Showing papers in "European Economic Review in 1995"

TL;DR: In this paper, a model is presented based on recent theories of economic growth that treat commercially oriented innovation efforts as a major engine of technological progress, and the authors study the extent to which a country's total factor productivity depends not only on domestic R&D capital but also on foreign capital.

TL;DR: In this paper, the authors investigated regional labor market dynamics in Europe and compared the results to those obtained for the US and found that a larger proportion of movements in employment growth is common to all US states than to all EEC regions.

TL;DR: In this article, an equilibrium model of the allocation of talent between productive and unproductive activities (such as rent-seeking) is developed, where the existence of rentseeking creates a negative externality on productive agents and implies that relative rewards are endogenously determined.

TL;DR: In this paper, the authors present a framework of investigation into the political economy of the budget process, and they suggest that institutional rules can be found to limit the importance of fiscal illusion.

TL;DR: This article analyzed long-term and short-term responses to regional business cycles in the United States and Canada using tax and transfer data, and found that the redistributive effect is larger than the stabilization effect in both countries.

TL;DR: In this paper, a dynamic model that is consistent with the main empirical regularities of economic fluctuations in open economies is presented, where a simple class of time separable preferences is used to generate a realistic consumption volatility.

TL;DR: In this paper, the authors compare two polar extremes of the structure of financial systems in different countries: the German model and the U.S. model, where intermediaries predominate.

TL;DR: In this article, the authors present a third approach and show how different stochastic specifications of the same deterministic "core" theory may generate very different (and sometimes surprising) hypotheses.

TL;DR: In this article, the authors argue that negative shocks to aggregate demand reduce the ability of firms to service their debts to banks, and this reduction in debt service lowers bank equity, and, because of capital adequacy requirements, this in turn reduces bank lending and industry investment.

TL;DR: In this article, a hedonic price function for wine is estimated using Swedish data, 1989-1991, and implicit prices for quality attributes are determined not from a regression of variety price on a vector of quality attributes, but rather from regression of quantity sold (adjusted for weeks of availability) on price and quality attributes.

TL;DR: In the absence of sunk costs, a low quality producer benefits from a mildly restrictive quality standard whereas a high quality producer suffers from it as discussed by the authors, and consumers' welfare increases if the firm producing the higher quality does not increase its quality significantly in response to the increase in quality by its rival.

TL;DR: In this article, the authors analyze the concept of responsibility and the way it appears in economic theory and in egalitarian theories of justice and identify two general principles (natural reward, and compensation) which inspire many arguments and axioms in theories based on responsibility.

TL;DR: In this article, the authors investigate the consequences of the regulation of rates paid on deposits and show that in a regulated environment, the effectiveness of monetary policy is reduced in the sense that fluctuations of money market rates are less than fully transmitted in credit rates.

TL;DR: In this paper, the authors present a model of growth based on innovation, where high-tech firms cover the fixed cost of R and D out of operating profits and sell output in a market with imperfect competition.

TL;DR: This paper surveys the assumptions that have been employed in previous analyses of experimental data, and tries to find better explanations of such errors, to lead to a unified theory, in which the stochastic component is an integral part.

TL;DR: In this paper, the authors examine the prospects and problems of Eastern enlargement and argue that considerations of stability and long run prosperity are the primary reasons why the EU has promised to enlarge eastward and why the Central and Eastern European nations wish to join.

TL;DR: In this paper, a distinction is made between human capital depreciation related to a worker's aging and depreciation due to the obsolescence of the worker's education, which is incorporated in the Mincerian model of earnings.

TL;DR: This article showed that there is no job competition between unemployed workers with an academic and a higher vocational education in the Netherlands, and that there are no job competitions at lower levels of education.

TL;DR: In this paper, the authors look for relationships between art and financial markets through econometric methods and find that financial markets influence the art market, with a lag of about one year.

TL;DR: In this article, the authors analyzed the cost of trading French shares on two exchanges, the Paris Bourse and London's SEAQ International, using a large data set consisting of all quotes, limit orders and transactions for a two month period.

TL;DR: In this article, the authors estimate a small sectoral VAR model of the UK macroeconomy, which is then used to simulate the effects of an exogenous monetary policy shock upon asset prices, bank balance sheet variables and final target variables (activity and prices), for the personal and corporate sectors.

TL;DR: In this paper, two popular selling methods, bargaining and posted-price selling, are compared in a dynamic model and it is shown that when bargaining costs no more than posted price selling, bargaining is always optimal.

TL;DR: This paper analyzed the relationship between stock returns and real activity from the point of view of a general equilibrium, multicountry model of the business cycle and found that there is a relationship between domestic output growth and domestic stock returns which becomes stronger when foreign influences are considered.

TL;DR: In this paper, the authors discuss determinants of psychic benefits and suggest rental fees and willingness to pay studies as a possible way to analyze and estimate the psychic benefits from art, in the few cases they are considered at all, derived from the difference to financial returns on other markets.

TL;DR: In this paper, the authors define the class of regular-flexible functional forms as cost functions which are globally wellbehaved and can provide a local approximation to any globally well-behaved cost function.

TL;DR: In this article, an overlapping generations model is constructed in which individual wealth is related to educational attainment, and in which liquidity constraints may induce children to invest in a sub-optimal level of education given their ability.

TL;DR: In this paper, the authors construct a partial equilibrium model of intra-industry crosshauling DFI with unionized duopoly, where wages and employment are determined through Nash bargaining between firms and national labor unions.

TL;DR: In this paper, the authors examined the correlation of output innovations at the industry and country levels, and discussed to what extent output innovations can be considered "symmetric" or "asymmetric".

TL;DR: In this article, price advertising in an oligopoly market where consumers have only local price information is studied and the random advertising equilibrium approaches the equilibrium under perfect price information when the cost of advertising becomes small.

TL;DR: In this paper, the authors investigated the implications of growth for the scope of integration and the internal organization of firms and stressed the role of headquarters' overload and the differential cost of internal and external units in terms of their use of a scarce corporate resource, namely headquarters attention.