Distinguishing pure supply effects from other determinants of price and quantity in the market for loans is a notoriously difficult problem. Using German data, we employ Bayesian vector autoregressive models with sign restrictions on the impulse response functions in order to enquire the role of loan supply and monetary policy shocks for the dynamics of loans to non-financial corporations. For ...

The intertemporal current account approach predicts that the current account of a small open economy is independent of global shocks, and that responses of the current account to countryspecific shocks depend on the persistence of the shocks. The author shows that these predictions impose cross-equation restrictions (CERS) on a structural vector autoregression (SVAR). To test the CERs, the auth...

The shocks in the solar corona and interplanetary (IP) space caused by fast Coronal Mass Ejections (CMEs) are simulated numerically and their structure and evolution is studied in the framework of magnetohydrodynamics (MHD). Due to the presence of three characteristic velocities and the anisotropy induced by the magnetic field, CME shocks generated in the lower corona can have a complex structu...

Article history: Received 17 September 2014 Received in revised form 23 March 2015 Accepted 24 March 2015 Available online 31 March 2015 This paper investigates the dynamic effects of common macroeconomic shocks in shaping business cycle fluctuations in a group of Euro-area countries. In particular, by using the structural (near) VAR methodology, we investigate the effect of area-wide shocks, w...

Using a gift exchange experiment, we show that the ability of reciprocity to overcome incentive problems inherent in principal-agent settings is greatly reduced when the agent’s effort is distorted by random shocks and transmitted imperfectly to the principal. Specifically, we find that gift exchange contracts without shocks encourage effort and wages well above standard predictions. However, t...

Using data we collected in rural Burkina Faso, we examine how children’s cognitive abilities influence households’ decisions to invest in their education. To address the endogeneity of child ability measures, we use rainfall shocks experienced in utero or early childhood to instrument for ability. Negative shocks in utero lead to 0.24 standard deviations lower ability z-scores, corresponding wi...

This paper analyses the implications of cost-push shocks for the optimal choice of monetary policy target in an two-country sticky-price model. In addition to cost-push shocks, each country is subject to labour-supply and money-demand shocks. It is shown that the fully optimal coordinated policy can be supported by independent national monetary authorities following a policy of flexible inflati...

study of price trend in iran, showed that general level of prices is rising continually during time. an inflation situation has effect on most economic variables. therefore investigation of effective factors and variables on inflation is important. exchange rate and gap in product are factors which affect inflation. in this paper the impact of exchange rate shocks and gap on inflation in iran’s...

We study products of precursors of spatially local operators, Wxn(tn) . . .Wx1(t1), where Wx(t) = e Wxe iHt. Using chaotic spin-chain numerics and gauge/gravity duality, we show that a single precursor fills a spatial region that grows linearly in t. In a lattice system, products of such operators can be represented using tensor networks. In gauge/gravity duality, they are related to Einstein-R...