nep-mac New Economics Papers
on Macroeconomics
Issue of 2006‒07‒15
99 papers chosen by
Soumitra K Mallick
Indian Institute of Social Welfare and Bussiness Management
  1. Optimising Microfoundations for Inflation Persistence By Richard Mash
  2. Oil Price Shocks, Monetary Policy Rules and Welfare. By Fiorella de Fiore
  3. Multi-Sectoral Cascading and Price Dynamics - A Bayesian Econometric Evaluation By Alejandro Justiniano
  4. The term structure of inflation risk premia and macroeconomic dynamics By Peter Hördahl
  5. Monetary Policy and the Term Structure of Interest Rates By Federico Ravenna
  6. Macroeconomic Models and the Yield Curve By Sean Holly; Jagjit Chadha
  7. Labor Taxation, Matching and Shocks in the New Keynesian Model By Juuso Vanhala; University of Helsinki
  8. Monetary Policy Switch, the Taylor Curve, and the Great Moderation By Efrem Castelnuovo
  9. The relative importance of Term Spread, Policy Inertia and Persistent Monetary Policy Shocks in Monetary Policy Rules By Ramón Maria-Dolores; Jesus Vazquez
  10. Optimal Monetary Policy Response to Distortionary Tax Changes By Michael Krause
  11. Time-Varying U.S. Inflation Dynamics and the New Keynesian Phillips Curve By Kevin J. Lansing
  12. Monetary Policy and the Distribution of Money and Capital By Miguel Molico
  13. Euro area inflation persistence in an estimated nonlinear By Gianni Amisanoa
  14. A Search Model of Unemployment and Inflation By Etienne Lehmann
  15. Regional Inflation Dynamics within and across Euro Area and a Comparison with the US By Guenter Beck; Kirstin Hubrich
  16. Fiscal Policy in an estimated open-economy model for the EURO area. By Ratto Marco; European Commission
  17. Monetary Policy with Heterogeneous Agents and Credit Constraints By Xavier Ragot; Yann Algan
  18. The Role of Expectations in a Macroeconomic Model with Inventories By Luca Colombo
  19. Inflation Premium and Oil Price Volatility By Paul Castillo; Carlos Montoro
  20. Stylized Facts of the Peruvian Economy By Paul Castillo; Carlos Montoro; Vicente Tuesta
  21. The cyclicality of interest rate spreads in Austria: Evidence for a financial decelerator? By Johann Burgstaller
  22. Wicksell at the Bank of Canada By Kevin Clinton
  23. Optimal Monetary Policy when Agents are Learning By Krisztina Molnar
  24. Optimal Monetary Policy under Adaptive Learning By Vitor Gaspar
  25. Employment Fluctuations with Downward Wage Rigidity By James Costain; Marcel Jansen
  26. Business cycle transmission from the euro area to CEECs By Joerg Breitung; Sandra Eickmeier
  27. The Time Varying Volatility of Macroeconomic Fluctuations By Alejandro Justiniano
  28. Optimal Monetary Policy in a Small Open Economy with Home Bias By Ester Faia
  29. Unemployment, Capital and Hours: On the quantitative performance of a DSGE By Philip Jung
  30. Caution or Activism? Monetary Policy Strategies in an Open Economy By Lucio Sarno; Martin Ellison; University of Warwick
  31. A State-Level Analysis of the Great Moderation By Michael T. Owyang
  32. The money-age distribution: Empirical facts and economic modelling By Burkhard Heer
  33. Exploring the International Linkages of the Euro Area: a Global VAR Analysis By Stephane Dees; European Central Bank
  34. The discounted economic stock of money with VAR forecasting By William A. Barnett; U. of Kansas
  35. Sticky Prices vs. Limited Participation:What Do We Learn From the Data? By Niki Papadopoulou
  36. Relative Price Distortion and Optimal Monetary Policy in Open Economies By Jinill Kim
  37. What Do We Know About the Effects of Fiscal Policy Shocks? A Comparative Analysis By Christophe Kamps; Dario Caldara
  38. Money and Swedish Inflation Reconsidered By Ansgar Belke; Thorsten Polleit
  39. Inflation Globalization and the Fall of Country Specific Fluctuations By Haroon Mumtaz
  40. Distortionary Taxation, Debt, and the Price Level By A. Schabert; University of Amsterdam
  41. International Wealth Effects By Jiri Slacalek
  42. Monetary Policy under Balance Sheet Uncertainty By Saki Bigio; Marco Vega
  43. Sovereign Risk Premiums in the European Government Bond Market By Kerstin Bernoth; Jürgen von Hagen; Ludger Schuknecht
  44. New Evidence on the Puzzles: Monetary Policy and Exchange Rates By Almuth Scholl; ; Harald Uhlig
  45. An approximate consumption function By Mario Padula
  46. On the Expectations Hypothesis in US Term Structure By Erdenebat Bataa
  47. Speculative Hyperinflations: When Can We Rule Them Out? By Oscar J. Arce
  48. Exchange-Rate-Based Stabilization, Durables Consumption, and Stylized Facts By Manoj Atolia
  49. On Artificial Structural Unemployment By Maciej K. Dudek; Szkoła Główna Handlowa
  50. The Spectre of Deflation: A Review of Empirical Evidence By Gregor W. Smith
  51. The Great Moderation and the ‘Bernanke Conjecture’ By Luca Benati; Bank of England
  52. Monetary regime choice in the accession countries - a theoretical analysis By Anna Lipinska
  53. Macroeconomic Dynamics under Rational Inattention By Bartosz Mackowiak
  54. Forecasting Inflation: the Relevance of Higher Moments By Jane M. Binner
  55. Monetary Policy and the Illusionary Exchange Rate Puzzle By Hilde C. Bjørnland; University of Oslo
