This paper investigates empirically the interrelationships between the daily stock market returns of the Nikkei 225, DAX and Dow Jones Industrial index. Contrary to former work this paper uses the succession of the markets in time to form different econometric models. In this way it is possible to detect causality not only from the US to foreign countries but in some cases vice versa. The obser...

This paper uses a multicountry econometric model to examine Asia-type crises. Experiments are run for Thailand, Malaysia, the Philippines, and Korea, each corresponding to a depreciation of the country’s currency. The results suggest that both the expansionary and inflationary effects of a depreciation are in general fairly large.

This paper provides first micro-level evidence of the global university production frontier, allowing to estimate technical efficiencies of 273 top research universities across 29 countries between 2007 and 2009. Exploiting comparable international data improves the estimation of the production technology, allows to assess the distance of individual countries to the global frontier and enables ...

In a recent paper, Newell and Pizer (2003) (N&P) build upon Weitzman (1998, 2001) and show how uncertainty about future interest rates leads to ‘certainty equivalent’ forward rates (CER) that decline with the time horizon. Such Declining Discount Rates (DDR’s) have important implications for the economic appraisal of the long-term policy arena (e.g. climate change) and inter-generational equity...

This paper reconsiders the conventional use of econometric models, especially identified vector autoregressive models, in guiding monetary policy. The main question I explore is whether these models are seriously flawed because they ignore asymmetries in the business cycles. Toward that end, models that allow for asymmetric business cycles—defined by the case where recessions and expansions are...

This contribution starts from today’s definitions of innovation indicators and completes these 150 years backwards. It is divided into a descriptive and an econometric part. The German innovation system was very stable although it witnessed several political system changes in the past century. This allows for a comparison of 1850 – 1913 with 1951 – 1999. In the first period the overall empirica...

This paper studies the evolution of life satisfaction over the life course in Germany. It clarifies the causal interpretation of the econometric model by discussing the choice of control variables and the underidentification between age, cohort and time effects. The empirical part analyzes the distribution of life satisfaction over the life course at the aggregated, subgroup and individual leve...

In October 2008, the Department of Justice approved the Delta/Northwest merger, claiming the potential for substantial cost efficiencies with little or no harmful effects on competition. What makes this merger particularly interesting is that Delta and Northwest are codeshare partners. As such, the merger could have varying effects across different product types (pure online versus codeshare). ...

We estimate an econometric model of coca production in Colombia. Our results indicate that coca eradication is an ineffective means of supply control as farmers compensate by cultivating the crop more extensively. The evidence further suggests that incentives to produce legal substitute crops may have greater supplyreducing potential than eradication.

In this paper, the author analyzes the gap in knowledge-based economy development between China and the United States, explores its cause, and gives some constructive suggestions to promote Chinese knowledge-based economy development. The paper has three parts. The first is a brief literature review. The author concludes that at present the indicator model is more proper than the econometric mo...