Showing papers in "European Economic Review in 1999"

TL;DR: In this article, the authors consider the effect of the composition of economic activity on innovation and test whether the specialization of economic activities within a narrow concentrated set of activities is more conducive to knowledge spillovers or if diversity, by bringing together complementary activities, better promotes innovation.

TL;DR: In this paper, the authors developed an analytical framework to assess the effect of FDI on local firms in the same industry and showed that FDI may lead to the establishment of local industrial sectors.

TL;DR: In this paper, the relative location of different income groups depends on the spatial pattern of amenities in a city, and when the center has a strong amenity advantage over the suburbs, the rich are likely to live at central locations.

TL;DR: This paper studied the relationship between the degree of regional integration and regional differences in production structures and income levels and found that workers migrate towards locations with more firms and higher real wages, this intensifies agglomeration.

TL;DR: In this paper, the effects on technology transfer and spillovers deriving from ownership sharing of foreign multinational affiliates were examined using unpublished Indonesian micro data, and the results showed that foreign establishments have comparable high levels of labor productivity and that domestic establishments benefit from spillovers.

TL;DR: In this paper, a model of endogenous growth and endogenous industry location where the two interact is presented. But with global spillovers in RD O30, R12, and RD O16, the model is not robust enough.

TL;DR: In this paper, the authors proposed an evolutionary approach which combines a general equilibrium model with an adjustment dynamics to overcome the multiplicity of equilibria, and demonstrated that as the economy's population size increases gradually, the urban system self-organizes into a highly regular hierarchical system.

TL;DR: In this paper, the authors develop an interpretation of the Asian meltdown focused on moral hazard as the common source of overinvestment, excessive external borrowing, and current account deficits, and propose a solution to satisfy solvency, possibly involving recourse to seigniorage revenues.

TL;DR: In this paper, the authors use a framework that nests an increasing returns model of economic geography featuring "home market e-ects" with that of Heckscher-Ohlin to account for the structure of regional production in Japan.

TL;DR: In this article, the authors summarize a few useful methods and show how they can be combined with a Kalman filter to estimate the deep model parameters with maximum likelihood, and simulate a macro model with staggered price setting, interest rate elastic output, and optimal monetary policy.

TL;DR: This article explored the relative importance of host country labour institutions and agglomerations using an industry-level panel data set on the location of investments by US multinational firms in Europe and found that centripetal and centrifugal forces are both important.

TL;DR: In this paper, a conceptual framework is proposed to investigate the effects of central bank independence, of the degree of centralization of wage bargaining and of the interaction between those institutional variables, on real wages, unemployment and inflation.

TL;DR: In this article, the authors studied the simplest formulation of the general screening model and provided a complete solution to this case, and showed how this model can be applied to multi-product nonlinear pricing and to multiproduct monopoly regulation.

TL;DR: In this article, the European Corporate Governance Network (ECGN) showed an extraordinarily high degree of concentration of shareholder voting power in Continental Europe relative to the U.S. and U.K.

TL;DR: In this paper, the consequences of falling transport costs for intermediate goods, and how this leads to the spatial fragmentation of production are examined, and the authors show that firms divide their production between countries and become either vertical multinationals or horizontal multinationals, depending on the factor intensity of the activities that relocate.

TL;DR: In this paper, the authors investigated the impact on company behaviour of increases in financial pressure and found that an increase in this measure has a large negative effect on employment controlling for current and expected wages and demand.

TL;DR: In this paper, the authors provide a ranking of European economics institutions and countries based on publications in a core set of 10 economic journals from 1991 to 1996 and find that the three leading universities in Europe are the London School of Economics, Tel-Aviv University and Oxford University while the three top-ranked countries are the U.K., France and Israel.

TL;DR: The authors obtained point estimates with associated confidence bands of the EMU-wide output gap using UC models and showed that reacting to the gap may be optimal, even if the central bank cares solely about inflation.

TL;DR: In this paper, a model is developed which can account for the coexistence of strict employment security regulations, significant job-to-job shifts and high long-term unemployment rates in these countries.

TL;DR: The authors analyzes the institutional conditions under which policymakers can credibly commit to an independent central bank and thereby mitigate the well-known time consistency problem in monetary policy, and shows that granting independence via a statute is only credible for legislative systems with at least two heterogeneous decision-making bodies which both have veto rights (for example bicameral systems).

TL;DR: In this paper, the authors present a simpler model where agglomeration stems from demand-linked forces arising from endogenous capital with forward-looking agents, and the model's simplicity permits many analytic results (rare in economic geography).

TL;DR: In this paper, the contribution of increased earnings inequality to the surge in overall income inequality between 1979 and 1996 is estimated and the direct contribution is surprisingly modest, even if male and female earnings inequality had remained unchanged at their 1979 levels, about two thirds of the observed increase in overall U.S. inequality would have occurred.

TL;DR: The authors analyzed the factors determining the scale and location of Japanese foreign direct investment (FDI) over the 1980s using a pooled cross-section time-series annual data set covering investment in the individual EC countries and the United States and found that investment was significantly influenced by trade protection measures, and in particular by the level of anti-dumping actions initiated in the last decade.

TL;DR: In this article, the joint effects of centralization of wage setting and central bank conservatism on economic performance were studied, and it was shown that in relatively centralized labor markets employment and output are decreasing, and inflation is intially increasing and then decreasing, in the degree of central bank conservative.

TL;DR: In this article, the effects of the limited protection of minority shareholders on the extent to which companies in pyramidal groups succeed in raising external finance and investigate how internal capital markets work in pyramid groups.

TL;DR: In this article, a variety of electoral systems are reviewed, and the impact of post-electoral bargaining on party structure in presidential and parliamentary systems is discussed, to predict the number of serious candidates.

TL;DR: This paper investigated the plausibility of an inverse relationship between inflation and real returns and found that inflation and nominal equity returns are negatively correlated or uncorrelated for all low-to moderate inflation economies examined.

TL;DR: In this paper, the authors show that the observed co-movements of housing prices and owner occupancy rates can be explained as an equilibrium response to income and credit market shocks, and suggest that the financial liberalisation of the early 1980s was crucial for the unparalleled increase in the owner occupancy rate of young households during the boom.

TL;DR: This article studied the effect of management turnover on changes in enterprise performance, using a cross-section of 706 Czech firms over the 1993-1997 period, and found that the appointment of new managers is associated with improvements in profit margins and labor productivity, particularly if those managers were selected by private owners.