  56. Linear-Quadratic Approximation, Efficiency and Target-Implementability By Paul Levine
  57. Firm Dynamics with Infrequent Adjustment and Learning By Eugenio Pinto
  58. Demographic Uncertainty and Labour Market Imperfections in Small Open Economy By Juha Kilponen
  59. Recursive Thick Modeling and the Choice of Monetary Policy in Mexico By Arnulfo Rodriguez; Banco de México
  60. Stochastic Gradient versus Recursive Least Squares Learning By Sergey Slobodyan; Anna Bogomolova
  61. Natural volatility, welfare and taxation By Olaf Posch
  62. Beveridge-Nelson Decomposition with Markov Switching By Chin Nam Low; Heather Anderson; Ralph Snyder
  63. Nominal Rigidities in an Estimated Two Country By Riccardo Cristadoro
  64. Dilemas macroeconómicos e política monetária: o caso da Zona Euro By Manuel M. F. Martins
  65. Secular Trends in U.S Saving and Consumption By Kaiji Chen
  66. “To Deficit or Not to Deficit”: Should European Fiscal Rules Differ Among Countries? By Óscar Afonso; Rui Henrique Alves
  67. The Triple-Parity Law By Jean-Christian Lambelet
  68. Skewed policy responses and IT in Latin America By Marco Vega
  69. The Independent Monetary Policy under the Fixed Exchange Regime By Gang Gong; William Goffe
  70. What do deficits tell us about debt? Empirical evidence on creative accounting with fiscal rules in the EU By Jürgen von Hagen; Guntram B. Wolff
  71. Estimation of Precautionary Demand by Financial Anxieties By Y. Morita; Department of Economics
  72. Nothing Ventured, Nothing Gained: The Long-run Fiscal Reward of Structural Reforms By Peter Hoeller; Claude Giorno
  73. Dismissal Protection or Wage Flexibility By Jens Rubart
  74. Inspecting the noisy mechanism: the stochastic growth model with partial information By Liam Graham
  75. Job Creation and Investment in Imperfect Capital and Labor Markets By Silvio Rendon
  76. The Quest for Status and Endogenous Labor Supply: The Relative Wealth Framework By Walter H. Fisher
  77. How the ECB and the US Fed Set Interest Rates By Ansgar Belke; Thorsten Polleit
  78. Are Indexed Bonds a Remedy for Sudden Stops$\_?$ By C. Bora Durdu,
  79. Do european business cycles look like one ? By Maximo Camacho; Gabriel Perez-Quiros; Lorena Saiz
  80. Tax-Deferred Savings and Early Retirement By Gaobo Pang; University of Maryland
  81. The External Finance Premium and the Macroeconomy: US post-WWII Evidence By Ferre De Graeve
  82. The Fractional OU Process: Term Structure Theory and Application By Esben Hoeg
  83. Three Lectures on Monetary Theory and Policy: Speaking Notes and Background Papers By David Laidler
  84. New OECD Methods for Supply-side and Medium-term Assessments: A Capital Services Approach By Pierre-Olivier Beffy; Patrice Ollivaud; Pete Richardson; Franck Sédillot
  85. On learnability of E–stable equilibria By Sergey Slobodyan
  86. Oil crisis, Energy Saving Technological Change, and the Stock Market Collapse of 1974 By Adrian Peralta-Alva
  87. Skill Wage Premia, Employment, and Cohort Effects: Are Workers in Germany All of the Same Type? By Bernd Fitzenberger; Karsten Kohn
  88. A Dynamic Tobit Model for the Open Market Desk's Daily Reaction Function By George Monokroussos
  89. Learning Hyperinflations By Atanas Christev
  90. Labor Market Institutions and Aggregate Fluctuations in a Search and Matching Model By Francesco Zanetti
  91. Endogenous growth and time to build: the AK case. By Mauro Bambi
  92. Complete Markets, Enforcement Constraints and Intermediation By Arpad Abraham
  93. Education and Crime over the Lifecycle By Giulio Fella; Giovanni Gallipoli
  94. Impact of oil prices in an estimated EU12 open economy model By M. Ratto
  95. Financial Deregulation and Industrial Development: Subsequent Impact on Economic Growth in the Czech Republic, Hungary and Poland By Patricia McGrath; ;
  96. The social cost-of-living: welfare foundations and estimation By Tom Crossley; Krishna Pendakur
  97. Flat Tax Reforms in the U.S.: a Boon for the Income Poor By Javier Diaz-Gimenez
  98. Labour market screening with intermediaries By Paul Schweinzer
  99. Bilateral Matching and Latin Squares By Aliprantis, C. D.; Camera, G.; Puzzello, D.
  1. By: Richard Mash (Oxford University)
    Keywords: Monetary policy, Phillips curve, Inflation Persistence, Microfoundations
    JEL: E52 E58 E22
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:457&r=mac
  2. By: Fiorella de Fiore
    Keywords: oil price shocks; montary policy; fiscal policy; DSGE
    JEL: E32 E52 E63 F41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:402&r=mac
  3. By: Alejandro Justiniano (Federal Reserve Board)
    Keywords: Inflation Inertia; Monetary Policy; Bayesian Estimation; Multisectoral Cascading
    JEL: E31 E32 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:422&r=mac
  4. By: Peter Hördahl (European Central Bank)
    Keywords: Term structure of interest rates, risk premia, policy rules
    JEL: E43 E44
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:203&r=mac
  5. By: Federico Ravenna (University of California)
    Keywords: Term Structure of Interest Rates, Monetary Policy, Sticky Prices, Habit Persistence, Expectations Hypothesis.
