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Robust portfolio selection with smart return prediction Econ. Model. (IF 3.875) Pub Date : 2024-03-11 Xueyong Tu, Bin Li
Return prediction and portfolio decision are closely connected steps in forming optimal portfolios. However, existing studies often separate return prediction from portfolio decisions or overlook the high sensitivity of optimal portfolios to estimated returns, leading to poor out-of-sample performance. To address these two issues simultaneously, this paper proposes a robust portfolio framework that
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A micro-macro approach for the evaluation of fiscal policies: The case of the Italian tax-benefit reform Econ. Model. (IF 3.875) Pub Date : 2024-03-06 Eva Alexandri, Francesco Figari, Enrico Longo, Cornelia-Madalina Suta
A comprehensive evaluation of fiscal policy reforms requires a methodology that simultaneously considers their aggregate impact on the economy as a whole as well as their distributional implications at the individual or household level.
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Estimating the output gap after COVID: How to address unprecedented macroeconomic variations Econ. Model. (IF 3.875) Pub Date : 2024-03-06 Camilo Granados, Daniel Parra-Amado
We examine the importance of adjusting output gap frameworks during large-scale disruptions, with a focus on the COVID-19 pandemic. Such adaptation can be crucial given the impact of such episodes on the reliability of time-series models and the inherent need for stability in output gap methods. We employ a Bayesian Structural Vector Autoregression model, identified through a permanent-transitory decomposition
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How does corporate altruism affect oligopolistic competition? Econ. Model. (IF 3.875) Pub Date : 2024-03-03 Francisco Candel-Sánchez, Juan Perote-Peña
This paper examines firms' corporate social responsibility (CSR) competition in a duopoly model with product differentiation. Firms exhibit different degrees of altruism, which is a characteristic positively valued by consumers; however, as each firm's degree of altruism (type) is private information, using CSR activities to signal the types becomes an additional tool for competition. We analyze a
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Efficiency–equity trade-off in the Irish carbon tax: A CGE investigation of mixed revenue recycling schemes Econ. Model. (IF 3.875) Pub Date : 2024-03-01 Kelly de Bruin, Aykut Mert Yakut
The literature shows that earmarking carbon tax revenues to reduce other distortionary taxes can mitigate the tax’s adverse economic implications, whereas transferring revenues directly to households can reduce the tax’s negative equity implications. This paper employs a dynamic applied general equilibrium model to examine the inherent efficiency–equity trade-off in Irish carbon tax revenue recycling
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The economic impact of general vs. targeted lockdowns: New insights from Italian municipalities Econ. Model. (IF 3.875) Pub Date : 2024-02-27 Zsombor Cseres-Gergely, Valentin Kecht, Julia Le Blanc, Luca Onorante
In response to COVID-19, most governments implemented either general or geographically targeted lockdowns. While the contractionary effects of general lockdowns have been well-documented, this paper is the first to contrast the economic impacts of the two approaches in a quasi-experimental setting. To this aim, we construct a high-frequency database combining unique information from mobile devices
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The aggregate and distributional effects of fiscal stimuli Econ. Model. (IF 3.875) Pub Date : 2024-02-22 P, a, w, e, ł, , K, o, p, i, e, c
This paper compares the aggregate and distributional effects of three fiscal policy instruments: government expenditures, unemployment benefits, and transfers. To this end, the canonical model of frictional labor market is embedded into an otherwise standard incomplete markets framework where firms face price-adjustment costs. The model calibrated to match the moments characterizing the US economy
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A game-theoretic analysis of international tax compliance Econ. Model. (IF 3.875) Pub Date : 2024-02-19 Patrice Pieretti, Giuseppe Pulina
This paper analyzes the response of low-tax jurisdictions to growing political pressure to comply with international tax avoidance regulations. We develop a game-theoretic model in which a low-tax country attempts to attract multinational companies by offering tax planning and/or an environment conducive to real economic activities. Our analysis reveals that while it is optimal to stigmatize non-compliant
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Global and local technical changes: A new decomposition of the Malmquist productivity index using virtual units Econ. Model. (IF 3.875) Pub Date : 2024-02-16 Juan Aparicio, Daniel Santín
