Showing papers in "European Economic Review in 2008"

TL;DR: Abadie et al. as mentioned in this paper used a simple economic model to show that terrorism may have a large impact on the allocation of productive capital across countries, even if it represents a small fraction of the overall economic risk.

TL;DR: The authors proposed separate series for a common language depending upon whether ease of communication facilitates trade through translation or the ability to communicate directly, and examined the effect of two country-specific linguistic influences on trade: literacy and linguistic diversity at home.

TL;DR: In this paper, the authors re-examine the relationship between trade intensity and business cycle synchronization for 21 OECD countries in the period 1970-2003 and confirm that trade intensity affects synchronization, but the effect is much smaller than previously reported.

TL;DR: In this paper, the authors present empirical evidence on immigration flows into the OECD countries during the period 1990-2000 and find that network effects are strong, but vary between different groups of welfare states and between countries according to the type of immigration policy being applied.

TL;DR: The authors analyzes micro and macroeconomic factors that influence the price-setting behavior of banks and provides an alternative way of disentangling loan supply from loan demand shift in the "bank lending channel" literature.

TL;DR: In this paper, the authors used nearest neighbor matching to isolate the impact of participation in export markets and find evidence that spillovers associated with agglomeration can raise the probability of export market entry and once entry has occurred there may be additional productivity benefits.

TL;DR: In this paper, the speed of convergence for a sample of 163 regions of the European Union (EU) over the period 1981-1996 is estimated using a spatial econometric perspective.

TL;DR: In this article, the authors used data that track manufacturers' shipments within the US on an exceptionally fine grid, and found that the pattern of shipments is extremely localized, with shipments within 5-digit zip codes, which have a median radius of just 4 miles, are 3 times larger than shipments outside the zip code.

TL;DR: The authors developed a simple microstructural model of exchange rate movements, which they then estimate using daily data on the dollar-mark exchange rate and on Federal Reserve and Bundesbank intervention operations.

TL;DR: In this paper, the effects of monetary agreements on trade flows using a sample of 25 OECD countries over the period 1950-2004 were analyzed and it was shown that using the euro promoted both the Eurozone's exports and its imports to non-Eurozone markets.

TL;DR: In this article, the authors introduce the fairness approach to efficiency wages into a standard model of international fragmentation and give a theoretical framework in which wage inequality and unemployment rates are co-determined.

TL;DR: A review of the literature on de facto regimes can be found in this article, where the main methodologies that have been used to construct de facto codings, surveys the empirical literature generated by de facto regime codings and lays-out the problems inherent in constructing de facto classifications.

TL;DR: In this article, the role of preplanned exits (the investor's initial strategy to sell the investee firm via an acquisition or an initial public offering (IPO) at the time of initial contract with the entrepreneur), legal conditions and investor versus investee bargaining power in the allocation of cash flow and control rights in entrepreneurial finance was empirically considered.

TL;DR: In this paper, the role of trade costs in explaining the increase in the number of cross-border M&As was analyzed using industry data for 23 OECD countries for the period 1990-2001.

TL;DR: In this article, the authors investigate whether weak ties play an important role in explaining criminal activities and find that increasing the percentage of weak ties induces more transitions from non-crime to crime and thus the crime rate in the economy increases.

TL;DR: This paper examined global economic dynamics under learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound and recommended augmenting normal policies with aggressive monetary and fiscal policy that guarantee a lower bound on inflation.

TL;DR: In this paper, the authors endogenize the strength of the intellectual property rights and show how private incentives to protect these rights affect economic development and growth, and explain why the effect of a transfer of institutions from one country to another depends on the quality of the institutions that were imported.

TL;DR: In this article, the role of asset prices in comparison to other factors, in particular exchange rates, as a driver of the US trade balance was analyzed, using a Bayesian structural VAR model that requires imposing only a minimum of economically meaningful sign restrictions.

TL;DR: In this article, the authors test the hypothesis that centralization is less likely under referendum decision-making in the unique institutional setting of Switzerland, using a panel of Swiss cantons from 1980 to 1998, and find that referendums induce less centralization of fiscal activities.

TL;DR: In this article, the authors examine the determinants of the sequencing of privatization and obtain testable predictions about the factors that may affect sequencing, investigating the following competing government objectives: (i) Maximizing efficiency through resource allocation; (ii) maximizing public goodwill from the free transfers of shares to the public; (iii) minimizing political costs; (iv) maximizing efficiency through information gains; and (v) maximizing privatization revenues.

TL;DR: In this article, the authors incorporate a theory of unemployment into the new Keynesian theory of inflation and empirically test its implications for inflation dynamics, showing that the elasticity of inflation with respect to unemployment depends on structural characteristics of the labor market such as the matching technology that pairs vacancies with unemployed workers.

TL;DR: In this paper, the authors present further evidence on the behaviour of euro area inflation using band spectrum regressions, which allow for a natural definition of the short and long run in terms of specific frequency bands, and causality tests in the frequency domain.

TL;DR: Hong and Shum as mentioned in this paper proposed a new maximum likelihood method to estimate search costs in the case of oligopoly and applied their method to a data set of online prices for different computer memory chips.

TL;DR: In this article, the authors examine the impact of a policy change by the Oklahoma Department of Transportation that led to the release of the state's internal estimate of the costs to complete highway construction projects.

TL;DR: The authors show that the New Keynesian Phillips curve is shifted by immigration if natives' and immigrants' labor supply elasticities and bargaining power differ, and they argue that this stems from the immigration boom in Spain over this period.

TL;DR: In this article, the relationship between economic growth and inequality depends upon the levels of funding of two of the largest government programs, public education and social security, and it is shown that an increase in government spending on social security reduces income inequality and can have a non-monotonic effect on growth.

TL;DR: In this paper, the authors argue that poor results are to be expected when regression samples include countries that vary greatly in their ability to use schooling productively, and they use data on corruption, the black market premium on foreign exchange and the extent of the brain drain for developing countries as indicators of an economy's productive use of schooling.

TL;DR: In this article, the authors assess the empirical relevance for inflation dynamics of accounting for the presence of search frictions in the labor market and construct a synthetic measure of real marginal costs using newly available labor market data on worker finding and separation rates that reflect hiring and firing costs.

TL;DR: In this article, a symmetric two-country intra-industry trade model where firms are of two different marginal cost types and where fixed export costs are heterogeneous across firms is presented.

TL;DR: In this article, the management of highly persistent shocks to aid flows in the presence of currency substitution by the domestic private sector is studied, and it is shown that a managed float with little or no sterilization of increases in the monetary base supports the smooth absorption of the increased aid without incurring higher inflation, higher real interest rates or overshooting of the real exchange rate.