    JEL: E43 E52 G12
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:197&r=mac
  6. By: Sean Holly (Cambridge University); Jagjit Chadha (University of St Andrews; Brunel University)
    Keywords: macroeconomic models, yield curve
    JEL: E43 E44 E47
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:105&r=mac
  7. By: Juuso Vanhala (Bank of Finland; Department of Economics University of Helsinki); University of Helsinki
    Keywords: Matching, Income taxation, Wage, Business cycles
    JEL: J64 E24 E32
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:346&r=mac
  8. By: Efrem Castelnuovo (Economics University of Padua)
    Keywords: Taylor principle, Taylor curve, new Keynesian model, indeterminacy, persistence
    JEL: E30 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:59&r=mac
  9. By: Ramón Maria-Dolores; Jesus Vazquez
    Keywords: NKM model, term structure, monetary policy rule
    JEL: C32 E30 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:6&r=mac
  10. By: Michael Krause (Department of Economics Deutsche Bundesbank)
    Keywords: Nominal and real rigidities, distortionary taxation, optimal monetary policy
    JEL: E52 E63
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:306&r=mac
  11. By: Kevin J. Lansing (Federal Reserve Bank of San Francisco)
    Keywords: Inflation Expectations, Phillips Curve, Time-Varying Persistence and Volatility
    JEL: E31 E37
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:488&r=mac
  12. By: Miguel Molico (Bank of Canada; University of Western Ontario)
    Keywords: search, money, capital, monetary policy, redistribution, wealth
    JEL: E40 E50
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:136&r=mac
  13. By: Gianni Amisanoa
    Keywords: DSGE models, policy rules, inflation persistence, second order approximations,
    JEL: C11 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:347&r=mac
  14. By: Etienne Lehmann (ERMES (CNRS and University of Paris 2 Panthéon Assas) and IZA Bonn)
    Abstract: In this paper, I introduce money in the standard labor-matching model (Mortensen and Pissarides 1999, Pissarides 2000). A double coincidence problem makes Fiat Money necessary as a medium of exchange. In the long-run, a rise in the rate of money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal monetary growth rate decreases with the workers’ bargaining power, the level of unemployment benefits and the payroll tax rate.
    Keywords: inflation, unemployment, search-matching, Friedman rule
    JEL: E24 E52 J64
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp2194&r=mac
  15. By: Guenter Beck (Goethe University Frankfurt); Kirstin Hubrich
    Keywords: regional inflation dynamics, euro area and US, common factor models
    JEL: E31 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:338&r=mac
  16. By: Ratto Marco; European Commission
    Keywords: DSGE Models, Fiscal Policy
    JEL: E12 E62 C13
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:43&r=mac
  17. By: Xavier Ragot; Yann Algan
    Keywords: monetary policy, Credit constraints, Welfare
    JEL: E2 E5
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:292&r=mac
  18. By: Luca Colombo (Catholic University of Milan public)
    Keywords: expectations, inventories, non-neutrality of money, deflation
    JEL: D45 D50 E32
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:65&r=mac
  19. By: Paul Castillo (London School of Economics London School of Economics); Carlos Montoro
    Keywords: Phillips Curve, Second Order Solution, Oil Price Shocks, Endogenous Trade-off
    JEL: E52 E42 E12 C63
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:18&r=mac
  20. By: Paul Castillo (Central bank of Peru); Carlos Montoro (Central bank of Peru); Vicente Tuesta (Central bank of Peru)
    Abstract: In this paper we report the main stylized facts of the business cycle for the Peruvian Economy. This study is important for the development of economic models, which are useful to evaluate the impact of different economic policies. Moreover, for those models to have empirical validity, it is necessary they reproduce the short run dynamics of the economy. Because of this, we need a clear understanding of the stylized facts of the business cycle, in particular the volatility and the co-movements of the main macroeconomic variables. Our results can be summarized as follows: First, we verify an important structural change in the Peruvian economy in the 90´s respect to the 80´s. In particular, we observe both broader trade and financial openness, more stable fiscal and monetary policies, and deeper financial markets. Second, as a consequence of this structural change and the adoption of the fully-fledge inflation targeting regime, the cyclical behavior of the main macroeconomic variables has changed in important ways. In particular, we observe during the last period (1994-2005) in comparison with the previous period (1980-1993): a reduction of almost 4 times in volatility of output and its main components, a higher correlation of the business cycle with terms of trade, a less pro-cyclical fiscal policy, and since 2002, a higher importance of the interest rates on business cycle and inflation fluctuations.
    Keywords: Ciclo Económico, Filtro Baxter y King, Perú.
    JEL: C82 E10 E30
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:rbp:wpaper:2006-005&r=mac
  21. By: Johann Burgstaller (Department of Economics, Johannes Kepler University Linz, Austria)
    Abstract: This study explores an important aspect of how the Austrian banking sector contributes to the propagation of aggregate shocks. Time series data for the 1995-2003 period are applied to examine the cyclical variations in interest rate spreads. Differentials between interest rates on loans and savings are not found to shrink in economic upturns, so there is no financial mechanism emanating from bank markups that would entail an amplification of macroeconomic fluctuations. But also the evidence for Austrian banks dampening the business cycle (a financial de-celerator) is not striking as the increases of interest rate spreads after shocks in the growth rate of real GDP are practically small.
    Keywords: Interest rate spreads; business cycles; financial accelerator; impulse response analysis
    JEL: E32 G21
    Date: 2006–07
    URL: http://d.repec.org/n?u=RePEc:jku:econwp:2006_02&r=mac
  22. By: Kevin Clinton (Queen's University)
    Abstract: Wicksell, writing around the start of the 20th century, outlined an approach to monetary policy strikingly similar to the modern approach, of which the Bank of Canada has been a pioneer. Its features include: the overriding objective of price stability (or low inflation); an interest rate instrument controlled by the rates on settlement balances at the central bank; and a policy rule under which the instrument varies in response to deviations from the objective. Wicksell’s natural rate of interest has resurfaced as the neutral rate in mainstream macroeconomic models; and his description of the inflation process has parallels in the modern Phillips curve. Moreover, in a mandate for price stability, one can find a logical basis for the independence and accountability of central banks. The paper tries to explain why Wicksell’s ideas fell by the wayside for a century, and describes how the Bank of Canada, by pragmatic steps in the 1990s, helped reinvent Wicksell, and install a neo-Wicksellian monetary policy.
