Showing papers in "European Economic Review in 2002"

TL;DR: The authors showed that monetary incentives may back-fire and reduce the performance of agents or their compliance with rules, and that these motives may generate very powerful incentives themselves, such as desire to reciprocate or the desire to avoid social disapproval.

TL;DR: The authors used a large annual panel data set covering 217 countries from 1948 through 1997 during which a large number of countries left currency unions; they experienced economically and statistically signi4cant declines in bilateral trade, after accounting for other factors.

TL;DR: In this article, the authors estimate agglomeration effects for France, Germany, Italy, Spain, and the UK, taking into account endogeneity of the spatial distribution of employment and spatial fixed effects.

TL;DR: In this article, a simple model of the incentives to commit crimes is proposed, which explicitly considers possible causes of the persistence of crime over time (criminal inertia), and a panel-data based GMM methodology is used to estimate a dynamic model of national crime rates.

TL;DR: In this article, the authors provide the first systematic empirical analysis of aid and policy reform in the post-conflict growth process, based on a comprehensive data set of large civil wars and cover 27 countries that were in their first decade of postconflict economic recovery during the 1990s.

TL;DR: In this article, the authors derive a poverty-efficient allocation of aid and compare it with actual aid allocations, and find that the actual allocation is radically different from the poverty efficient allocation, for a given of poverty, aid tapers in with policy reform.

TL;DR: In this article, a perspective on the trend towards integrating psychology into economics is provided, and arguments are provided for why movement towards greater psychological realism in economics will improve mainstream economics. But the authors do not discuss the role of psychology in economic forecasting.

TL;DR: In this paper, the authors contribute to the analysis of tacit collusion in Bertrand supergames with (asymmetric) capacity constraints and, from a more applied perspective, bring a new light on merger analysis and provide useful guidelines for competition policy, taking into account dynamic aspects of competition.

TL;DR: In this paper, the authors discuss the auctions in the UK, Netherlands, Germany, Italy, Austria, Switzerland, Belgium, Greece and Denmark, and discuss the sequencing of the auctions.

TL;DR: This article found that negative intentionality matters more than positive intentionality in the hot response game, and that a self-serving attributional style may be responsible for the observed phenomenon in the Hot Response Game, where participants are 67% more likely to reciprocate an intentional hurtful choice over an unintentional helpful choice.

TL;DR: In this article, the authors investigate the sources of convergence across the Spanish regions and develop and estimate a descriptive growth model that allows for factor accumulation, technological diffusion, rate effects from human capital and unobserved regional factors.

TL;DR: This paper examined how Dartmouth College seniors use social networks to obtain their first jobs and found that the use of social networks differs for men and women and for white and nonwhite students, and that students who network with fraternity and sorority members and alumni are the most likely to obtain high paying jobs.

TL;DR: In this paper, the determinants of peoples' perceptions of their economic welfare in an unusually rich socioeconomic survey were studied, and insights were obtained into how objective data should be weighted in assessing economic welfare.

TL;DR: This article investigated the impact of 20th-century European colonization on growth and found that colonial heritage, as measured by the identity of the metropolitan ruler and by the degree of economic penetration, matters for the heterogeneity of growth performances in Africa.

TL;DR: This article argued that the current inflation targeting should be modeled as a commitment to a targeting rule (a rule specifying operational objectives for monetary policy or a condition for the target variables), rather than as a simple instrument rule (like a Taylor rule).

TL;DR: The authors investigated the relationship between process and product RD and found that Bertrand firms have a stronger incentive for product RD, whereas cooperation in product RD promotes both types of R&D relative to competition.

TL;DR: This paper provided a systematic empirical analysis of the effects of take-over and merger activity on firm employment in the United Kingdom using a specially constructed database for the period 1967-1996, finding that significant rationalisations in the use of labour occur as firms reduce joint output and increase efficiency post-merger.

TL;DR: In this paper, the authors show that a slightly modified Solow productivity residual measures changes in economic welfare, even when productivity and technology differ because of distortions such as imperfect competition, and that aggregate data can be used to measure changes in welfare.

TL;DR: In this paper, the authors present an empirical study of the effect of foreign multinational companies on the development of indigenous firms in the host country, based on the literature on entry in industrial organisation, they estimate empirically a model describing the entry of Irish firms using data for the Irish manufacturing sector.

TL;DR: In this paper, the European Commission's attempt to update the Electricity and Gas Directives to underwrite unbundling and full liberalisation coincides with the California electricity crisis, arguing that compared to the US, much of the EU lacks the necessary legislative and regulatory power to mitigate generator market power.

TL;DR: In this paper, the authors show that the sector bias of skill-biased technical change (SBTC) can help explain changing skill premia within countries within countries in recent decades.

TL;DR: In this article, the authors formulate the question of whether an organization should hire people with similar backgrounds or with different backgrounds within the framework of team theory and show that the sign of complementarity between jobs determines workforce homogeneity.

TL;DR: In this article, the authors consider a procurement problem in which the procurement agent is supposed to allocate the realization of a project according to a competitive mechanism that values bids in terms of the proposed price and quality.

TL;DR: In this article, the authors discuss the definition of IT, the role of preconditions for IT, and the use of intermediate exchange rate targets, and specification of inflation targets for emerging market and transition economies.

TL;DR: In this paper, the authors argue that given its extensive control possibilities, experiments are well suited to show the potential existence of social interaction effects, and they present an experimental study where people can engage in "criminal" activities.

TL;DR: The authors compare the relative performance of monetary targeting and inflation targeting and show that monetary targeting is quite inefficient, yielding both higher inflation and output variability, even with a non-stochastic money demand formulation.

TL;DR: In this paper, the impact of competition on banks' risk-taking behavior under different assumptions about deposit insurance and the dissemination of information was studied, and it was shown that financial opening unambiguously improves welfare as the limiting cases.

TL;DR: In this article, the authors show that current concentration does not reduce speculative lending, and may in fact increase it, and that a temporary increase in market concentration after a bank failure, by promoting a takeover of failed banks by a solvent institution, is very effective.

TL;DR: This article developed a model to analyze the implications of firing costs on incentives for R&D and international specialization and found that countries with a rigid labor market will tend to produce relatively secure goods, at a late stage of their product life cycle.

TL;DR: In this article, the authors explain the coexistence of convergence across countries and the lack thereof at the regional level in the European Union and show that the intensification of international knowledge spillovers due to more cross-country interaction may exacerbate within-country regional disparities, if regions with different specialization do not benefit evenly from the exchange of knowledge.