the collateral channel how real estate shocks affect corporate investment abstract what is the impact of real estate prices on corporate investment in the presence of financing frictions firms use pledgeable assets as collateral to finance new projects through this collateral channel shocks to the value of real estate can have a large impact on aggregate investment to compute the sensitivity of investment to collateral value we use local variations in real estate prices as shocks to the collateral value of firms that own real estate over the 1993 2007 period the representative us corporation invests 0 06 out of each 1 of collateral jel d22 g31 r30

negativity in an almost ideal import demand system estimates of demand systems consistent with the underlying theory of a utility maximizing consumer are necessary if accurate welfare predictions are to be made in this paper we concentrate upon the negativity constraint and assess its validity using the almost ideal demand system subject to adding up homogeneity and symmetry applied to detailed trade and production data in the context of an import allocation model given the overwhelming rejection of negativity we consider a number of increasingly restrictive conditions which can be applied to the price parameters to try and achieve negativity over the sample data in general it is found that very tight constraints on substitution effects have to be imposed which remove the flexible nature of the model

deriving a flexible mixed demand system the normalized quadratic model this article deals with the specification of a locally flexible and theory consistent system of mixed demand functions a framework that allows for a rich set of possibilities about what is assumed as exogenous in a demand model a coherent mixed demand system is derived by using the restricted expenditure function typically studied in the related area of rationed demands the method is implemented by a new normalized quadratic nq parameterization of the restricted expenditure function the resulting nq mixed demand system is illustrated with an application to a nine good model of the italian demand for vegetables

the ir relevance of real wage rigidity in the new keynesian model with search frictions we explore the role of real wage dynamics in a new keynesian business cycle model with search and matching frictions in the labor market both job creation and destruction are endogenous we show that the model generates counterfactual inflation and labor market dynamics in particular it fails to generate a beveridge curve vacancies and unemployment are positively correlated introducing real wage rigidity leads to a negative correlation and increases the magnitude of labor market flows to more realistic values however inflation dynamics are only weakly affected by real wage rigidity this is because of the presence of labor market frictions which generate long run employment relationships the measure of real marginal cost that is relevant for inflation dynamics via the phillips curve contains a dynamic component that does not necessarily move with real wages

generalized models of japanese demand for fish given a relative lack of knowledge about japanese consumer preferences for fish japanese fish demand is modeled using both marshallian ordinary and inverse demand systems each of which nests a number of competing specifications results indicate that the inverse demand systems dominate the ordinary demand systems in forecasting performance and in nonnested tests the inverse system suggests that japanese fish prices are less responsive to changes in consumption than found in previous studies

a bayesian approach to aggregation in demand systems smoothing with perfect substitution priors demand analysis requires aggregation of commodities some are imposed at the data collection level leaving some for the estimation level when data are collected the implicit assumption underlying the aggregation is perfect substitutability one gallon of gasoline is viewed by consumers as equivalent to another gallon hence the two are added together while such aggregation can be carried out further by the data analyst it is difficult to incorporate perfect substitutability into the estimation of direct demand systems perfect substitution in that context implies discontinuous demand functions which are not nested within standard empirical demand systems perfect substitution is much more easily handled in a system of inverse demands though an empirical method to impose perfect substitutability in an inverse demand system has not previously appeared in the literature in this article we develop such a method which allows perfect substitutability to be imposed as a prior restriction we use leame

the ins and outs of european unemployment in this paper we study the contribution of inflows and outflows to the dynamics of unemployment in three european countries the united kingdom france and spain all countries are interesting in their own right and in the comparison with each other britain s labour markets were strictly regulated up to the mid 1980s but they have been liberalized since then france is still a regulated economy compared with britain with unemployment averaging about 8 spain has had the biggest rise in unemployment in europe reaching 24 in the mid 1990s but policy reforms and fast growth since then brought it down to a level below france s we compare performance in these three countries making use of both administrative and labor force survey data we find that the impact of the 1980s reforms in britain is evident in the contributions of the inflow and outflow rates the inflow rate became a bigger contributor after the mid 1980s although its significance subsided again in the late 1990s and 2000s in france the dynamics of unemployment are driven by the outflow rate virtually entirely which is consistent with a regime with strict employment protection legislation in spain however both rates contribute significantly to the dynamics perhaps as a consequence of the prominence of fixed term contracts since the late 1980s