    Keywords: Wicksell, central bank, monetary policy, Bank of Canada
    JEL: E42 E52 E58
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:qed:wpaper:1087&r=mac
  23. By: Krisztina Molnar
    Keywords: Optimal Monetary Policy, Learning, Rational Expectations
    JEL: C62 E0
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:40&r=mac
  24. By: Vitor Gaspar (Banco de Portugal)
    Keywords: Optimal Policy, Adaptive Learning, Rational Expectations, Policy Rules
    JEL: E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:183&r=mac
  25. By: James Costain (Bank of Spain); Marcel Jansen (Economics Universidad Carlos III de Madrid)
    Keywords: Job matching, wage rigidity, efficiency wages, contractual fragility
    JEL: C78 E24 E32 J64
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:204&r=mac
  26. By: Joerg Breitung (Unviersity of Bonn); Sandra Eickmeier (Deutsche Bundesbank)
    Keywords: Dynamic factor models, international business cycles, EMU enlargement, sign restrictions
    JEL: F02 E32 C3
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:229&r=mac
  27. By: Alejandro Justiniano (Board of Governors of the Federal Reserve)
    Keywords: Great Moderation, Stochastic Volatility, Investment Specific Technology Shock, Relative Price of Investment, DSGE Models
    JEL: C32 E32
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:219&r=mac
  28. By: Ester Faia (Pompeu-Fabra University)
    Keywords: Optimal Monetary Policy, Ramsey Planner, Home Bias, Sticky Prices
    JEL: E52 F41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:521&r=mac
  29. By: Philip Jung (University of Frankfurt)
    Keywords: Unemployment
    JEL: E30 E24 J64
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:123&r=mac
  30. By: Lucio Sarno (Universty of Warwick); Martin Ellison; University of Warwick
    Keywords: open economy; learning; monetary policy
    JEL: D83 E52 F41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:214&r=mac
  31. By: Michael T. Owyang (Research Department Federal Reserve Bank of St Louis)
    Keywords: disaggregation, volatility reduction, Markov-switching
    JEL: C22 E24 E32
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:131&r=mac
  32. By: Burkhard Heer (Free University of Bolzano)
    Keywords: Money-age distribution, money demand
    JEL: E41 E31 D30
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:191&r=mac
  33. By: Stephane Dees; European Central Bank
    Keywords: Global VAR (GVAR), Global interdependencies, global macroeconomic modeling, impulse responses
    JEL: C32 E17 F47
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:47&r=mac
  34. By: William A. Barnett; U. of Kansas
    Keywords: Monetary aggregation, discounted economic capital stock, VAR, robustness, capital asset pricing
    JEL: E41 G12 C43 C22
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:51&r=mac
  35. By: Niki Papadopoulou (Central Bank of Cyprus; University of Cyprus)
    Keywords: Estimating DSGE, Sticky Prices, Limited Participation, Monetary Policy
    JEL: C5 E3 E4 E5
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:418&r=mac
  36. By: Jinill Kim (Federal Reserve Board)
    Keywords: Cost-Push Shocks; Relative Price Distortion; Interdependence; Open Economy; Optimal Policy
    JEL: E52 F33 F41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:211&r=mac
  37. By: Christophe Kamps (European Central Bank); Dario Caldara (Economics IIES)
    Keywords: Fiscal Policy Shocks, VAR analysis
    JEL: C32 E20 E60
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:257&r=mac
  38. By: Ansgar Belke; Thorsten Polleit
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:hoh:hohdip:270&r=mac
  39. By: Haroon Mumtaz (monetary assessment and strategy Bank of England)
    Keywords: international inflation, world and country factors,great moderation
    JEL: E30 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:166&r=mac
  40. By: A. Schabert; University of Amsterdam
    Keywords: Monetary and fiscal policy, Distortionary taxes, Price level determination, Balanced budget policy
    JEL: E E
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:75&r=mac
  41. By: Jiri Slacalek (Macro Analysis and Forecasting German Institute for Economic Research)
    Keywords: wealth effect, income effect, consumption dynamics
    JEL: E21 E32 C22
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:425&r=mac
  42. By: Saki Bigio (Econometric Modelling Unit Central Bank of Peru); Marco Vega (LSE)
    JEL: C11 C61 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:157&r=mac
  43. By: Kerstin Bernoth (De Nederlandsche Bank (DNB), ZEI-University of Bonn. k.bernoth@dnb.nl); Jürgen von Hagen (Institut für Internationale Wirtschaftspolitik, University of Bonn, CEPR, and Indiana University, Walter-Flex-Str. 3, 53113 Bonn, Germany, Tel: +49 228 73 9199, vonhagen@uni-bonn.de); Ludger Schuknecht (European Central Bank, ludger.schuknecht@ecb.int)
    Abstract: This paper provides a study of bond yield differentials among EU government bonds issued between 1993 and 2005 on the basis of a unique dataset of issue spreads in the US and DM (Euro) bond market. Interest differentials between bonds issued by EU countries and Germany or the USA contain risk premiums which increase with fiscal imbalances and depend negatively on the issuer's relative bond market size. The start of the European Monetary Union has shifted market attention to debt service payments as the key measure of indebtedness and eliminated liquidity premiums in the euro area.
    Keywords: asset pricing, determination of interest rates, fiscal policy, government debt
    JEL: G12 E43 E62 H63
    Date: 2006–05
    URL: http://d.repec.org/n?u=RePEc:trf:wpaper:151&r=mac
  44. By: Almuth Scholl; ; Harald Uhlig
    Keywords: vector autoregressions, agnostic identification, forward discount bias puzzle, exchange rate puzzle, monetary policy
    JEL: C32 E58 F31
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:5&r=mac
  45. By: Mario Padula (Università di Salerno)
    Keywords: Consumption, Precautionary Saving, Buffer Stock
    JEL: E21 E27
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:133&r=mac
  46. By: Erdenebat Bataa (Economics University of Manchester)
    Keywords: expectations hypothesis; term structure of interest rates; vector autoregression
    JEL: G10 E43
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:508&r=mac
  47. By: Oscar J. Arce (Resarch Banco de España)
    Keywords: price level indeterminacy, fiscal and monetary interactions, fiscal theory of the price level
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:376&r=mac
  48. By: Manoj Atolia (Florida State University)
    Keywords: Inflation, Exchange-Rate-Based-Stabilization, Durables
    JEL: E3 E63 F41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:416&r=mac
  49. By: Maciej K. Dudek; Szkoła Główna Handlowa
    Keywords: Unemployment, Coordination
    JEL: E24 D50
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:171&r=mac
  50. By: Gregor W. Smith (Queen's University)
    Abstract: What explains the widespread fear of deflation? This paper reviews the history of thought, economic history, and empirical evidence on deflation, with a view to answering this question. It also outlines informally the main effects of deflation in applied monetary models. The main finding is that -- for both historical and contemporary deflations -- there are many open, empirical questions that could be answered using the tools economists use to study inflation and monetary policy more generally.