In estimating productivity change over time, technical change is frequently miscalculated as the geometric average of technological changes between two periods based on firm-specific information in the dataset. However, the frontier shift over time is a global phenomenon linked to relative technological progress or regress across the entire frontiers. In this paper, we fill this gap by determining
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Explaining long-term bond yields synchronization dynamics in Europe Econ. Model. (IF 3.875) Pub Date : 2024-02-14 Jesús Crespo Cuaresma, Oscar Fernández
We present a novel empirical assessment of the determinants of sovereign yield synchronization dynamics in the European Monetary Union. This topic has been seldom addressed in the existing macroeconometric literature. We use a time-varying measure of government bond yields synchronization and Bayesian Model Averaging methods to show that the persistence of synchronization measures differs significantly
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Financial openness, capital accumulation, and productivity in emerging and developing economies Econ. Model. (IF 3.875) Pub Date : 2024-02-09 Aderbal Oliveira Damasceno, Dyeggo Rocha Guedes
This paper investigates whether financial openness stimulates capital accumulation and productivity growth in emerging and developing economies. The empirical literature, although relatively scarce, suggests a positive effect of financial openness on capital accumulation and productivity growth. We estimate growth equations for capital stock and productivity using data for 104 emerging and developing
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Rethinking the role of government in education: Private education tuition waivers and public education Econ. Model. (IF 3.875) Pub Date : 2024-02-06 RuoPeng Wang, Shin Kimura
This study evaluates the different impacts of public education and private education tuition waivers on human capital growth, fertility rates, and income inequality using an overlapping generations model with a child quality–quantity tradeoff. Numerous studies have confirmed that private (public) education facilitates higher (lower) human capital growth and lower (higher) fertility rates but widens
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The effects of pandemics on income inequality: Visualizing a theoretical analysis Econ. Model. (IF 3.875) Pub Date : 2024-02-05 Inyong Shin
This paper provides theoretical insights into the effect of the pandemic on income inequality, employing simple optimization and epidemic models. The effects of the pandemic are elucidated through visual aids such as figures and animations. The findings suggest that shifts in labor opportunities, which affected wage income, have worsened income inequality. The pandemic led to an enormous decrease in
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On the macroeconomic impact of NGEU funds and its propagation through the production network Econ. Model. (IF 3.875) Pub Date : 2024-02-03 Alejandro Fernández-Cerezo, Enrique Moral-Benito, Javier Quintana
We quantify the sectoral and aggregate effects of the Next Generation European Union program in the Spanish economy. We outline a dynamic model with production and investment networks that allows for different linkages among sectors and countries. Our model can accommodate different stimulus packages, such as public infrastructure investment, current public expenditure, or capital transfers to firms
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Robust portfolio selection with subjective risk aversion under dependence uncertainty Econ. Model. (IF 3.875) Pub Date : 2024-01-29 Xiaoshan Su, Yuhan Li
This paper solves the robust portfolio decision problem with subjective risk aversion under dependence uncertainty. We use spectral risk measures to capture investors’ subjective risk aversion while constructing mixture R-vine copula uncertainty with R-vine copula change-point detection to characterize dependence uncertainty. We introduce worst-case spectral risk measures (WSRM) and formulate portfolio
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Solving linear DSGE models with Newton methods Econ. Model. (IF 3.875) Pub Date : 2024-02-02 Alexander Meyer-Gohde, Johanna Saecker
This paper presents and compares Newton-based methods from the applied mathematics literature for solving the matrix quadratic that underlies the recursive solution of linear DSGE models. The methods are compared using nearly 100 different models from the Macroeconomic Model Data Base (MMB) and different parameterizations of the monetary policy rule in the medium-scale New Keynesian model of Smets
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Does macroprudential policy leak? Evidence from shadow bank lending in EU countries Econ. Model. (IF 3.875) Pub Date : 2024-02-02 Martin Hodula, Ngoc Anh Ngo