the ins and outs of uk unemployment this study shows that in the uk increases in unemployment in a recession are driven by rises in the separation rate a new decomposition of unemployment dynamics is devised that does not require unemployment to be in steady state at all times this is important because low uk transition rates one quarter the size of the us imply substantial deviation of unemployment from steady state near cyclical turning points in periods of moderation the job finding rate is shown to have most influence on uk unemployment dynamics evidence comes from the first study of monthly data derived from individuals labour market spells recorded in the british household panel survey from 1988 to 2008

an inverse demand system for new england groundfish welfare analysis of the transition to catch share management the welfare effects of the 2010 transition from days at sea to catch share management in the northeast u s groundfish fishery are examined by combining a model of groundfish demand with a simulation based model of supply counterfactual supply is constructed based on the days at sea system that was recalibrated to meet mandated conservation goals due to the decreases in catch that were required to meet those goals the 2010 policy undoubtedly resulted in worse outcomes for both producers and consumers compared to 2009 however the conservation equivalent days at sea system would have been far worse for both consumers and producers copyright 2013 oxford university press

the impact of supply constraints on house prices in england we test the theoretical prediction that house prices respond more strongly to changes in local earnings in places with tight supply constraints using a unique panel dataset of 353 local planning authorities in england between 1974 and 2008 exploiting exogenous variation from a policy reform vote shares and historical density to identify the endogenous constraints measures we find that regulatory constraints have a substantive positive impact on the house price earnings elasticity the effect of constraints due to scarcity of developable land is largely confined to highly urbanised areas and uneven topography has a quantitatively less meaningful impact

price and quantity endogeneity in demand analysis evidence from directed acyclic graphs we propose to use the emerging method of directed graphs to study price quantity endogeneity issues in empirical demand analysis the approach is illustrated through the examination of u s meat consumption we find that for two major meat products beef and poultry retail prices contemporaneously caused quantities consumed thus were predetermined in contrast the quantity consumed of pork appeared to be predetermined relative to its price

a precursor to muth tinbergen s 1932 model of rational expectations this paper describes a model published in 1932 in which explicitly rational expectations are used to study a dynamic problem of intertemporal inventory allocation the model is very similar to muth 1961 except that the stochastic process in the latter is serially correlated whereas in tinbergen s model the disturbances are serially uncorrelated hence tinbergen was able to solve a rational expectations model thirty years before muth s much more well known contribution copyright 1991 by royal economic society

job destruction and propagation of shocks this paper considers propagation of aggregate shocks in a dynamic general equilibrium model with labor market matching and endogenous job destruction cyclical fluctuations in the job destruction rate magnify the output effects of shocks as well as making them much more persistent interactions between capital adjustment and the job destruction rate play an important role in generating persistence propagation effects are shown to be quantitatively substantial when the model is calibrated using job flow data incorporating costly capital adjustment leads to significantly greater propagation

housing markets consumption and financial liberalisation in the major economies abstract this paper analyses the implications of relaxing credit restrictions in housing finance markets a theoretical model of the interaction of financial and housing markets and forward looking agents is developed the effects of financial liberalisation in the model are analysed and evidence from the u s a and u k on the impact of easing credit restrictions is presented estimates are also made of the degree to which credit restrictions may bind on households in those countries where the range of mortgage products on offer is still more limited than in the u k and u s a simulations are undertaken to gauge the effect on consumption saving and bequests of wealth of possible future convergence in national systems of housing finance

house prices home equity based borrowing and the u s household leverage crisis us household leverage sharply increased in the years preceding the 2007 eco nomic recession the top panel of figure 1 shows the steady rise in household debt since 1975 which accelerated beginning in 2002 in just five years the household sector doubled its debt balance in comparison the contemporaneous increase in corporate debt was modest the middle panel shows that the increase in household debt from 2002 to 2007 translated into a striking rise in household leverage as mea sured by the debt to income ratio during the same time period corporate leverage declined the dramatic absolute and relative rise in us household leverage from 2002 to 2007 is unprecedented compared to the last 25 years one reason for the rapid expansion in household leverage during this period is that mortgage credit became more easily available to new home buyers mian and sufi 2009 strong house price appreciation from 2002 to 2006 however which may have been fueled by the availability of mortgage credit to a riskier set of new home buyers could also have had an important feedback effect on household lever age through existing homeowners given that 65 percent of us households already owned their primary residence before the acceleration in house prices the feedback from house prices to borrowing may be an important source of the rapid rise in household leverage that preceded the economic downturn our central goals in this study are to estimate how homeowner borrowing responded to the increase in house prices and to identify which homeowners responded most aggressively we examine this home equity based borrowing channel using a dataset consisting of anonymous individual credit files of a national consumer credit bureau agency we follow a random sample of over 74 000 us homeowners who owned their homes as of 1997 at an annual frequency from the end of 1997 until the end of 2008 the bottom panel of figure 1 plots the growth in debt of 1997 homeowners over time and shows that existing homeowners borrow significantly more debt as their house prices appreciate from 2002 to 2006 while the aggregate trend is suggestive