    Keywords: deflation
    JEL: E31
    Date: 2006–07
    URL: http://d.repec.org/n?u=RePEc:qed:wpaper:1086&r=mac
  51. By: Luca Benati; Bank of England
    Keywords: Great Inflation, indeterminacy, structural break tests; frequency domain, VARs.
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:158&r=mac
  52. By: Anna Lipinska (IDEA Universitat Autonoma de Barcelona)
    Keywords: monetary regime choice, real exchange rate dynamics, accession economies
    JEL: F41 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:243&r=mac
  53. By: Bartosz Mackowiak (Humboldt University Berlin)
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:443&r=mac
  54. By: Jane M. Binner (Aston University)
    Keywords: relative price distribution, higher moments, out-of-sample inflation forecasting
    JEL: C22 C43 E27
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:407&r=mac
  55. By: Hilde C. Bjørnland; University of Oslo
    Keywords: Dornbusch overshooting, VAR, monetary policy, exchange rate puzzle, identification.
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:45&r=mac
  56. By: Paul Levine (University of Surrey)
    Keywords: Linear-quadratic approximation, dynamic stochastic general equilibrium models, utility-based loss function
    JEL: E52 E37 E58
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:441&r=mac
  57. By: Eugenio Pinto (University of Maryland)
    Keywords: Adjustment Costs, Learning, Young Firms
    JEL: E24 L11 L16
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:467&r=mac
  58. By: Juha Kilponen (Bank of Finland)
    Keywords: Demographics, Uncertainty, DSGE, Labour Markets
    JEL: E62 E27 H55
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:227&r=mac
  59. By: Arnulfo Rodriguez (Economic Studies Division Bank of Mexico); Banco de México
    Keywords: model uncertainty, optimal control, out-of-bag, thin modeling and thick modeling
    JEL: C61 E61
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:30&r=mac
  60. By: Sergey Slobodyan; Anna Bogomolova
    Keywords: constant gain adaptive learning, E—stability, recursive least squares, stochastic gradient learning
    JEL: E10 E17
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:446&r=mac
  61. By: Olaf Posch (Department of Economics University of Hamburg)
    Keywords: Endogenous fluctuations and growth, welfare analysis, taxation, stochastic continuous time model, Poisson uncertainty
    JEL: E32 H3 O33
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:95&r=mac
  62. By: Chin Nam Low (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Heather Anderson (Australia National University); Ralph Snyder (Monash University)
    Abstract: In this paper, we consider the introduction of Markov-switching (MS) processes to both the permanent and transitory components of the Beveridge-Nelson (BN) decomposition. This new class of MS models within the context of BN decomposition provides an alternative framework in the study of business cycle asymmetry. Our approach incorporates Markov switching into a BN decomposition formulated in a single source of error state-space form, allowing regime switches in the long-run multiplier as well as in the short-run parameters.
    JEL: C22 C51 E32
    Date: 2006–07
    URL: http://d.repec.org/n?u=RePEc:iae:iaewps:wp2006n14&r=mac
  63. By: Riccardo Cristadoro (Bank of Italy)
    Keywords: Macroeconomic simulation; Bayesian Estimation; Non-traded goods; Distribution costs
    JEL: C32 E00
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:162&r=mac
  64. By: Manuel M. F. Martins (CEMPRE, Faculdade de Economia do Porto, Universidade do Porto)
    Abstract: Descreve-se o essencial do essencial da tese Macroeconomic Trade-offs and Monetary Policy in the Euro Area (Martins, 2002), incorporando revisões, actualizações e extensões contidas nos artigos da respectiva disseminação internacional (Aguiar e Martins, 2005a, 2005b, 2005c). Tendo em vista a divulgação a cientistas de outras disciplinas, omite-se detalhes e complexidades técnicas e baseia-se a exposição em argumentos e gráficos intuitivos. Após uma breve revisão sobre dilemas macroeconómicos e política monetária, descreve-se três estudos neste âmbito relativos à Área do Euro. Primeiro, estuda-se as configurações do dilema de Phillips entre níveis de inflação e do desemprego e da Lei de Okun relacionando ciclos do emprego e do produto. Segundo, a partir de dados do dilema de Taylor entre variabilidades da inflação e do produto, estima-se a data de emergência de facto e os parâmetros do regime agregado de política monetária na Área. Finalmente, testa-se hipóteses de assimetrias nas preferências reveladas pela autoridade nesse regime agregado.
    Keywords: Zona Euro; Curva de Phillips; Lei de Okun; Regime de Política Monetária; Assimetrias
    Date: 2006–07
    URL: http://d.repec.org/n?u=RePEc:por:fepwps:221&r=mac
  65. By: Kaiji Chen (Economics University of Oslo)
    Keywords: Consumption, Saving
    JEL: E2
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:494&r=mac
  66. By: Óscar Afonso (CEMPRE, Faculdade de Economia do Porto, Universidade do Porto); Rui Henrique Alves (Faculdade de Economia do Porto, Universidade do Porto)
    Abstract: The creation of the European Monetary Union has led to a substantial increase in the discussion of the importance of fiscal discipline and adequate fiscal rules in such a monetary union. The “European” solution has been challenged by many authors and politicians: among the main questions discussed in recent years, we find the use of the same rules for different situations in Member-Countries, particularly in terms of economic dimension and economic level of development. We develop a model of a monetary union between two countries that may differ in economic dimension and in the level of development. By solving transitional dynamics towards the steady state through numerical computation, the model allows us to examine the impact of fiscal shocks that may lead to excessive deficits. Our results suggest that the implications of such deficits depend on whether they occur in the small and less developed country or in the big and more developed one. In this context, we argue that an excessive deficit should be temporarily allowed in the case of the small and less developed country, in order to improve economic convergence and wages within the union.