Post the Global Financial Crisis, there has been a surge in the global use of macroprudential policy tools. Concerns have arisen due to the predominant targeting of traditional banks, potentially prompting activity reallocation towards shadow banking. This study scrutinizes the impact of macroprudential policy on shadow bank lending, using quarterly data from 23 European Union countries spanning 1999–2019
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Oil price fluctuations and their impact on oil-exporting emerging economies Econ. Model. (IF 3.875) Pub Date : 2024-01-29 Emmanuel Agboola, Rosen Chowdhury, Bo Yang
How do oil price fluctuations affect economic activity and policy in the context of oil-exporting emerging economies? Past research suggests that the output responses to oil price innovations are asymmetric in nature but does not directly test the asymmetry in the government expenditure adjustments triggered by the shock. Moreover, many studies quantifying these asymmetric responses are fraught with
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Semiparametric least squares estimation of binary choice panel data models with endogeneity Econ. Model. (IF 3.875) Pub Date : 2024-01-25 Anastasia Semykina, Yimeng Xie, Cynthia Fan Yang, Qiankun Zhou
This paper investigates the estimation of binary response panel data models with endogenous regressors using semiparametric least squares. The endogeneity arises from an unobserved time-invariant effect and a nonzero correlation between the idiosyncratic error and one or more explanatory variables. Our proposed estimator addresses endogeneity by the correlated random effects and control function approaches
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Measuring health care access and its inequality: A decomposition approach Econ. Model. (IF 3.875) Pub Date : 2024-01-30 Antonio Abatemarco, Massimo Aria, Sergio Beraldo, Michela Collaro
We introduce a new method for assessing health care access disparities, focusing on the ‘Access Gap’. This gap represents the difference between the (out-of-pocket) cost of access to adequate health care and available financial resources. Our method quantifies this gap for groups with similar characteristics, using indicators like the Gini coefficient and Entropy for overall inequality analysis. Applied
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Free trade agreements and domestic value added in exports: An analysis from the network perspective Econ. Model. (IF 3.875) Pub Date : 2024-01-28 Yichen Yang, Wen Liu
The free trade agreement (FTA) has become a significant manifestation of economic globalization. While previous studies have examined the trade and welfare effects of FTAs, there has been limited literature focusing on assessing the economic impact of the FTA network. Using a sample of 60 countries from 2007 to 2017, we estimate the causal effects of the FTA network weighted by bilateral FTA depth
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Markov equilibrium of social security: An analytic solution under CRRA utility and the future of social security Econ. Model. (IF 3.875) Pub Date : 2024-01-22 Armando R. Lopez-Velasco
The politico-economic sustainability of pay-as-you-go social security has been studied with the help of two-period overlapping generation models under Markovian equilibrium concepts. The literature has mostly used logarithmic utility for tractability, whereas versions under the more general isoelastic CRRA utility have only been analyzed computationally. This paper demonstrates that a prototypical
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Habit formation and the government spending multiplier Econ. Model. (IF 3.875) Pub Date : 2024-01-22 Rym Aloui
This paper explores the impact of habit formation on government spending multipliers (GSMs) within a New Keynesian framework, challenging the widely held belief that GSMs are significantly larger when nominal interest rates are low. We present a novel channel that affects the size of GSM by introducing deep habit preferences, which include consumption habits at the variety level. During periods of
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Characterizing the schooling cycle Econ. Model. (IF 3.875) Pub Date : 2024-01-18 Barbara Sadaba, Sunčica Vujić, Sofia Maier
This paper examines the cyclical dynamics of school participation decision, using data for 16-24-year-olds attending full-time post-compulsory education in the UK in the period from 1995Q1 to 2019Q4. We find evidence of a highly persistent education cycle, largely explained by the business cycle. Importantly, the response of school participation to the business cycle is time-dependent – counter-cyclical
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Dimensional traps in evasion models and their effects on industrial structure Econ. Model. (IF 3.875) Pub Date : 2024-01-16 Raffaella Coppier, Elisabetta Michetti, Luisa Scaccia