market delineation and demand structure this paper addresses the relationship between the cointegration approach to market delineation and the more traditional approach of analyzing the demand structure among different products in terms of degree of substitutability cointegration tests for market delineation and estimation of a dynamic system of demand equations are undertaken utilizing the same data set the data set consists of three high quality seafood products in the european union the results are encouraging as the results from the two approaches are not only compatible but are also complementary in the sense that they provide more information together than they do separately

housing really is the business cycle what survives the lessons of 2008 09 the downturn of 2008 09 has confirmed that i housing is the single most critical part of the u s business cycle ii the proper conduct of monetary policy needs to be cognizant that choices made at one point in time affect the options later and iii the best time to intervene in the housing cycle is when the volume of building is above normal and growing more so what was different this time was the rapid and substantial decline in home prices

booms and busts in the uk housing market the often volatile behaviour of uk house prices between 1957 and 1994 is analysed in an annual econometric model theory suggests that financial liberalisation of mortgage markets in the 1980s should have led to notable shifts in house price behaviour the evidence supports the predictions of theory suggesting shifts took place in wealth effects as in the consumption function and that real interest rates and income expectations became more important the presence of transactions costs suggests important nonlinearities in house price dynamics the paper also contains an explicit econometric treatment of expectations demography supply spillovers from the rented sector and of composition biases in the official house price index

demand systems and the true subindex of the cost of living for pharmaceuticals this paper investigates the demand for prescription pharmaceuticals at the retail level we use complete demand systems to investigate elasticity for major classes of pharmaceuticals we estimate both a regular and an inverse demand system using a differential version of the rotterdam model we find that both systems yield negative and statistically significant own price elasticities the results indicate that pharmaceutical demand curves are not perfectly inelastic as some industry commentators suggest we use the results of the complete demand system and a variant of a formula developed by balk 1990 to derive a cost of living subindex for retail pharmaceuticals we find that retail pharmaceutical prices using our index rise faster than wholesale prices calculated either by the bls or by the methods developed by berndt et al 1993

differential consumer demand systems it is shown in this paper that several well known systems like the rotterdam model and the almost ideal demand system can be seen as different parametrizations of the budget share differential equation using a third parametrization a new system called the cbs system is developed and discussed special attention is given to the relative price version of the system and in particular to the special case of preference independence some estimates for the netherlands based on time series for 1953 1981 using various approaches are presented

the cyclicality of separation and job finding rates this paper uses cps gross flow data to analyze the business cycle dynamics of separation and job finding rates and to quantify their contributions to overall unemployment variability cyclical changes in the separation rate are negatively correlated with changes in productivity and move contemporaneously with them while the job finding rate is positively correlated with and tends to lag productivity contemporaneous fluctuations in the separation rate explain between 40 and 50 percent of fluctuations in unemployment depending on how the data are detrended this figure becomes larger when dynamic interactions between the separation and job finding rates are considered

effects of income distribution in an inverse demand system evidence from chinese household survey data this study provides an empirical analysis of the impact of changes in income distribution on food demand in china using data from china health and nutrition survey a new parametric form of an inve

equilibrium unemployment job flows and inflation dynamics this paper develops a general equilibrium model to explain a set of facts regarding job flows unemployment and inflation dynamics it integrates a theory of equilibrium unemployment into a monetary model with nominal price rigidities the labor market displays matching frictions and endogenous job destruction the model can explain the cyclical behavior of unemployment job creation job destruction and the joint fluctuations of the labor input along both the extensive and the intensive margin conditional on a shock to monetary policy allowing for variation of the labor input at the extensive margin leads to a significantly lower elasticity of marginal costs with respect to output this helps to explain the sluggishness of inflation and the persistence of output after a monetary policy shock