    Keywords: Monetary Union; SGP; Excessive Deficits; Technological-Knowledge Gap; Numerical Computation.
    JEL: C61 E62 H6 O3
    Date: 2006–07
    URL: http://d.repec.org/n?u=RePEc:por:fepwps:219&r=mac
  67. By: Jean-Christian Lambelet
    Keywords: nominal uncovered interest rate parity, relative purchasing power parity, real interest rate parity, international arbitrage, economic laws, OECD countries
    JEL: C21 C31 E44 E41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:33&r=mac
  68. By: Marco Vega (Economics LSE and Central Bank of Peru)
    JEL: E52 E47
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:61&r=mac
  69. By: Gang Gong (Tsinghua University); William Goffe (Economics SUNY Oswego)
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:517&r=mac
  70. By: Jürgen von Hagen (Institut für Internationale Wirtschaftspolitik, University of Bonn, CEPR, and Indiana University, Walter-Flex-Str. 3, 53113 Bonn, Germany, Tel: +49 228 73 9199, vonhagen@uni-bonn.de); Guntram B. Wolff (Deutsche Bundesbank, ZEI-University of Bonn and UCIS-University of Pittsburgh, Wilhelm-Epstein-Straße 14, 60431 Frankfurt am Main, Germany, Tel: +49 69 9566 3353, guntram.wolff@bundesbank.de)
    Abstract: Fiscal rules, such as the Excessive Deficit Procedure and the Stability and Growth Pact (SGP), aim at constraining government behavior. Milesi-Ferretti (2003) develops a model in which governments circumvent such rules by reverting to creative accounting. The amount of this depends on the reputation cost for the government and the economic cost of sticking to the rule. We provide empirical evidence of creative accounting in the European Union. We find that the SGP rules have induced governments to use stock-flow adjustments, a form of creative accounting, to hide deficits. The tendency to substitute stock-flow adjustments for budget deficits is especially strong for the cyclical component of the deficit, as in times of recession the cost of reducing the deficit is particularly large.
    Keywords: Fiscal rules, stock-flow adjustments, debt-deficit adjustments, stability and growth pact, excessive deficit procedure, ESA 95
    JEL: E62 H61 H62 H63 H70
    Date: 2006–01
    URL: http://d.repec.org/n?u=RePEc:trf:wpaper:148&r=mac
  71. By: Y. Morita (Department of Economics Kyoto Gakuen University); Department of Economics
    Keywords: financial anxieties, precautionary demand,cointegration,EGARCH
    JEL: E42 E52 E58
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:46&r=mac
  72. By: Peter Hoeller; Claude Giorno
    Abstract: The recent reform of the Stability and Growth Pact provides more leeway for EU governments to temporarily breach the 3% deficit limit if this facilitates the implementation of initially expensive reforms. But the implementation of this principle is not obvious as budgets would need to specify the initial and multi-annual budgetary cost and benefit profile of reforms. Budgets should also be explicit about the fiscal cost of inaction to allow a balanced judgment of countries? trade-offs between the various options available. This paper first assesses the information requirements to implement this new form of flexibility built into the Stability and Growth Pact. It then provides simulation exercises to highlight the positive budgetary effects of coordinated structural reforms in the euro area as well as the need for an adequate monetary policy response to make sure that demand adjusts to the improved supply conditions swiftly. The budgetary gains would still depend on the type of reform and their impact on employment and productivity. On the other hand, national policy initiatives by a single country may only have a limited impact, especially in the short term and in the case of a large country. Indeed, in monetary union, the strength of endogenous adjustment mechanisms appears to be weaker in larger countries. Finally, the experience of New Zealand and Australia has shown that the longer-term benefits of reforms both in terms of the budget and overall economic performance are significant. Even so, it is not easy to disentangle the various forces at play. Fundamentally, structural reform and the implementation of smart fiscal frameworks tend to go hand in hand ? indeed may be two sides of the same coin. <P>Qui ne risque n'a rien : Les bénéfices budgétaires à long terme des réformes structurelles <BR>La réforme récente du Pacte de stabilité et de croissance fournit davantage de marges aux gouvernements des pays de l'UE pour dépasser la limite de 3 % du déficit public si cela facilite la mise en oeuvre de réformes initialement coûteuses. L'application de ce principe n'est cependant pas évidente car les budgets devraient indiquer le profil des coûts et bénéfices budgétaires attendus de ces réformes, non seulement dans l'immédiat mais aussi dans une perspective pluriannuelle. Les budgets devraient aussi être explicites sur le coût budgétaire de l'inaction pour permettre une évaluation équilibrée des dilemmes auxquels doivent faire face les pays en fonction des diverses options disponibles. Cet article fournit d'abord une évaluation des besoins d'information pour mettre en oeuvre les nouveaux éléments de flexibilité inclus dans le Pacte de stabilité et de croissance. Il présente ensuite des exercices de simulation afin d'illustrer les effets budgétaires positifs de réformes structurelles coordonnées dans la zone euro ainsi que la nécessité d'une réponse de politique monétaire adéquate afin d'assurer que la demande s'ajuste rapidement à l'amélioration des conditions d'offre. Les gains budgétaires seraient alors variables selon le type de réformes réalisées et leur impact sur l'emploi et la productivité. D'un autre côté, des réformes menées dans un pays isolé pourraient n'avoir qu'un effet limité, notamment à court terme dans le cas d'un grand pays. En effet, dans l'union monétaire, la force des mécanismes d'ajustement endogènes semble plus faible dans les grands pays. Enfin, l'expérience de la Nouvelle Zélande et de l'Australie montre que les bénéfices à long terme des réformes sont importants à la fois sur le plan budgétaire et pour les performances économiques d'ensemble, même s'il n?est pas aisé de distinguer l'influence des différentes forces en jeu. Fondamentalement, la réforme structurelle et la mise en place d'un cadre budgétaire pertinent tendent à aller de pair - et semblent en effet être les deux faces d'une même pièce.
