Showing papers in "European Economic Review in 1993"

TL;DR: In this article, the authors propose an alternative empirical framework to study the dynamics and determinants of economic growth, which can be misleading if important, underlying permanent or growth components are stochastically time-varying.

TL;DR: In this article, the authors investigate whether financial development (especially stock market development) affects the level and/or the growth rate of economic activity and find that it has a substantial effect on both.

TL;DR: In this paper, the authors propose a new approach to modeling urban systems based on a monopolistically competitive general equilibrium model, which is similar to those now widely used in trade and growth theory, with an added spatial dimension.

TL;DR: In this article, the authors argue that most compensation arrangements involve superiors' subjectire and hence non-contractible judgements about employee performance and propose the importance of subjectivity of evaluations to better understand organizatlonal practices such as politicking, favoritism and compression of wage scales.

TL;DR: In some countries the size of the stock market and the number of listed companies have persistently lagged behind the growth of the economy and trading externalities can help explain this fact.

TL;DR: In this paper, the cross-country bivariate correlation between unemployment and growth can be either positive or negative depending on the source of the differences in economic structures across countries, and they also present a two-sector variant of the model in which there is imperfect competition in consumption goods production.

TL;DR: Determinants of the propensity to migrate are explored using data collected in a survey of East German residents following German reunification in 1991, and recent developments in the literature on the option value of waiting may yield important insights into these determinants.

TL;DR: This paper showed that there are segments in the market for which returns are significantly higher than returns on bonds and stocks, during long periods of time (20 to 40 years); since tastes do change slowly (though not in a predictable way), this may imply that beating the market is not impossible.

TL;DR: In this paper, the authors used semi-structural vector autoregression to disentangle the trend from the cycle and found that there tends to be a negative impact of demand shocks on productivity, both in the short-run and in the long-run.

TL;DR: It is concluded that restrictive trade policies in industrialised countries have most likely added to migration pressures and the relationship between development levels, as measured by GDP per capita, and the propensity to migrate follows an inverse-U pattern.

TL;DR: In this article, a monopolistic competition model with price adjustment costs, affected by technological and monetary shocks, better mimics the economic fluctuations in two countries with very different cyclical properties, namely France and the United States.

TL;DR: In this article, the authors show that British data on savings and investment are uncorrelated, consistent with the hypothesis of perfectly mobile intra-national capital flows, and show that the hypothesis is false.

TL;DR: In this paper, the authors analyzed the wage structures in both sectors, using an endogenous switching regression model, and found that the earnings prospects of public sector workers are better in the public sector than in the private sector.

TL;DR: The authors examines portfolio choice and asset pricing when some assets are nontraded, for instance when a country cannot trade claims to its output on world capital markets, when a government can not trade claims on world markets.

TL;DR: In this paper, the authors argue that the major impact of the RBC literature has been to propose a new methodology for macroeconomics, which is distinguished by the importance it attributes to the empirical description of the phenomena to be explained and, second, by the use of this description in conjunction with quantitative theorizing, i.e., the construction of computable general equilibrium models whose characteristic statistics match those of the data.

TL;DR: In this article, the authors presented estimates of devaluation expectations for six ERM currencies relative to the Deutsche mark, for the period March 1979-April 1992, using both the simple test and the drift adjustment method.

TL;DR: The main obstacle to the development of such a framework is our habit of thinking in terms of frictionless, organized, i.e. Walrasian markets as discussed by the authors, which is a problem that needs to be solved rather than one that has been solved.

TL;DR: For 13 years from 1979 to 1991, economic reforms in China have generated a significant growth: its GNP grew at an average annual rate of 8.7';/,, or at 7.37' for per capita GNP as discussed by the authors.

TL;DR: In this paper, the authors apply the notions of reciprocity and overjustification to a specific employment relationship and apply them to a general employment relationship, and show that they are consistent with empirical observations.

TL;DR: In this paper, the authors study the movements in equity prices caused by variation over time in uncertainty about corporate dividends and find that risk premiums on levered equity are a monotonically increasing function of junk bond yield spreads.

TL;DR: In this article, the authors developed a new nonstructural model of wage and price adjustment that integrates several concepts that have often been treated separately, including Phillips curve "level effects", hysteresis "change effects", the error-correction mechanism, and the role of changes in labor's share that act as a supply shock.

TL;DR: This article presented estimates of devaluation expectations for six ERM currencies relative to the Deutsche mark, for the period March 1979-April 1992, using both the simple test and the drift adjustment method.

TL;DR: In this article, the authors argue that both private pecuniary gains and social influences affect the individuals' union membership decisions, citing evidence in support of these basic assumptions, and show that stable intermediate union density is a possible equilibrium outcome in a generalised social custom model.

TL;DR: In this article, the authors consider microeconomic heterogeneity and its interaction with nonlinear microeconomic price adjustment policies, and they find that the aggregate price level responds less to negative shocks than to positive shocks.

TL;DR: In this paper, the authors investigate the long-run spatial impact of an economic integration, and propose an economic theory which can explain the formation and change of hierarchical city system in an economy.

TL;DR: This article study consumption-based asset pricing models which allow for both habit persistence and durability of consumption goods, using quarterly consumption and asset return data for six countries, and find that time-nonseparable preferences improve the fit of the model.

TL;DR: In this paper, the authors examined hedging behavior in an incomplete market in which there exists an unhedgeable and uninsurable independent background risk and found that the speculative component of the hedge ratio is reduced in the presence of background risk.