Title:Sophisticated Imitation in Cyclic Games
Author(s):SCHLAG, Karl H.; HOFBAUER, JosefDate:2000Type of Publication:ArticleAbstract:Individuals belonging to two large populations are repeatedly randomly matched to play a cyclic $2\times 2$ game such as Matching Pennies. Between matching rounds, individuals sometimes change their strategy after observing ...
Title:Spillovers in Industrial Districts
Author(s):GUISO, Luigi; SCHIVARDI, FabianoDate:2007Type of Publication:ArticleAbstract:We study the role of social interaction (SI) in determining firms’ employment adjustments in industrial districts. We assume that SI matters only among firms that are both similar and geographically close. Our first test ...
Title:Sticky Prices and Volatile Output
Author(s):ELLISON, Martin; SCOTT, A.Date:2000Type of Publication:ArticleAbstract:We examine the effect of introducing a specific type of price stickiness into a stochastic growth model, subject to a cash in advance constraint. As in previous studies, we find the introduction of price rigidities provides ...
Title:Stochastic Linear Trends - Models and Estimators
Author(s):MARAVALL, AgustinDate:1993Type of Publication:ArticleAbstract:The paper considers stochastic linear trends in series with a higher than annual frequency of observation. Using an approach based on ARIMA models, some of the trend models for the model interpretation of trend estimation ...
Title:Strategic Militarization, Deterrence and Wars
Author(s):JACKSON, Matthew O.; MORELLI, MassimoDate:2009Type of Publication:ArticleAbstract:We study countries choosing armament levels and then whether or not to go to war. We show that if the costs of war are not overly high or low, then all equilibria must involve dove, hawk, and deterrent strategies and the ...
Title:Strategic Militarization, Deterrence and Wars
Author(s):JACKSON, Matthew O.; MORELLI, MassimoDate:2009Type of Publication:ArticleAbstract:We study countries choosing armament levels and then whether or not to go to war. We show that if the costs of war are not overly high or low, then all equilibria must involve dove, hawk, and deterrent strategies and the ...
Title:Structural holes in social networks
Author(s):GOYAL, Sanjeev; VEGA-REDONDO, FernandoDate:2007Type of Publication:ArticleAbstract:We consider a setting where every pair of players that undertake a transaction (e.g. exchange goods or information) creates a unit surplus. A transaction can take place only if the players involved have a connection. If ...
Title:Structural Vector Autoregressions with Markov Switching
Author(s):LUETKEPOHL, Helmut; LANNE, Markku; MACIEJOWSKA, KatarzynaDate:2010Type of Publication:ArticleAbstract:It is argued that in structural vector autoregressive (SVAR) analysis a Markov regime switching (MS) property can be exploited to identify shocks if the reduced form error covariance matrix varies across states. The model ...
Title:Structural Vector Autoregressions with Nonnormal Residuals
Author(s):LANNE, Markku; LUETKEPOHL, HelmutDate:2010Type of Publication:ArticleAbstract:In structural vector autoregressive (SVAR) modeling, sometimes the identifying restrictions are insufficient for a unique specification of all shocks. In this paper it is pointed out that specific distributional assumptions ...
Title:Subscription Mechanisms for Network Formation
Author(s):MUTUSWAMI, Suresh; WINTER, EyalDate:2002Type of Publication:ArticleAbstract:We analyze a model of network formation where the costs of link formation are publicly known but individual benefits are not known to the social planner. The objective is to design a simple mechanism ensuring efficiency, ...
Title:Survey Data as Coincident or Leading Indicators
Author(s):FRALE, Cecilia; MARCELLINO, Massimiliano; MAZZI, Gian Luigi; PROIETTI, TommasoDate:2010-01-01Type of Publication:ArticleAbstract:In this paper we propose a monthly measure for the euro area gross domestic product (GDP) based on a small-scale factor model for mixed-frequency data, featuring two factors: the first is driven by hard data, whereas the ...
Title:Suspense: Dynamic Incentives in Sports Contests
Author(s):CHAN, William; COURTY, Pascal; HAO, LiDate:2009Type of Publication:ArticleAbstract:In a dynamic model of sports competition, if spectators care only about contestants' efforts, incentive schemes depending linearly on the final score difference dominate rank order schemes based only on who wins. If ...
Title:Sustainable Social Spending and Stagnant Public Services: Baumol's Cost Disease Revisited
Author(s):VAN DER PLOEG, FrederickDate:2007Type of Publication:ArticleAbstract:If demand for human services is inelastic or manufactured goods are necessities, labor shifts from manufacturing to services and the budget share of services rises. Higher productivity growth in the market sector pushes ...
Title:Synchronic Information, Knowledge and Common Knowledge in Extensive Games
Author(s):BATTIGALLI, Pierpaolo; BONANNO, GiacomoDate:1999Type of Publication:ArticleAbstract:Restricting attention to the class of extensive games defined by von Neumann and Morgenstern (1944) with the added assumption of perfect recall, we specify the information of each player at each node of the game-tree in a ...