Title:Comparison of Unit Root Tests for Time Series with Level Shifts
Author(s):LANNE, Markku; LUETKEPOHL, Helmut; SAIKKONEN, PenttiDate:2002Type of Publication:ArticleAbstract:Unit root tests are considered for time series which have a level shift at a known point in time. The shift can have a very general nonlinear form, and additional deterministic mean and trend terms are allowed for. Prior ...
Title:Complex Networks and Local Externalities: A strategic approach
Author(s):VEGA-REDONDO, Fernando; GALEOTTI, AndreaDate:2011Type of Publication:ArticleAbstract:In this paper, we illustrate a new approach to the study of how local externalities shape agents’ strategic behavior when the underlying network is volatile and complex. We consider a large population that interacts as ...
Title:Complexity, Wages, and the O-Ring Production Function: Evidence From Finnish Panel Data
Author(s):PEKKARINEN, TuomasDate:2002Type of Publication:ArticleAbstract:This paper is an empirical study on the effect of complexity of the production porcess on individual hourly wages. According to a model-due to Kremer [Quarterly Journal of Economics 108 (1993) 551] and Dalmazzo [Dalmazzo, ...
Title:Constructing Historical Euro-Zone Data
Author(s):BEYER, Andreas; DOORNIK, Jurgen A.; HENDRY, David F.Date:2001Type of Publication:ArticleAbstract:Existing methods of reconstructing historical Euro-zone data by aggregation of the individual countries' aggregate data raises numerous difficulties, especially due to past exchange rate changes. The approach proposed here ...
Title:Convergence at Last? Evidence From Transition Countries
Author(s):POLANEC, SasoDate:2004Type of Publication:ArticleAbstract:This article reexamines the hypotheses of absolute and conditional convergence for a sample of twenty-five transition countries over the period from 1990 to 2002. After splitting the sample into three four-year periods, ...
Title:Convergence in Monetary Inflation Models with Heterogeneous Learning Rules
Author(s):EVANS, George W.; HONKAPOHJA, Seppo M. S.; MARIMON, RamonDate:2001Type of Publication:ArticleAbstract:Inflation and the monetary financing of deficits are analyzed in a model in which the deficit is constrained to be less than a given fraction of a measure of aggregate market activity. Depending on parameter values, the ...
Title:Country Asymmetries, Endogenous Product Choice and the Timing of Trade Liberalization
Author(s):CABRALES, Antonio; MOTTA, MassimoDate:2001Type of Publication:ArticleAbstract:We analyze the effects of trade liberalization on firms' decisions and profits in a vertical product differentiation model with countries which have different characteristics. Firms decide product specifications at the ...
Title:Credit and Risk in Rural Developing Economies
Author(s):OSBORNE, TheresaDate:2006Type of Publication:ArticleAbstract:This paper examines the theory of credit as a means of raising the productivity and living standards of producer households who face significant uncertainty. A dynamic model with uncertainty is developed in which households ...
Title:Cross-Border Spillovers from Fiscal Stimulus
Author(s):CORSETTI, Giancarlo; MEIER, André; MÜLLER, Gernot J.Date:2010Type of Publication:ArticleAbstract:The global recession of 2008–09 has revived interest in the international repercussions of domestic policy choices. This paper focuses on the case of fiscal stimulus, investigating cross-border spillovers from an increase ...
Title:Cross-sectional Averaging and Instrumental Variable Estimation with Many Weak Instruments
Author(s):KAPETANIOS, George; MARCELLINO, MassimilianoDate:2010Type of Publication:ArticleAbstract:The present paper suggests a new way to carry out IV estimation with many instruments. Our suggestion is to cross-sectionally average the instruments and use these averages as instruments. We provide a theoretical and Monte ...
Title:Cultural Biases in Economic Exchange?
Author(s):GUISO, Luigi; SAPIENZA, Paola; ZINGALES, LuigiDate:2009Type of Publication:ArticleAbstract:How much do cultural biases affect economic exchange? We answer this question by using data on bilateral trust between European countries. We document that this trust is affected not only by the characteristics of the ...