Size-dependent firms’ monitoring by the state leads to sub-optimal results in terms of combating evasion and efficient allocation of investment by firms. While Coppier, Michetti and Scaccia (2022) describe how such a policy can be a source of dimensional trap in a single-firm evasion model, the present paper moves to a heterogeneous context, considering industrial structures composed of many firms
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Money laundering governance and income shifting: Evidence from Australian financial institutions Econ. Model. (IF 3.875) Pub Date : 2024-01-16 Baban Eulaiwi, Nihad Shareef Khalaf, Ahmed Al-Hadi, Lien Duong, Grantley Taylor
This study investigates the relationship between strength in money laundering governance (MLG) and income shifting incentives using a sample of Australian multinational financial institutions. Firms exhibiting strength in MLG are less likely to engage in income shifting arrangements given that strength in MLG can enhance financial transparency around funding sources, transfers and use. Further, we
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Commitment vs. noncommitment behaviors in natural resource conflicts: A case study of groundwater resources Econ. Model. (IF 3.875) Pub Date : 2024-01-16 Julia de Frutos Cachorro, Guiomar Martín-Herrán, Mabel Tidball
We examine the problem of natural resource exploitation when an exceptional extraction of a resource (groundwater) is needed and devoted to a different use than its regular use. The study applies a two-stage Stackelberg game to examine the strategic behavior of players who compete for water. The leader, with varying weights assigned to the different uses and environmental concern, is the manager of
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Ambiguity and risk in the oil market Econ. Model. (IF 3.875) Pub Date : 2024-01-13 Mahmoud Ayoub, Mahmoud Qadan
The empirical evidence about the risk-return relationship in the oil market is mixed and puzzling. Studies in this domain often treat risk and ambiguity (i.e., uncertainty) as interchangeable concepts without making any clear distinction. Motivated by these discrepancies and the limited knowledge about ambiguity in the oil market, we establish a clear difference between risk and ambiguity to explain
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The effect of South African wine certifications on price premiums and marginal costs: A two-stage hedonic approach Econ. Model. (IF 3.875) Pub Date : 2024-01-12 Britta Niklas
This paper analyses whether there are price premiums for certified and black economic empowerment (BEE) South African wines in the domestic market and the major export markets (Germany, United Kingdom, the Netherlands, and Belgium) and estimates what (marginal) costs are related to supplying these certifications. The results suggest price premiums for BEE wines, while for certified wines price premiums
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Econometric issues in the estimation of the natural rate of interest Econ. Model. (IF 3.875) Pub Date : 2024-01-05 Daniel Buncic
The natural rate of interest is a key benchmark steady-state rate of return that is used by central banks to measure the stance of monetary policy. Asset managers rely on estimates of the natural rate to make long-term investment decisions for their clients. This paper outlines a number of important econometric issues in the estimation of the natural rate of interest from a widely used structural model
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Hedge fund fee structure and risk exposure Econ. Model. (IF 3.875) Pub Date : 2024-01-09 Matias Braun, Julio Riutort, Hervé Roche
We provide a closed-form solution for the optimal investment strategy of a hedge fund manager compensated by a management fee and a high-water mark (HWM) contract. The fraction of the assets under management (AUM) allocated to equity is an increasing and convex function of distance to the HWM, with the size of the incentive fee rate enhancing the convexity effect. Importantly, the management fee induces
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Belief-dependent pricing decisions Econ. Model. (IF 3.875) Pub Date : 2024-01-06 Serafin Frache, Rodrigo Lluberas, Javier Turen
How do inflation and idiosyncratic cost expectations affect firms’ price-adjusting decisions? Evidence on micro price adjustment has emphasized that price changes follow a fixed adjustment schedule, i.e., time-dependent pricing, or that they respond to the state of the economy, i.e., state-dependent pricing. We use firm expectation survey data to argue that price-adjustment decisions are also belief-dependent
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The impact of organizational-level political connection on environmental strategy in private firms Econ. Model. (IF 3.875) Pub Date : 2024-01-01 Zhineng Long, Yulan Duan, Heng Zhan