homeowner borrowing and housing collateral new evidence from expiring price controls i empirically analyze how changes to the collateral value of real estate assets affect homeowner borrowing behavior while previous research has documented a positive relationship between house prices and home equity based borrowing a key empirical challenge has been to disentangle the role of collateral constraints from that of wealth effects in generating this relationship to isolate the role of collateral constraints i exploit the expiration of resale price controls on owner occupied housing units created through an inclusionary zoning regulation in montgomery county maryland because the duration and stringency of the price controls are set by formula and known in advance their expiration has no effect on expected lifetime wealth but directly shocks collateralized borrowing capacity using data on all transactions and loans secured against every property in the county from 1997 2012 i estimate that the marginal propensity to borrow out of increases in housing collateral induced by expiring price controls is between 0 04 and 0 13 the magnitude of this effect is correlated with a homeowner s initial leverage and indicates that a significant fraction of the additional borrowing arising from house price increases is due to relaxing collateral constraints additional analysis of residential investment and ex post loan performance further suggests that borrowers used at least some portion of the extracted funds to finance current consumption and investment expenditures these results highlight the importance of collateral constraints for homeowner borrowing and suggest a potentially important role for house price growth in driving aggregate consumption

a varying coefficient approach to global flexibility in demand analysis a semiparametric approximation to reduce dimensionality issues this article derives a globally flexible demand system that can be estimated non parametrically with a specially devised temporal kernel statistical and economic results from a meat demand application underscores the usefulness of a temporal kernel in globally approximating an integrable demand system

estimating structural change with smooth transition regressions an application to meat demand this paper explores the role of structural change in systems of demand equations specifically we adapt the time varying regression framework of lin and terasvirta 1994 which in turn is related to the dynamic smooth transition models introduced by terasvirta 1994 unlike previous efforts at modeling structural change in demand systems we do not impose the nature of the change to be monotonic several non monotonic alternatives are considered an application is presented using the almost ideal inverse demand system iaids applied to u s meat demand data 1960 2004 results show the importance of modeling structural change and that moreover the best fitting model is associated with a form of symmetric non monotonic structural change

unemployment dynamics in britain we examine the inter related dynamics of the unemployment flows and stock our model allows them to be linked through the standard accounting identity but also through behavioural relationships we find that for the uk the bulk of the correlation between duration and the unemployment stock arises from the dependence of duration on unemployment taking careful account of the inter temporal identity outflow shocks have contributed little to the evolution of unemployment since the late 1960s given that the correlation of duration and unemployment arises from the behavioural relationship we show that unemployment dynamics arise mostly from shocks to the inflow unemployment remains one of europe s more pressing economic and social problems as highlighted in the eu s lisbon declaration of 2000 a dynamic approach to unemployment starts from the recognition that unemployment is a stock and changes through shocks to the outflow and inflow the research and policy focus has generally been on the outflow process or equivalently unemployment duration a glance at figure 1 shows why this might be so it reveals a very strong co movement of the unemployment rate and the proportion of the unemployed out of work for a year or more analysts have used data like this to argue that the source of unemployment fluctuations has been changes in the outflow process 1 possibly as a consequence of this most policies directed at reducing unemployment focus on improving the search effectiveness and employability of the currently unemployed the unemployment flows and stock are related in quite complex ways and in this paper we focus on these inter related dynamics the model we use allows them to be linked in two ways first there is the simple accounting relationship whereby shocks to the flows accumulate in the stock second search and matching models suggest behavioural relationships of the flows depending on unemployment the presence of the nonlinear accounting identity in the model makes the analysis of the joint system problematic so we proceed sequentially investigating first one link and then the other we find that for the uk the bulk of the correlation between duration and the unemployment stock displayed in figure 1 arises from the dependence of the former on the latter we find a strong dependence of the outflow rate on unemployment taking careful account of the inter temporal identity on the other hand outflow shocks have contributed little to the evolution of unem

consumption dynamics in inverse demand systems an application to meat and fish demand in korea in this study meat and fish consumption is depicted in the form of inverse demand systems taking into consideration the intertemporal consumption behavior presented in the data the concept of intertemporal two stage budgeting process is applied to this system which explicitly incorporates intertemporal consumption behavior as summarized by the euler equation results based on korean meat and fish products indicate that the proposed method is promising furthermore the prices of meat and fish are quantity inflexible while the prices of beef and pork are sensitive to changes in consumption scale

