Title:Regime Switching Interest Rates and Fluctuations in Emerging Markets
Author(s):GRUSS, Bertrand; MERTENS, KarelDate:2009Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We estimate regime switching models for emerging market interest rates and embed the obtained nonlinear dynamics in a small open economy model with a financial friction. We show that the presence of an infrequent regime ...
Title:The Reliability of Real Time Estimates of the EURO Area Output Gap
Author(s):MARCELLINO, Massimiliano; MUSSO, AlbertoDate:2010Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:This paper provides evidence on the reliability of euro area real-time output gap estimates, including those provided by the IMF, OECD and EC and a set of model based measures. A genuine real-time data set is used, including ...
Title:Rent Seeking, Market Structure and Growth
Author(s):BROU, Daniel; RUTA, MicheleDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We construct a model where firms compete in both political and economic markets. In political markets, firms compete for influence over government transfer policy (rents). This activity can be beneficial for the firm, but ...
Title:Resolving the African Financial Development Gap: Cross-country comparisons and a within-country study of Kenya
Author(s):ALLEN, Franklin; CARLETTI, Elena; CULL, Robert; QIAN, Jun; SENBET, Lemma; VALENZUELA, PatricioDate:2012Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:With extensive country- and firm-level data sets we first document that the financial sectors of most sub-Saharan African countries remain significantly underdeveloped by the standards of other developing countries. We ...
Title:Responsive Pricing
Author(s):COURTY, Pascal; PAGLIERO, MarioDate:2003Type of Publication:Working PaperSeries/Report no.:Discussion Pape
Title:Revenue Comparison in Asymmetric Auctions with Discrete Valuations
Author(s):DONI, Nicola; MENICUCCI, DomenicoDate:2011-01-01Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We consider an asymmetric auction setting with two bidders such that the valuation of each bidder has a binary support. We prove that in this context the second price auction yields a higher expected revenue than the first ...
Title:The Right Amount of Trust
Author(s):BUTLER, Jeffrey V.; GIULIANO, Paola; GUISO, LuigiDate:2009Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:A vast literature has investigated the relationship between trust and aggregate economic performance. We investigate the relationship between individual trust and individual economic performance. We find that individual ...
Title:Risk Aversion, Wealth, and Background Risk
Author(s):GUISO, Luigi; PAIELLA, MonicaDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a consumer is willing to pay for a risky security. We relate this measure to consumers.endowments and attributes ...