Showing papers in "European Economic Review in 1998"

TL;DR: This paper found that since 1979 each of the G3 central banks has pursued an implicit form of inflation targeting, which may account for the broad success of monetary policy in those countries over this time period.

TL;DR: In this article, a Monte-Carlo-based robustness test is proposed which compares the elasticity of domestic productivity with respect to foreign R&D estimated by Coe and Helpman with an elasticity which is based on counterfactual international trade patterns.

TL;DR: In this paper, the authors try to demonstrate how economists may engage in research on comparative politics, relating the size and composition of government spending to the political system, and find strong and robust support for the prediction that the size of government is smaller under presidential regimes, and weaker support that majoritarian elections are associated with less public goods.

TL;DR: In this article, a model is proposed to explain why governments in unstable and polarized societies may not have sufficient incentives to undertake legal reform so as to fully protect property rights, and how this may hold back private investment.

TL;DR: A large number of studies suggest that reciprocity constitutes a basic motivational drive and that it can explain why wages are downwardly rigid, giving rise to noncompensating wage differentials and to a positive correlation between profits and wages as mentioned in this paper.

TL;DR: In this paper, the authors present new survey evidence on the behavior of small individual investors who manage their own equity portfolios and find naive patterns in past price movements, share popular models of value, are not properly diversified, and trade in suboptimal ways.

TL;DR: Coe and Helpman as discussed by the authors re-examine two features of their econometric model and suggest an alternative weighting scheme that is theoretically much less biased and yields somewhat better empirical results, and generalise their empirical framework by analysing how the output elasticity of foreign R&D depends on a country's openness to trade.

TL;DR: Ainslie et al. as discussed by the authors showed that discount functions are approximately hyperbolic, which explains a wide range of empirical anomalies including missing precautionary savings effects, incongruence between the elasticity of intertemporal substitution and the inverse of the coefficient of relative risk aversion.

TL;DR: In this paper, the authors use a classroom game, the ''Wallet Game'' to show that slight asymmetries between bidders can have very large effects on prices in standard ascending auctions of common-value objects.

TL;DR: In this article, the effects of employment tax cuts on unemployment and wages in four equilibrium models: competitive, union bargaining, search and efficiency wages, and competitive and union bargaining with a fixed ratio of unemployment compensation to wages.

TL;DR: In this article, the authors report the results of experiments which do not rule out reciprocal interactions between buyers and sellers and show that reciprocity motives may indeed be capable of driving a competitive experimental market permanently away from the competitive outcome.

TL;DR: In this article, a survey combines ideas and results from sociology and economics, recognizing that economic decisions are often shaped by social concerns and influences, and defining social status and describing its measurement.

TL;DR: In this paper, the authors interviewed over 300 business people, labor leaders, business consultants, and counselors of unemployed people, all in the Northeast of the United States, during the recession of the early 1990's in order to learn why wages and salaries declined in only a few firms.

TL;DR: In this article, the authors draw conclusions about the bounded rationality exhibited by human economic behavior, including presentation effects caused by superficial analysis, strategic reasoning and strategy construction based on reciprocity and fairness, avoidance of circular concepts in step by step strategic reasoning, ex-post rationality and learning direction theory, presence of both adaptive and analytic approaches to repeated decision tasks, and the absence of quantitative expectations and optimization in typical repeated game strategies.

TL;DR: In this paper, the authors evaluate VAR models designed to analyse the monetary policy transmission mechanism in the United States by considering three issues: specification, identification, and the effect of the omission of the long-term interest rate.

TL;DR: The authors discuss the advantages and disadvantages of modelling social concerns in this way and provide examples that illustrate how concerns for relative standing can affect savings, investment, and labor choice decisions, even when there is no similar concern in the ''deep' preferences.

TL;DR: In this article, the authors present empirical results on moral hazard in demand for medical care, using a longitudinal dataset on 4578 individuals followed during two years, and test if the number of visits per agent was modified by this copayment rate.

TL;DR: The authors developed a theoretical framework in which international trade occurs between economies with imperfectly competitive product markets and unionised labour markets and investigated the impact on both product and labour market outcomes of increased product market integration across the trading economies.

TL;DR: In this paper, the authors explore non-equilibrium theories in which equilibrium emerges as the long-run outcome of a dynamic process of adjustment or learning, and focus on individual level models, and more specifically on variants of ''fictitious play'' in two-player games.

TL;DR: In this paper, the authors propose and solve a stochastic search model with endogenous job separation and show that the amplitude and time variation of job reallocation depend crucially upon the arrival rate of exogenous firing permissions.

TL;DR: In this article, the main focus is on efficiency of privately owned, municipal utilities, municipal companies, and companies with mixed ownerships, and they find evidence of scale economies and technical progress.

TL;DR: In this paper, the sensitivity of results to various specification and identification assumptions was investigated, and the standard switching regression model was extended to allow for endogeneity of education level, experience, and hours worked.

TL;DR: In this paper, it was shown that the implicit choice of a particular value for a crucial parameter can result in too much research in a model of endogenous growth with expanding product variety.

TL;DR: In this article, the authors discuss mechanisms and strategies aimed at offsetting the incentives to free ride and increasing welfare, such as transfers, issue linkages, threats and multiple agreements.

TL;DR: In this article, the authors estimate the empirical bimodal cross-section distribution of real Gross Domestic Product per capita of 120 countries over the period 1960-1989 by a mixture of a Weibull and a truncated normal density.

TL;DR: In this article, the authors studied whether exchange rate expectations and overvaluations are predictors of currency crises and found that overvaluation has predictive power in explaining the crises, although expected depreciation obtained from survey data partially takes different exchange rate misalignment measures into consideration, expectations fail to anticipate currency crises.

TL;DR: In this article, the authors studied determinants and consequences of sharp reductions in current account imbalances (reversals) in low and middle-income countries, and found that both domestic variables, such as the current account balance, openness and the level of reserves, and external variables such as terms of trade shocks, US real interest rates, and growth in industrial countries, seem to play an important role in explaining reversals in current-account imbalance.

TL;DR: In this paper, the concept of a semiflexible functional form is applied to the Almost Ideal (AI) demand system, which yields a demand model that is more parsimonious than standard ones while preserving a degree of flexibility, that satisfies the curvature property of concavity of the underlying expenditure function (at least locally), and that preserves the desirable properties of the AI model.

TL;DR: In this article, a linear endogenous growth model with a very simple model of government spending and taxation, in the presence of political instability, was proposed to account for both empirical correlations and the model predicts that both correlations are intimately linked.