mortgages and monetary policy mortgages are long term nominal loans under incomplete asset markets monetary policy is shown to affect housing investment and the economy through the cost of new mortgage borrowing and the value of payments on outstanding debt these channels distinct from traditional transmission of monetary policy are evaluated within a general equilibrium model persistent monetary policy shocks resembling the level factor in the nominal yield curve have larger effects than transitory shocks manifesting themselves as long short spread the transmission is stronger under adjustable than fixed rate mortgages higher persistent inflation benefits homeowners under frms but hurts them under arms

aggregation without separability composite commodity theorems in quantity space abstract in this paper we provide an obvious extension of the composite commodity theorems to the case of inverse demands where quantities and not prices can be used for aggregation first the hicks leontief commodity theorem is extended to the quantity space and then its generalised stochastic version is presented

house prices borrowing constraints and monetary policy in the business cycle i develop a general equilibrium model with sticky prices credit constraints nominal loans and asset prices changes in asset prices modify agents borrowing capacity through collateral value changes in nominal prices affect real repayments through debt deflation monetary policy shocks move asset and nominal prices in the same direction and are amplified and propagated over time the financial accelerator is not constant across shocks nominal debt stabilises supply shocks making the economy less volatile when the central bank controls the interest rate i discuss the role of equity debt indexation and household and firm leverage in the propagation mechanism finally i find that monetary policy should not target asset prices as a means of reducing output and inflation volatility

the inverse almost ideal demand system abstract a new demand system related to the almost ideal demand system aids of deaton and muellbauer is developed and illustrated this inverse aids iaids retains all of the desirable theoretical properties of the aids model with the exception of consistent aggregation an empirical issue is whether a linear approximation will work as well for the iaids as it has for the aids model since quantities are not as highly correlated as prices an application to u s meat demand demonstrates that the linear approximation of the iaids is excellent which enhanced the ease and range of application

an inverse demand analysis with introduction of quality effects an application to spanish consumption of fruit and vegetables this article analyzes consumer preference for fruit and vegetables when by using time series with socioeconomic characteristics of households there can be seemingly unobserved quality effects which are increased by aggregation the changes in spanish demand for fresh and processed fruit and vegetables over the period 1987 2000 are discussed following previous tests and analyses quantities are taken as predetermined and prices as matching the offer conditions thus quality effects based on the nutritional and or health value of the product are estimated from the error terms associated with the functions of the unit values quality variables are introduced as taste shifters in the inverse demand system laitinen theil model the results show the positive effects of quality differences on the normalized price for the group of products through own quality flexibilities and the negative effects between fresh and processed products through cross quality flexibilities

financial and fiscal shocks in the great recession and recovery of the spanish economy abstract in this paper we develop a new dsge model for a small open economy in a currency union estimated with bayesian methods which incorporates a banking and a housing supply sector consumers and entrepreneurs who accumulate debt a rich structure of fiscal variables and monopolistic competition in products and labor markets as an example of its capabilities the model has been estimated for the spanish economy which is an interesting example of a booming economy before the great recession and a country that particularly suffered from the negative consequences of the sovereign debt crisis and exhibited a robust recovery until 2019 our results show the usefulness of dsge models conveniently designed and extended to account for the interaction of real and financial variables and other prominent characteristics of modern economies as part of our toolkit to analyze the empirical evidence

long run price flexibilities for high valued uk fish species a cointegration systems approach in this paper the own and cross price flexibilities for four high valued species bass lobster sole and turbot landed in the uk are estimated system of equation models were developed using the vector error correction model vecm approach johansen s multivariate approach was used to obtain estimates of the long run steady state relationship vectors between fish prices and landings to find unique vectors i e no interdependent vectors zero restrictions on the coefficients of the price variables were applied so that the model effectively contained quantity independent variables only the resulting vectors were four unique cointegration long run relationships of monthly fish prices and landings various tests suggested that the variables were i 1 nonstationary variables the model also suggested that there are more than one cointegration vectors relationships between the variables it was found that bass has the largest absolute long run own price flexibility bass and lobster were found to be