    Keywords: réforme structurelle, fiscal policy, politique budgétaire, structural reforms, monetary union, union monétaire
    JEL: E37 E62 E63 E65 H6 P52
    Date: 2006–06–30
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:493-en&r=mac
  73. By: Jens Rubart (Institute of Economics Darmstadt University of Technology)
    Keywords: DGE Model, Heterogeneous Labor, Skill Biased Technological Change, Search Unemployment, Employment Protection, Minimum Wages
    JEL: E32 J21 J31 J41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:406&r=mac
  74. By: Liam Graham (University College)
    Keywords: DGE; Partial information; Measurement error
    JEL: E32 E37
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:207&r=mac
  75. By: Silvio Rendon (Economics ITAM)
    Keywords: Job Creation, Employment, Investment, Adjustment Costs, Liquidity Constraints, Structural Estimation
    JEL: J23 J32 E22 G31
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:432&r=mac
  76. By: Walter H. Fisher
    Keywords: Status, Relative Consumption, Relative Wealth, Endogenous Labor Supply
    JEL: D62 D91 E21
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:60&r=mac
  77. By: Ansgar Belke; Thorsten Polleit
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:hoh:hohdip:269&r=mac
  78. By: C. Bora Durdu, (Department of Economics University of Maryland)
    Keywords: Indexed Bonds, Degree of Indexation,
    JEL: F41 F32 E44
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:11&r=mac
  79. By: Maximo Camacho (Universidad de Murcia); Gabriel Perez-Quiros (Prime Minister's economic bureau); Lorena Saiz (Bank of Spain)
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:175&r=mac
  80. By: Gaobo Pang (Dept. of Economics University of Maryland); University of Maryland
    JEL: E21 H55 H31
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:31&r=mac
  81. By: Ferre De Graeve (Ghent University)
    Keywords: financial accelerator, external finance premium, DSGE model, Bayesian estimation
    JEL: E4 E5 G32
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:84&r=mac
  82. By: Esben Hoeg (Aarhus School of Business)
    Keywords: Fractional bond pricing equation; fractional Brownian motion;fractional Ornstein-Uhlenbeck process;long memory;Kalman Filter
    JEL: C22 C51 E43
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:194&r=mac
  83. By: David Laidler
    Abstract: In order to promote the exchange of ideas and to support its own research capacity, the Oesterreichische Nationalbank regularly invites internationally renowned economists for short guest professorships. This year, from June 12 -14 2006, David Laidler gave three public lectures on topics related to monetary theory and monetary policy. The first lecture was on “Monetary Policy and the Austrians”, the second on “The Rise and Fall of Monetarism” and the third has dealt with the question “Is there a Role for Money in Monetary Policy in the 21st Century?”. The lectures were based on three background papers, which are contained in this OeNB Working Paper that also includes the lecture notes that were prepared for the lecture series.
    Date: 2006–06–19
    URL: http://d.repec.org/n?u=RePEc:onb:oenbwp:128&r=mac
  84. By: Pierre-Olivier Beffy; Patrice Ollivaud; Pete Richardson; Franck Sédillot
    Abstract: The OECD makes frequent use of the supply-side framework and associated measures of factor productivity, productive potential and associated output gaps in the assessment of the short-term conjunctural situation, comparative economic performance and longer-term growth determinants. This paper describes a number of recent changes and improvements in the methods used in estimating potential output for OECD countries and the systems in which they are used, notably for the production of mediumterm economic scenarios. By and large, these reflect important changes and improvements in available statistical data sets, notably for measuring productive capital, as well as the development of more efficient model-based methods for making medium-term projections on a consistent international basis. <P>Révisions des méthods pour élaborer les potentiels de croissance et le scénario de moyen terms de l'OCDE <BR>L’OCDE utilise de façon régulière son cadre analytique de dérivation du bloc d’offre et ses mesures dérivées de productivité globale des facteurs, de potentiel de croissance et d’écart de production dans son évaluation de la situation conjoncturelle, des performances économiques relatives des différents pays et des déterminants de la croissance de long terme. Ce papier décrit les changements et améliorations récents apportés, d’une part, à la méthode d’estimation des potentiels de croissance des pays de l’OCDE et, d’autre part, aux systèmes dans lesquels ces potentiels sont utilisés, notamment ceux assurant la production de scénario de moyen terme. Globalement, ces changements reflètent la meilleure qualité des statistiques disponibles, notamment celles relatives à la mesure du stock de capital productif, mais aussi la mise en place de méthodes plus efficaces pour produire un ensemble cohérent de projections internationales de moyen terme.
    Keywords: OECD, OCDE, production function, potential output, capital services, medium-term projections, macroeconomic modelling, modélisation macroéconomique, fonction de production, production potentielle, stock de capital productif, projections de moyen terme
    JEL: C53 E22 E23 E27 E32 F17 F47
    Date: 2006–07–06
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:482-en&r=mac
  85. By: Sergey Slobodyan (CERGE-EI)
    Keywords: Adaptive learning, E–stability, stochastic gradient, learnability
    JEL: C62 D83 E17
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:451&r=mac
  86. By: Adrian Peralta-Alva (Department of Economics University of Miami)
    Keywords: Stock Market, Energy Prices, Tobin's q
    JEL: E22 O33 Q43
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:49&r=mac
  87. By: Bernd Fitzenberger (Goethe University Frankfurt, IFS, ZEW and IZA Bonn); Karsten Kohn (Goethe University Frankfurt and IZA Bonn)
    Abstract: This paper studies the relationship between employment and wage structures in West Germany based on the IAB employment subsample 1975{1997. It extends the analytical framework of Card and Lemieux (2001) which simultaneously includes skill and age as important dimensions of heterogeneity. After having identified cohort effects in skill wage premia and in the evolution of relative employment measures, we estimate elasticities of substitution between employees in three different skill groups and between those of different age, taking account of the endogeneity of wages and employment. Compared to estimates in the related literature, we find a rather high degree of substitutability. Drawing on the estimated parameters, we simulate the magnitude of wage changes within the respective skill groups that would have been necessary to halve skill-specific unemployment rates in 1997. The required nominal wage reductions range from 8.8 to 12.2% and are the higher the lower the employees' skill level.