Encouraging private firms in emerging economies to adopt environmental strategies presents a significant challenge. Previous literature has extensively explored environmental strategies but has not sufficiently delved into the influence of organizational-level political connections. Using a national sample survey of Chinese private firms in 2016, this study investigates the impact of Party branch on
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Debt and financial fragility: Italian non-financial companies after the pandemic Econ. Model. (IF 3.875) Pub Date : 2023-12-21 Bassam Fattouh, Beniamino Pisicoli, Pasquale Scaramozzino
This paper analyses the evolution of debt of Italian firms from 2010 to 2020 with special focus on the first year of the Covid-19 pandemic. We use quantile regressions to assess the vulnerabilities of the most indebted firms. On average Italian non-financial companies (NFCs) reduced their indebtedness over the sample period, a trend which continued during the first year of the pandemic. By exploiting
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A behavioral hybrid New Keynesian model: Quantifying the importance of belief formation frictions Econ. Model. (IF 3.875) Pub Date : 2023-12-26 Atahan Afsar, José-Elías Gallegos, Richard Jaimes, Edgar Silgado-Gómez
Recent evidence points towards significant belief formation frictions and forecast sluggishness. In this paper, we build a bounded rationality New Keynesian model, estimated to match the degree of forecast sluggishness present in the data. We find that bounded rationality induces enough myopia and intrinsic persistence, diminishing the influence of consumption habits and price indexation. Additionally
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Immigration and health outcomes: A study on native health perception and limitations in Europe Econ. Model. (IF 3.875) Pub Date : 2023-12-18 Martina Bazzoli, Joan E. Madia, Catia Nicodemo, Federico Podestà
This study examines the impact of immigration on the self-perceived health of natives in 16 European countries from 2006 to 2018. Utilizing data from the European Union Statistics on Income and Living Conditions (EU-SILC) and the European Union Labor Force Survey (EU-LFS), we focus on two health outcomes: natives’ self-perceived health and health-related limitations in daily activities. Contrary to
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Intensity of labor shocks behind the changes in Brazilian hours worked during the pandemic Econ. Model. (IF 3.875) Pub Date : 2023-12-18 Nelson da Silva, Sidney Caetano
COVID-19 has impacted the labor market in multiple ways, including by reducing the number of hours effectively worked. A study on the US economy found that two-thirds of the drop in the aggregate growth rate of hours worked was due to a labor supply shock. This paper quantifies the role of labor supply and labor demand shocks in Brazil’s labor market behavior during the COVID-19 period by estimating
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The effects of the EBA's stress testing framework on banks' lending Econ. Model. (IF 3.875) Pub Date : 2023-12-20 Kasim Ahmed, Giovanni Calice
This paper investigates the impact of the European Banking Authority (EBA)'s supervisory stress tests on bank lending. Using a sample of 282 European banks over the period 2006–2018, we find that stress-tested banks experience higher credit risk and reduce lending for specific loan types. In particular, due to country heterogeneities, we find that the contraction in lending is more pronounced for stress-tested
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Dynamic effects of tourism shocks on innovation in an open-economy Schumpeterian growth model Econ. Model. (IF 3.875) Pub Date : 2023-12-12 Angus C. Chu, Chih-Hsing Liao, Rongxin Xu, Ping-Ho Chen
International travel restrictions during the COVID-19 pandemic drastically reduced the number of tourists. This study explores the dynamic effects of tourism shocks in an open-economy Schumpeterian model with endogenous market structure. A tourism shock affects the economy via a reallocation effect and an employment effect. A positive tourism shock increases employment, which raises production and
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On the positive relation between the wage share and labor productivity growth with endogenous size and direction of technical change Econ. Model. (IF 3.875) Pub Date : 2023-12-09 Luca Zamparelli
This paper combines induced innovation and endogenous growth to investigate two issues: the relation between the wage share and labor productivity growth and the potential influence of the saving rate on the steady state wage share. We assume that myopic competitive firms choose the size and direction of technical change to maximize the growth rate of profits. First, we find technological conditions
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Pushing and pulling on a string? Inflationary effects of expansionary and contractionary monetary policies when rates are negative Econ. Model. (IF 3.875) Pub Date : 2023-12-09 Olli-Matti Laine, Matias Pihlajamaa