flexible specification of mixed demand systems common flexible functional forms are not very useful for modeling mixed demand systems because derivation of mixed demands requires closed forms for both direct and indirect utility functions in this paper we study the alternative of using a direct approximation to mixed demands we develop a new approach to slutsky relations for mixed demand functions allowing formulation of a rotterdam mixed demand model the resulting mixed demand system is illustrated with an application to meat demand in canada

causality in demand a co integrated demand system for trout in germany this article focuses on causality in demand a methodology where causality is imposed and tested within an empirical co integrated demand model not prespecified is suggested the methodology allows different causality of different products within the same demand system the methodology is applied to fish demand on the german market for farmed trout and substitutes it is found that supply sources i e aquaculture and fishery are not the only determinant of causality storing tightness of management and aggregation level of integrated markets might also be important the methodological implication is that more explicit focus on causality in demand analyses provides improved information the results suggest that frozen trout forms part of a large european whitefish market where prices of fresh trout are formed on a relatively separate market redfish is a substitute on both markets the policy implication is that increased production of trout causes a downward pressure on fresh trout prices but froz

vacancy posting job separation and unemployment fluctuations abstract what is the relative importance of hiring and separation in driving unemployment fluctuations this paper presents a framework to decompose the moments of unemployment and study the respective contributions of vacancy posting a measure of firms hiring efforts and separation separation accounts for about 40 of unemployment s variance compared to 60 for vacancy posting and contributes to about 60 of unemployment steepness asymmetry the fact that unemployment increases faster than it decreases further while vacancy posting is on average the most important contributor of unemployment fluctuations the opposite is true around business cycle turning points when separation is responsible for most of unemployment movements

inverse demand systems and choice of functional form abstract barten empirical economics 18 1993 129 recently advocated estimation of a synthetic demand system that mechanically nests four other popular differential demand models this paper follows a similar strategy but in the context of four inverse share equation demand systems the inverse translog demand system itlds the inverse almost ideal demand system iaids the inverse lewbel demand system ilds and the inverse non separable linear expenditure system inles each of these specifications is artificially nested in a hybrid inverse demand system hids an empirical application to three categories of quarterly u s meat demand data over the period 1961 1996 indicates the hids is a preferred specification

home equity mobility and macroeconomic fluctuations how does a fall in house prices affect real activity this paper presents a business cycle model in which a decline in house prices reduces geographical mobility creating distortions in the labor market this happens because homeowners face declines in their home equity levels after which it becomes more difficult to provide the down payment required for a new mortgage loan unemployed homeowners therefore turn down job offers that would require them to move the model explains joint cyclical patterns in housing and labor market aggregates as well as the puzzling breakdown of the u s beveridge curve that occurred during 2009

the role of theoretical restrictions in forecasting with inverse demand models in recent years the theoretical restrictions of consumer demand have been examined in post sample forecasting exercises however this work has uniformly ignored the concavity restrictions of consumer demand in this paper we evaluate a series of normalized quadratic inverse demand system nqids specifications using rolling windows and generating one to four step ahead forecasts to estimate the models eleven categories of south atlantic fish are used from 1980 through 2001 in addition to the nqids we also examine the forecasting performance of a purely time series model we find that the best predictions are achieved using a composite forecast

forms of scale curves and differential inverse demand systems this article provides a new interpretation of the scale effects in differential inverse demand systems a scale curve is defined as a curve that shows how the expenditure share of a good or service changes as the consumption level changes it is shown that brown lee and seale s synthetic model has the same scale effects as do the box cox scale curves in this light their model is not a mere composite but a model in its own right an empirical illustration given for japanese fresh food demand suggests that the underlying scale curves differ from both linear and loglinear forms

instrument choice in a fishery abstract this paper considers the choice of regulatory instruments in a fishery fishing captains consumers and input suppliers each attempt to influence the regulator s choice of instruments the regulator chooses among instruments such as input restrictions entry restrictions or individual transferable quotas itqs regulatory instruments that result in zero fishery rents can only occur if the regulator places an extraordinary weight on the welfare of input suppliers relative to fishing captains and consumers indeed heterogeneity of fishing captains is neither necessary nor sufficient to obtain regulations that fail to generate fishery rents

the inverse imported factor demand system in thailand a cointegration analysis abstract in this paper we derive an inverse input demand system and apply cointegration analysis to the imported factor demand of thai industry we found one cointegrating vector and six common stochastic trends all short run flexibilities are less than one