    Keywords: labor demand, heterogeneity, age, skill, wage structure, employment, cohort effects, unemployment
    JEL: J21 J31 E24
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp2185&r=mac
  88. By: George Monokroussos (Economics University at Albany, SUNY)
    Keywords: Reserves, Federal Funds Rate, Open Market Operations, Open Market Desk, Censored Models, Data Augmentation, Markov Chain Monte Carlo, Gibbs Sampling, Time-Varying Parameter Models
    JEL: C15 C22 C24 E4
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:390&r=mac
  89. By: Atanas Christev
    JEL: C62 E63 E65
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:475&r=mac
  90. By: Francesco Zanetti (Bank of England)
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:445&r=mac
  91. By: Mauro Bambi (Economics European University Institute)
    Keywords: AK model, Time to build, D-Subdivision method
    JEL: E00 E3
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:77&r=mac
  92. By: Arpad Abraham (University of Rochester)
    Keywords: Complete markets, Enforcement Constraints, Intermediation
    JEL: E44 D52 G12
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:320&r=mac
  93. By: Giulio Fella (Queen Mary, University of London); Giovanni Gallipoli (University College London public)
    Keywords: Education, Crime, Equilibrium, Policy
    JEL: E10 D50 I20
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:192&r=mac
  94. By: M. Ratto (European Commission DG JRC)
    Keywords: DSGE, estimation, oil prices
    JEL: E37 C11 C52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:386&r=mac
  95. By: Patricia McGrath; ;
    Abstract: The Czech Republic, Hungary and Poland all experienced an initial reduction in the number of industries and an increase in unemployment, once they moved to a market driven economy. Over time the unemployment problem reduced in significance though Poland still experiences high levels to date. Industries sprung up in the private sector in all three countries which counterbalanced the drop in state enterprises. Private sector industries all reported easy access to credit once the business set up while firms with head offices overseas tended to use the home country for borrowing purposes. For these companies, the most significant feature of financial deregulation in the Czech Republic, Hungary and Poland was that of freedom of capital movement, which increased both the level of business and investment opportunities. Results show that financial deregulation led to industrial development in all three countries. Tests to indicate the impact of industrial production on economic growth, show that for the three countries industrial production caused economic growth. This was a uni-directional causality.
    Keywords: Transition Economies, Industrial Development, Financial Deregulation, Economic Growth, Eastern Europe
    JEL: E E23 F43
    Date: 2006–02–01
    URL: http://d.repec.org/n?u=RePEc:wdi:papers:2006-818&r=mac
  96. By: Tom Crossley (Institute for Fiscal Studies and McMaster University); Krishna Pendakur (Institute for Fiscal Studies and Simon Fraser University)
    Abstract: We present a new class of social cost-of-living indices and a nonparametric framework for estimating these and other social cost-of-living indices. Common social cost-of-living indices can be understood as aggregator functions of approximations of individual cost-of-living indices. The Consumer Price Index (CPI) is the expenditure-weighted average of first-order approximations of each individual’s cost-of-living index. This is troubling for three reasons. First, it has not been shown to have a welfare economic foundation for the case where agents are heterogeneous (as they clearly are.) Second, it uses an expenditure-weighted average which downweights the experience of poor households relative to rich households. Finally, it uses only first-order approximations of each individual’s cost-of-living index, and thus ignores substitution effects. We propose a 'common-scaling' social cost-of-living index, which is defined as the single scaling to everyone’s expenditure which holds social welfare constant across a price change. Our approach has an explicit social welfare foundation and allows us to choose the weights on the costs of rich and poor households. We also give a unique solution for the welfare function for the case where the weights are independent of household expenditure. A first order approximation of our social cost-of-living index nests as special cases commonly used indices such as the CPI. We also provide a nonparametric method for estimating second-order approximations (which account for substitution effects).
    Keywords: Inflation, social cost-of-living, demand, average derivatives
    JEL: D11 D12 D63 E31
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:ifs:ifsewp:06/10&r=mac
  97. By: Javier Diaz-Gimenez (Universidad Carlos III)
    Keywords: Flat-tax reforms; Efficiency; Inequality; Earnings distribution; Income distribution
    JEL: D31 E62 H23
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:400&r=mac
  98. By: Paul Schweinzer (Department of Economics, University of Bonn Lennéstraße 37, 53113 Bonn, Germany Paul.Schweinzer@uni-bonn.de)
    Abstract: We consider a Rothschild-Stiglitz-Spence labour market screening model and employ a centralised mechanism to coordinate the efficient matching of workers to firms. This mechanism can be thought of as operated by a recruitment agency, an employment office or head hunter. In a centralised descending-bid, multi-item procurement auction, workers submitwage-bids for each job and are assigned stable jobs as equilibrium outcome. We compare this outcome to independent, sequential hiring by firms and conclude that, in general, a stable assignment can only be implemented if firms coordinate to some extent.
    Keywords: Matching, Multi-item auctions, Sequential auctions, Screening
    JEL: C78 D44 E24 J41
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:trf:wpaper:138&r=mac
  99. By: Aliprantis, C. D.; Camera, G.; Puzzello, D.
    Abstract: We develop a general procedure to construct pairwise meeting processes characterized by two features. First, in each period the process maximizes the number of matches in the population. Second, over time agents meet everybody else exactly once. We call this type of meetings "absolute strangers." Our methodological contribution to economics is to offer a simple procedure to construct a type of decentralized trading environments usually employed in both theoretical and experimental economics. In particular, we demonstrate how to make use of the mathematics of Latin Squares to enrich the modeling of matching economies.
    Keywords: Latin squares ; Matching models ; Spatial interactions
    JEL: C00 C78 D83 E00
    Date: 2006–07
    URL: http://d.repec.org/n?u=RePEc:pur:prukra:1189&r=mac
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