Theoretically, the effect of conventional monetary policy may reverse when policy rates are cut into negative territory. Empirical literature provides evidence that cutting policy rates extremely low can be harmful for bank lending. Using euro area data from the period 2014–2022, we study whether this has implications for the transmission of monetary policy to inflation – the key variable for many
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School productive performance and technology gaps: New evidence from PISA 2018 Econ. Model. (IF 3.875) Pub Date : 2023-12-07 Salvatore Capasso, Maria Kaisari, Konstantinos Kounetas, Elias Lainas
Improving educational outcomes is a global political imperative due to its favourable influence on a country's economic prosperity. Although researchers have endeavoured to gauge school performance through diverse data resources and techniques, there remains a lack of clarity regarding the factors that enhance school effectiveness. Using the latest version of the Programme for International Student
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Sovereign spread divergence owing to inflation and redenomination risk countered by unconventional monetary policy in the Eurozone Econ. Model. (IF 3.875) Pub Date : 2023-12-07 Gábor Dávid Kiss, Sabri Alipanah
Using a panel vector error correction (VECM) model, we assess sovereign spread divergence in the Eurozone. Recent literature defines redenomination risk as a member state's unilateral exit from the Eurozone, estimated by the quanto Credit default swaps (CDS) spread (qCDS). We show that sovereign spread divergence is driven not only by the qCDS but also by inflation and US dollar liquidity shocks. We
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The race between education and technology in Chile and its impact on the skill premium Econ. Model. (IF 3.875) Pub Date : 2023-12-07 Jorge Campos-González, Kelvin Balcombe
While studies using pre-2000 data for Chile implied that technological change drives the skill premium evolution, post-2000 data suggests that the supply of skilled labour expansion has reduced this premium. In contrast, literature shows a consistent link between technology and the growing demand for skilled labour, despite educational improvements, leading to skill premium increases. We examine these
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Stress and retirement Econ. Model. (IF 3.875) Pub Date : 2023-12-06 Raquel Fonseca, Ana I. Moro-Egido, Hugo Morin
This paper examines the bidirectional causal relationship between retirement and stress. We use data from the PSID for the period 2007–2015. By employing a simultaneous equations approach, we find that experiencing stress increases the likelihood of retirement by approximately 34.8 percentage points, whereas retirement lowers the probability of feeling stress by 19.6 percentage points. We obtain consistent
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Drug trafficking fuels violence leading to mass emigration: The case of Guatemala Econ. Model. (IF 3.875) Pub Date : 2023-12-03 Roxana Gutiérrez-Romero
Emigration from Guatemala has surged in recent decades and been studied primarily in relation to the United States, overlooking that Mexico has also become an important destination. Recent literature suggests violence is fueling migration, but the causal mechanisms remain poorly understood. We estimate the impact of violence on emigration crossings from Guatemala during 2009–2017 using the Survey of
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Nexus between inflation and inflation expectations at the zero lower bound: A tiger by the tail Econ. Model. (IF 3.875) Pub Date : 2023-12-01 Muhammad Ali Nasir, Toan Luu Duc Huynh
Ultra-low policy rates and zero lower bounds (ZLB) have been major issues for monetary policy formulation. In this context, we investigate the nexus between inflation and inflation expectations. Employing a non-linear ADRL framework on UK and Canadian datasets, we find significant asymmetries in the nexus among inflation and inflation expectations and their determinants, including labour market slack
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Structural gravity and the gains from trade under imperfect competition: Quantifying the effects of the European Single Market Econ. Model. (IF 3.875) Pub Date : 2023-11-25 Benedikt Heid, Frank Stähler
The structural gravity model is the workhorse model in international trade to estimate the drivers of trade costs. We propose a new gravity estimation procedure that allows us to disentangle exogenous trade costs and endogenous aggregate markups under oligopoly. Our method can be easily implemented in standard gravity data sets, and we illustrate it by analyzing the competition and welfare effects
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Discrepancy and cross-regional bias in sovereign credit ratings: Analyzing the role of public debt Econ. Model. (IF 3.875) Pub Date : 2023-11-25 Oussama Ben Hmiden, Didier Tatoutchoup, Pierre Nguimkeu, Donatien Avelé
