markup increases are concentrated in a few. ➡️ www.bde.es/wbe/en/publi... #bdeResearch

Why did the dollar weaken while long-term Treasury yields rose after the April 2025 U.S. tariff announcements? We show the episode reflected several distinct macro-financial shocks rather than a single tariff shock, identified using heteroskedasticity. ➡️ www.bde.es/wbe/en/publi...
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