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 ...
Title:Test Procedures for Unit Roots in Time Series with Level Shifts at Unknown Time
Author(s):LANNE, Markku; LUETKEPOHL, Helmut; SAIKKONEN, PenttiDate:2003Type of Publication:ArticleAbstract:Two types of unit root tests which accommodate a structural level shift at a known point in time are extended to the situation where the break date is unknown. It is shown that for any estimator for the break date the tests ...
Title:Testing Exact Rational Expectations in Cointegrated Vector Autoregressive Models
Author(s):JOHANSEN, Soren; SWENSEN, Anders RyghDate:1999Type of Publication:ArticleAbstract:This paper considers the testing of restrictions implied by rational expectations hypotheses in a cointegrated vector autoregressive model for I(1) variables. If the rational expectations involve one-step-ahead observations ...
Title:Testing for a Unit Root in a Time Series with a Level Shift at Unknown Time
Author(s):SAIKKONEN, Pentti; LUETKEPOHL, HelmutDate:2002Type of Publication:ArticleAbstract:Unit root tests for time series with level shifts of general form are considered when the timing of the shift is unknown. It is proposed to estimate the nuisance parameters of the data generation process including the shift ...
Title:Testing for PPP: Should we use Panel Methods?
Author(s):BANERJEE, Anindya; MARCELLINO, Massimiliano; OSBAT, ChiaraDate:2005Type of Publication:ArticleAbstract:A common finding in the empirical literature on the validity of purchasing power parity (PPP) is that it holds when tested for in panel data, but not in univariate (i.e. country-specific) analysis. The usual explanation ...
Title:Testing for the Cointegrating Rank of a Vector Autoregressive Process with Uncertain Deterministic Trend Term
Author(s):DEMETRESCU, Matei; LUETKEPOHL, Helmut; SAIKKONEN, PenttiDate:2009Type of Publication:ArticleAbstract:P>When applying Johansen's procedure for determining the cointegrating rank to systems of variables with linear deterministic trends, there are two possible tests to choose from. One test allows for a trend in the cointegration ...
Title:Testing the Expectations Theory of the Term Structure of Interest Rates in Threshold Models
Author(s):CLEMENTS, Michael P.; GALVAO, Ana Beatriz C.Date:2003Type of Publication:ArticleAbstract:We test the expectations theory of the term structure of U.S. interest rates in nonlinear systems. These models allow the response of the change in short rates to past values of the spread to depend upon the level of the ...
Title:Testing the Links between Institutional Integration and Trade Deepening. Clues from Europe
Author(s):AGUR, Itai; DORRUCCI, Ettore; MONGELLI, Francesco PaoloDate:2007Type of Publication:ArticleAbstract:This paper investigates the interaction between institutional integration and trade deepening in the EU over the last 50 years. It uses Granger causality tests, a VECM and variance decompositions to further the understanding ...
Title:The 'price puzzle' in the monetary transmission VARs with long-run restrictions
Author(s):KRUSEC, DejanDate:2010Type of Publication:ArticleAbstract:This study addresses the 'price puzzle' - a positive response of prices to monetary tightening in VAR models. By using long-run instead of the usual short-run restrictions on the US data including output, prices and interest ...
Title:The Akzo Decision - A Case of Predatory Pricing
Author(s):PHLIPS, Louis; MORAS, IMDate:1993Type of Publication:ArticleAbstract:In December 1985, a fine was imposed on the Dutch multinational AKZO for predatory abuse of a dominant position. An appeal by AKZO was rejected by the Court of Justice of the Communities in July 1991. This note suggests ...
Title:The composition of capital flows to South Africa
Author(s):AHMED, F.; AREZKI, Rabah; FUNKE, N.Date:2007Type of Publication:ArticleAbstract:Unlike in most other emerging markets, capital flows to South Africa since the mid 1990s have been heavily biased toward portfolio flows. In this context, the objective of the paper is twofold: to identify the determinants ...
Title:The Determinants of Corporate Risk in Emerging Markets: An Option-Adjusted Spread Analysis
Author(s):CAVALLO, Eduardo A.; VALENZUELA, PatricioDate:2010Type of Publication:ArticleAbstract:This Study explores the determinants of corporate bond spreads in emerging markets economics. Using a largely unexploited data set, the paper finds that corporate bond spreads are determined by firm-specific variables, ...