1,721,123 research outputs found
Using Stationarity Tests in Antitrust Market Definition
No full textIn this paper it is argued that, if two products or geographic areas belong in the same market, their relative price must be stationary. Hence stationarity tests like the ADF and the KPSS can be helpful in delineating the relevant market for Antitrust purposes, particularly for abuses of dominant positions and agreements between competitors. The proposed procedure is strictly relatedwith cointegration analysis but is simpler and has more general validity. An application to the Italian milk market illustrates the technique
Consumption Volatility and Income Persistence in the Permanent Income Model
No full textDeaton's (1987) "excess smoothness" question can be reformulated by focusing attention on total income rather than labor income: the permanent income theory predicts that the relative volatility of consumption is equal to total income persistence, a fact that is contradicted by empirical evidence. This formulation is more general than the original one in that it is independent of the value of the interest rate, the univariate dynamics of labor income and the information set of the representative consumer. When properly formulated, the excess smoothness problem cannot be solved within Quah's (1990) superior information model; as a consequence, the interest of alternative solutions such as aggregation models is increased
L'aggregazione nei modelli dinamici
No full textIl libro discute la relazione tra le reazioni microeconomiche e le relazioni macroeconomiche. Le condizioni di aggregazione perfetta sono estremamente restrittive. In generale, le relazioni macroeconomiche sono mal specificate e l'agente rappresentativo invocato da gran parte della macroeconomia moderna non esiste
Storie familiari e storie di proprieta': la scomparsa della mezzadria in Italia
No full textIl libro descrive i processi che hanno generato la scomparsa della mezzadria in Italia attraverso l'analisi di storie familiari e storie di proprieta' raccolte attraverso interviste dirette a Modena e nei comuni limitrofi
Government spending shocks in open economy VARs
Full text linkBy using the Survey of Professional Forecasters, we provide new evidence on the open economy effects of government spending, focusing on a key puzzle in the literature, that the real exchange rate depreciates in response to a scal expansion. Much of government spending is well anticipated over a one year horizon. Once news and surprise shocks are treated as ddifferent shocks, there is no depreciation puzzle for news shocks while it is still there with surprise shocks. Fiscal foresight seems to lie at the heart of the different exchange rate responses to news and surprise shocks, depending on the timing of the anticipated budget adjustment following the shock. Indeed, the results are broadly consistent with the prediction of a DSGE model with spending reversals
Aggregation Across Agents in Demand Ssystems
No full textIn this survey we present the main results on the problem of aggregation across agents in demand systems, when no restrictions are placed on income distribution. The focus is on the theoretical aspects of the results. The implications for empirical work are made explicit, but not dealt with in detail
The sources of local growth: evidence from Italy
No full textThe aim of this paper it to identify the main determinants of growth for local areas belonging to the same country. We examine the impact of a number of social, structural, and political variables on the economic performance of the Italian provinces during the period 1971-1991. Many of these variables appear for the first time in the Barro-regression literature. We analyze growth not only in terms of income, but also in terms of employment and population. First, we find that local growth is strongly affected by the diffusion of specialized industrial districts made up of small and medium-sized firms. Second, we find weak evidence of the importance of social capital for growth, whereas variables indicating political sub-cultures and social cohesion are strongly related with economic performance. Lastly, we show that crime and labor conflicts have a clear negative impact on employment
Sufficient information in structural VARs
No full textNecessary and sufficient conditions under which a VAR contains sufficient information to estimate the structural shocks are derived. On the basis of this theoretical result we propose two simple tests to detect informational deficiency and a procedure to amend a deficient VAR. A simulation based on a DSGE model with fiscal foresight suggests that our method correctly identifies and fixes the informational problem. In an empirical application, we show that a bivariate VAR including unemployment and labor productivity is informationally deficient. Once the relevant information is included into the model, technology shocks appear to be contractionary
Aggregation and the Microfoundations of Dynamic Macroeconomics
No full textThis book argues that modern macroeconomics has completely overlooked the aggregate nature of the data. Standard models start with intertemporally maximizing agents and obtain dynamic equations linking economic variables like consumption, income, investment, interest rates and employment. Such equations exhibit testable properties like cointegration, definite patterns of Granger causality, and restrictions on the parameters. The usual simplification that agents are identical leads to testing these properties directly on aggregate data. Here this simplification is systematically questioned. In Part I the homogeneity assumption is tested using disaggregate data and strongly rejected. As shown in Part II, the consequence of introducing heterogeneity is that, apart from flukes, cointegration, unidirectional Granger causality and restrictions on the parameters do not survive aggregation: thus the claim that modern macroeconomics has solid microfoundations is unwarranted. However, it is argued in Part III that aggregation is not necessarily bad. Some important theory-based models that do not fit aggregate data well in their representative-agent version can be reconciled with aggregate data by introducing heterogeneity
Federal policies and local economies: Europe and the U.S.
No full textinfo:eu-repo/semantics/publishe
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