Showing papers in "European Economic Review in 2009"

TL;DR: In this paper, the impact of domestic and foreign R&D capital stocks on total factor productivity (TFP) was investigated and the authors found that institutional differences are important determinants of TFP and that they impact the degree of R&DI spillovers.

TL;DR: In this paper, the authors investigated the interplay between social capital, innovation and economic growth in the European Union and found that higher innovation performance is conducive to economic growth and that social capital affects growth indirectly by fostering innovation.

TL;DR: This article presented an overview of modern field experiments and their usage in economics, focusing on three distinct periods of field experimentation that have influenced the economics literature: the work of Neyman and Fisher, who laid the experimental foundation in the 1920s and 1930s by conceptualizing randomization as an instrument to achieve identification via experimentation with agricultural plots, the large-scale social experiments conducted by government agencies in the mid-twentieth century, moved the exploration from plots of land to groups of individuals.

TL;DR: The authors investigated whether temporary members of the United Nations Security Council receive favorable treatment from the International Monetary Fund (IMF) using panel data for 197 countries over the period from 1951 to 2004.

TL;DR: In this article, the authors use a database of securitisation activity and a large sample of European banks and find that the use of Securitization shelters banks' loan supply from the effects of monetary policy.

TL;DR: In this article, the authors examine the effect of democracy on economic performance in resource-rich societies. But they show that a priori the sign of the effect is ambiguous: resource rents could either enhance or undermine the economic consequences of democracy.

TL;DR: This article study a voluntary contributions mechanism in which punishment may be allowed, depending on subjects’ voted rules and find that groups allowing punishment of only low contributors achieved levels of cooperation and efficiency that are among the highest in the literature on social dilemmas.

TL;DR: In this article, the effect of legal reforms leading to "easier divorce" in Europe during the last four decades was analyzed. And they found that no-fault, unilateral divorce increased the divorce rate by about 0.6, a sizeable effect given the average rate of 2 divorces per 1000 people.

TL;DR: In this article, a dynamic utility maximization model of female labor force participation and fertility choices is proposed to estimate approximate decision rules using data on married women in Italy, Spain and France.

TL;DR: In this article, a gravity-like equation for service trade was derived for a large sample of countries and different categories of service trade and it was shown that delivery costs create a significant advantage for local workers relative to competing workers in distant countries.

TL;DR: In this article, the determinants of the developing countries' production frontier and these countries' efficiency in using the available resources and technology are simultaneously explored, which allows for the transfer of (industrial country) technology in determining the frontier and for international trade's influence on absorptive capacity and national efficiency levels.

TL;DR: Using a panel of OECD countries from 1960 to 2002, the authors showed that interest rates, particularly those of long-term government bonds, decrease when countries' fiscal position improves and increase around periods of budget deteriorations.

TL;DR: In this paper, the authors studied the relationship between regulatory regimes and pharmaceutical firms' pricing strategies using a unique policy experiment from Norway, which in 2003 introduced a reference price (RP) system called "index pricing" for a sub-sample of off-patent pharmaceuticals, replacing the existing price cap (PC) regulation.

TL;DR: In this paper, the authors explore a formal model inspired by the experience of participatory budgeting implemented in the Brazilian city of Porto Alegre, that builds on the model of meetings with costly participation by Osborne et al.

TL;DR: In this article, a voluntary contribution experiment was conducted where participants were asked to make non-binding numerical announcements about their "possible" contributions and send written promises to contribute specific amounts.

TL;DR: This article investigated the determinants of bilateral international equity and bond portfolio reallocation across a large cross-section of countries spanning over two sample periods: 1997-2001 and 1997-2005, and found that the strongest drivers are the marginal diversification benefits arising from the pure asset component and the initial degree of underweight.

TL;DR: In this paper, the authors argue that the prevalence of soft budget constraints can be best explained by the political desirability of softness, and they develop an infinite horizon political economy model where neither democratic nor autocratic politicians can commit to policies that are not ex post optimal.

TL;DR: In this paper, the authors extend the standard labor market search problem to allow for a third state, non-participation, and assume that stochastic participation costs precipitate flows into and out of nonparticipation.

TL;DR: In this paper, the authors used a database of surveys of professional ECB policy forecasters in 24 countries, and found remarkable differences in forecast accuracy, and showed that these have important repercussions on market behavior.

TL;DR: The authors provided evidence on the relation between inflation and globalization, defined here as trade and financial openness, using a large cross-section of 91 countries over the period 1985-2004, and established two main empirical regularities: both higher trade and monetary openness reduce central banks' inflation bias, yielding lower average inflation and are associated with a larger output-inflation tradeoff.

TL;DR: In this article, the authors show that there is a two-way causality between privatization and greenfield FDI, and that the optimal degree of privatization depends on the cost difference of the firms, and on the foreign firm's mode of entry.

TL;DR: This article developed an equilibrium model to analyze the role of the media in electoral competition and found that when policy payoffs are state-dependent, party policies do not converge to the median voter's ideal policy if the media report only party policies.

TL;DR: In this article, a number of theoretical studies have predicted that preferential trade agreements (PTAs) raise outside multinationals' incentive to invest in the participating countries, especially in those that are integrated with larger markets and have lower production costs.

TL;DR: In this article, the authors show that the welfare losses from a concealment-detection contest depend positively on the prevailing tax rate, but not on the penalty which is imposed in case of detected tax evasion.

TL;DR: In this paper, the consequences of corruption on efficiency, bidders' welfare and expected revenue were analyzed in a first-price auction, where one bidder is granted a right of first refusal.

TL;DR: The authors study subjects' compliance with dominance relationships of income distributions in a ranking task and find that people's risk attitudes do not adequately reflect their inequality attitudes, while self-interested social planners are generally more inequality averse and try to avoid extreme outcomes.

TL;DR: The authors explored the ways in which information about other individual's action affects one's own behavior in a dictator game and found that reputation effects have a stronger impact on dictators' actions than social influence and identification.

TL;DR: This paper developed a criterion to distinguish two dominant paradigms of international trade theory: constant-returns perfectly competitive models and increasing returns monopolistically competitive models, making use of the pervasive presence of home-biased expenditure.

TL;DR: In this article, the authors analyzed the impact of vertical integration on upstream collusion when the price of the input is linear and derived the collusive equilibrium that requires the lowest discount factor in the infinitely repeated game when one firm is vertically integrated.

TL;DR: In this article, the authors study a two-sided market where a platform attracts firms selling differentiated products and buyers interested in those products, and show that the market allocation is constraint-efficient in the sense that the monopoly platform does not introduce distortions over and above those arising from the market power of the differentiated product sellers.