Showing papers in "European Economic Review in 1997"

TL;DR: In this paper, the central bank's inflation forecast becomes an explicit intermediate target, and the weight on output stabilization determines how quickly the inflation forecast is adjusted towards the inflation target, leading to higher inflation variability.

TL;DR: In this paper, the authors investigate the role of three external factors in generating improved productivity performance in companies, i.e., product market competition, financial market pressure and shareholder control.

TL;DR: This article examined the relationship of the term structure of interest rates to monetary policy instruments and to subsequent real activity and inflation in both Europe and the United States, and found that monetary policy is an important determinant of term structure spread, but is unlikely to be the only determinant.

TL;DR: A country's suitability for EMU entry depends on the intensity of trade with EMU members, and the extent to which its business cycles are correlated with those of other members as discussed by the authors.

TL;DR: The authors compare the ability of sticky price and limited participation models with frictionless labor markets to account for these facts, and show that the sticky price model can account for all the above facts, but only if one is willing to assume a high labor supply elasticity and a high markup.

TL;DR: The authors developed a procedure for applying the core implications of the theory of optimum currency areas, and find that the relationship between OCA characteristics and the observed behavior of exchange rates seems sufficiently to support simple forecasting.

TL;DR: In this article, the authors extended Coe and Helpman's (International R&D spillovers, European Economic Review, 39, 859-887, 1995) study by including a general human capital variable which accounts for innovation outside the R&DM sector and other aspects of human capital not captured by formal R&DI.

TL;DR: In this article, the authors analyse the relationship between product market competition and growth in a model with step-by-step innovations, where laggards can never leapfrog the current industry leaders, but instead must first catch up with the leaders before battling for technological leadership in the future.

TL;DR: The authors argue that the lack of turnover of old communist politicians, and the creation of inappropriate electoral and fiscal incentives for these politicians, may account for the poor performance of the Russian government, and suggest some strategies for improving the situation.

TL;DR: This article showed that relative wage compression is conducive to higher employer-initiated job turnover, and argued that wagesetting institutions and job-security provisions differ across countries in ways that are both consistent with rough uniformity of job turnover statistics and readily explained by intuitive theoretical considerations.

TL;DR: In this paper, regional and national fluctuations within the European Union and how the process of integration and the creation of the EMS has affected these patterns are analyzed. And the results indicate that national borders have seen their economic significance reduced over time as the process has increased cross-border correlations and reduced within-border comovements.

TL;DR: In a recent article as discussed by the authors, Wasserfallen and Wittleder reassess the evidence on underpricing in Germany, after choosing a different risk proxy to avoid potential endogeneity problems, and provide evidence of long-run IPO performance.

TL;DR: In this article, the authors show that, holding constant the current forecast of inflation, German monetary policy responds very little to changes in forecasted money growth; they conclude that the Bundesbank is much better described as an inflation targeter than as a money targeter, and apply the structural VAR methods of B. Bernanke and I. Mihov (measuring monetary policy, working paper no. 5145, National Bureau of Economic Research, Cambridge, MA, June 1995).

TL;DR: In this article, the authors re-examine the empirical relationship between stock markets and economic growth and find no hard evidence that the level of stock market activity helps to explain growth in per capita output.

TL;DR: This paper investigated the causes behind the low and falling mobility levels in (Southern) Italy and argued that a combination of demographic factors, high mobility costs and inefficiencies in the job matching process may account for the fall in interregional migration.

TL;DR: In this article, the authors consider a market in which a public firm competes against private ones, and ask what happens when the public firm is privatized, and they conclude that privatization is harmful because prices rise: the disciplinary role of the public firms is lost.

TL;DR: A survey of applied work with auction data can be found in this article, where the authors summarize the pre-game theoretic competitive bidding literature based on decision theory and the associated empirical work, centered essentially around the winner's curse debate.

TL;DR: In this paper, the effects of European integration in the EC and EFTA on economic growth were investigated, and the results indicated that regional integration may not only affect resource allocation, but also long-run growth rates.

TL;DR: In this article, the impact of new technologies on wages using a unique data set that matches data on individuals and on their firms was studied. But the authors did not give a definitive answer to the following question: if workers who use NT are better paid, is it because they are abler or because NT increases their productivity.

TL;DR: In this paper, the main causes of Spanish unemployment were reviewed and weighted by estimating a simple macroeconomic model using the structural VAR methodology, and the results suggest that the combination of a plausible mixture of different types of shocks and extreme persistence in their propagation mechanisms can satisfactorily explain the dismal performance of the Spanish labour market during the last two decades.

TL;DR: The authors surveys analysis of the relationship between regional unemployment and labour mobility in the UK and finds that the relative growth of personal sector mortgage indebtedness in that region and greater consumption demand sensitivity to interest rate shocks explains the recent rise in the volatility of unemployment in the high wage region of the South East.

TL;DR: This paper examined the role of labour market institutions in explaining the evolution of the wage structure in Britain and found that their weakening has played an important part in the rise in wage inequality in Britain.

TL;DR: In this paper, the effects of competition policy and industrial policy on the rate of technological change are investigated in a Schumpeterian model with profit-maximising firms. And the authors show that these effects can be reversed when agency problems within innovating firms become sufficiently important.

TL;DR: In this paper, the authors specify a model in which a firm may face fixed, linear, and convex costs of investing, and estimate the resulting investment function using firm-level data from 11 countries.

TL;DR: In this paper, the English electricity industry demonstrates the importance of entry conditions and contracts and the gains from restructuring are estimated, and the benefits of privatisation for the electricity industry are discussed.

TL;DR: In this article, the authors present a stylised model in which raising the nominal interest rate helps to maintain the parity, but is costly for the government, which in turn reinforces the speculation against the currency.

TL;DR: In this article, the authors argue that it is impossible to understand the East Asian growth miracle without appreciating the importtant role that government policy played in stimulating private investment, and they provide some evidence that the government's social insurance role creates a complementarity between states and markets.

TL;DR: In this article, the authors provide a theoretical framework to analyse the response of life time maximizing consumers to intertemporal prices of non-durable goods and durable goods when the borrowing limit depends on the market value of the stock of durables owned by the consumer.

TL;DR: In this paper, the authors summarized existing hard evidence concerning the changing value of human capital in Slovenia's transition to a market system and investigated changes in patterns of job mobility and changes in the structure of wages associated with education, experience, gender, and ethnicity.

TL;DR: In this paper, the authors developed a model in which the insurance sector may insure the firm for the pollution risk and the bank may lend money for investment under complete information of the bank about the firm's activities.