We revisit a framework of con‡ict in a canonic open economy model to examine appropriate policy responses. We derive further implications of the framework, we link them to other results in the literature, and we explore the scope and limits of the analogy between policy analysis in a con‡ict economy and the policy analysis under distortions o¤ered by the traditional trade literature. We rank al...

JEL Classification Code(s): J 31, J 71) "Perceptions of Discrimination, Effort to Obtain Psychological Balance, and Relative Wages: Can We Infer a Happiness Gradient?" There is a substantial literature that finds a linkage between happiness and relative economic well being as measured by earnings or wages. There is also a well documented racial gap in wages. One explanation for this is disparat...

abstract the aim of this study is of the effect of structural changes in higher education on changes of output in sistan and baluchestan province using structural decomposition analysis (sda). the input-output tables of this region for the period 2006-2011 have been employed as the database of the model. the structural changes were decomposed into two factors: changes in share of specific secto...

This paper investigates the effects of fiscal policy on the trade balance using a structural factor model. A fiscal policy shock worsens the trade balance and produces an appreciation of the domestic currency but the effects are quantitatively small. The findings match the theoretical predictions of the standard Mundell-Fleming model, although fiscal policy should not be considered one of the m...

This paper estimates a 7 variable TVP-VAR on US data using kernel methods. We identify monetary policy shocks using sign restrictions for each period in our sample. We then fit the SmetsWouters (2007) model to these impulse responses, tracing out evolutions in the structural DSGE parameters over time. Parameters defining nominal rigidities move a lot. Some real side ones move a lot (investment ...

Legal simplification may improve the quality of institutions in industrialised countries that developed over-complex legal systems. In theory, this type of regulatory reform promotes economic efficiency, leading to higher levels of productivity and output. In this paper we use a Panel Factor-Augmented VAR approach to measure the long-run impact of legal-simplification programmes in total factor...

In this paper we test for the inclusion of the bid-ask spread in the consumption CAPM, in the UK stock market over the time period of 1980-2000. Two econometric models are used; first, Fisher’s (1994) asset pricing model is estimated by GMM, and secondly, the VAR approach proposed by Campbell and Shiller is extended to include the bid-ask spread. Overall the statistical tests are unable to reje...

-Texture classification is a major issue in image analysis and pattern recognition. A number of methods are proposed in the literature including Local Binary Pattern (LBP). The LBP variant (s) plays an active role to extract texture features for texture classification. These are rotation invariant, noise sensitive or noise insensitive mehods. Each method has its own advantages and disadvantages...

We examine the impact of adding a value-at-risk (VaR) constraint to the problem of an active manager who seeks to outperform a benchmark while minimizing tracking error variance (TEV) by using the model of Roll [1992. A mean/variance analysis of tracking error. Journal of Portfolio Management 18, 13–22]. We obtain three main results. First, portfolios on the constrained mean-TEV boundary still ...

This paper presents empirical evidence on the behaviour of interbank lending in Germany after a monetary policy impulse. Our VAR analysis shows that following a monetary contraction, the banking system as a whole attracts additional funds from foreign banks. Whereas small cooperative and savings banks do not seem to directly access the interbank market themselves, they do so indirectly through ...