Differences in sovereign ratings from major credit rating agencies (CRAs) generate debate among scientists and practitioners, with prior literature attributing these discrepancies to subjective factors. Using panel data from 70 countries from 2011 to 2018, we examine whether the observed heterogeneity in CRAs' ratings can be associated with cross-regional discrimination. While sovereign ratings among
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Securitization, shadow banking system and macroprudential regulation: A DSGE approach Econ. Model. (IF 3.875) Pub Date : 2023-11-25 Federico Lubello, Abdelaziz Rouabah
We investigate the role of macroprudential policy in the presence of traditional banks and shadow intermediaries through the lens of a dynamic, stochastic, general equilibrium (DSGE) model. We examine how the shadow financial system affects macroeconomic activity and financial stability via the transmission channels of the securitization market. In general equilibrium, securitization leads to the emergence
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The determinants of systemic risk contagion Econ. Model. (IF 3.875) Pub Date : 2023-11-18 Burak Sencer Atasoy, İbrahim Özkan, Lütfi Erden
The elevated interconnectedness of the global financial system has resulted in an increased frequency of financial crises, characterized by the swift transmission of turmoil between countries. This study introduces a novel quantile-connectedness-based contagion metric and investigates the drivers of systemic risk contagion, employing methodologies that address endogeneity and time-variation. We analyze
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Editorial of the special issue on: Digital Innovation and Financial Access for SMEs Econ. Model. (IF 3.875) Pub Date : 2023-11-15 Dong Xiang
Abstract not available
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Optimal planning of technological options and productivity distribution dynamics Econ. Model. (IF 3.875) Pub Date : 2023-11-13 Orlando Gomes
How does the distribution of productivity levels between firms change over time? What are the drivers of imitation and innovation? How much will production units invest in research and/or technology adoption? These are some of the questions often addressed by economists to enhance our understanding about technological progress and economic growth. This study contributes to the literature by examining
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A signaling theory of reservation cancellation policies Econ. Model. (IF 3.875) Pub Date : 2023-11-05 Yukyeong Choi, Jeong-Yoo Kim
We examine the signaling effect of a hotel’s reservation cancellation policy. We find separating equilibria in which the refund rate indicates high quality. Consumers may cancel their hotel reservations due to unforeseen events. We examine two cases: one in which an unforeseen event may reduce the reservation holder’s valuation to zero if consumers have no other purpose and the other in which the valuation
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Unraveling the price-concentration relationship: The Role of national distribution centers in Chilean supermarket industry consolidation Econ. Model. (IF 3.875) Pub Date : 2023-11-06 Fernando Díaz, Alexander Galetovic, Roberto Muñoz, Jocelyn Tapia
We examine the relationship between prices, costs, concentration, and the intensity of competition in the Chilean supermarket industry during its consolidation process in the late 1990s. This process was characterized by increased concentration, lower prices paid by consumers, and higher levels of competition between firms. We argue that behind this phenomenon lies the adoption of National Distribution
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Life expectancy, fertility, and retirement in an endogenous-growth model with human capital accumulation Econ. Model. (IF 3.875) Pub Date : 2023-11-06 Hung-Ju Chen, Shang-Chieh Huang, Koichi Miyazaki
This paper analyzes how the improvement in life expectancy affects fertility, educational investments, retirement, and economic growth based on an overlapping-generations model with human capital accumulation. We show that if the labor productivity of the old is greater (lower) than a critical value, then higher life expectancy will raise (reduce) fertility. Moreover, agents will postpone retirement
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The impact of joint events on oil price volatility: Evidence from a dynamic graphical news analysis model Econ. Model. (IF 3.875) Pub Date : 2023-11-09 Lu-Tao Zhao, Dai-Song Wang, Zhong-Yuan Ren
The analysis of event-oriented oil market risk deserves attention owing to the diversity, complexity and time variant of the oil-related events. From the aspect of oil price volatility, we examine the dynamic impact of joint events of different aspects on the oil market using graph analytical models and the proposed value-at-risk estimation approach. Based on the construction and evaluation of news