elasticities in aids models comment green and alston have written two articles 1990 1991 for the journal on the correct method of calculating elasticities for the linear approximate almost ideal demand system la aids their articles are a departure from the typical approach to the la aids the la aids is generally used to estimate the parameters of deaton and muellbauer s almost ideal demand system aids the elasticity formulae for the aids are known green and alston s formulae are relevant only if the la aids is treated as a system in its own right such a treatment has merit however after checking the implications of treating the la aids as a system in its own right we discover that the la aids itself lacks merit

price formation of fish an application of an inverse demand system inverse demand systems explain price variations as functions of quantity variations they have properties analogous to those of regular demand systems there are very few examples of their empirical application in part this is due to lack of data for which price is the decision variable and the quantity given the case of fish landed at belgian sea ports appears to suit an inverse demand system well a rotterdam variant of such a system in estimated allais interaction intensities have been derived and show a reasonable pattern

the demand for salmon in france the effects of marketing and structural change two aspects of change in the market for salmon in france during the 1980s are the subject of econometric analysis first an hypothesis that a change in the distribution pattern for salmon with a larger share of the product traded further down the distribution channel has lead to more elastic demand is tested via demand analysis second the effects of advertising in expanding the salmon market is tested

what do vars tell us about the impact of a credit supply shock in the aftermath of the recent financial crisis a variety of structural var models have been proposed to identify credit supply shocks using a monte carlo experiment we show that the performance of these models can vary substantially with some identification schemes producing particularly misleading results when applied to us data the estimates from the best performing var models indicate on average that credit supply shocks that raise spreads by 10 basis points reduce gdp growth and inflation by 1 after one year these shocks were important during the great recession accounting for about half the decline in gdp growth this article is protected by copyright all rights reserved

optimal debt structure and the number of creditors within an optimal contracting framework we analyze the optimal number of creditors a company borrows from we also analyze the optimal allocation of security interests among creditors and intercreditor voting rules that govern renegotiation of debt contracts the key to our analysis is the idea that these aspects of the debt structure affect the outcome of debt renegotiation following a default debt structures that lead to inefficient renegotiation are beneficial in that they deter default but they are also costly if default is beyond a manager s control the optimal debt structure balances these effects we characterize how the optimal debt structure depends on firm characteristics such as its technology its credit rating and the market for its assets

information on sellers and buyers characteristics added value to explain price formation at primary fish markets in managed french scallop fisheries the aim of this article is to explore through a hedonic approach the factors that might explain the price variability for the french managed fishery of scallop at primary fish markets in addition to factors classically identified in the current literature like intrinsic product characteristics or markets situation the characteristics of operators are tested the relationships of loyalty between sellers and buyers and market assiduity are notably considered

global ex vessel fish price database revisited a new approach for estimating missing prices the global ex vessel fish price database ex vessel db reported in sumaila et al j bioecon 9 1 39 51 2007 was the first comprehensive database that presents average annual ex vessel prices for all commercially exploited marine fish stocks by nationality of the fishing fleet it contained over 30 000 reported price items covering the period from 1950 to the present and supplemented missing prices with estimates based on prices from a different year species group or fleet nationality this paper describes a revised missing price estimation approach focused on the computation of annual average international prices for each species group adjusted to domestic prices using the real exchange rate based on national purchasing power parity key advantages of the new approach are that it allows a larger number of reported prices to be used in the price estimation and accounts for relative price level differences that exist between countries our new approach should improve the estimates in regions where reported prices are scarce or non existent by linking domestic prices to the trends in international prices our analysis based on the revised ex vessel price estimates in real 2005 usd shows that the global marine fisheries landings have generated total value of usd 4 2 trillion since 1950 including usd 100 billion in 2005

on the consumer value of complementarity a benefit function approach the article develops a conceptual model of the consumer value of complementarity and illustrates its usefulness in an application to fisheries complementarity arises when some goods have a positive effect on the marginal value of other goods we propose a measurement of the value of complementarity based on the benefit function our econometric analysis of fish consumption in italy examines these issues with special attention given to dynamics our results show that while short run fish demand is characterized by substitution relationships complementarity does develop in the intermediate run and in the long run copyright 2007 oxford university press

ex ante efficiency of bankruptcy procedures abstract this paper suggests a framework to analyze the efficiency properties of bankruptcy procedures distinguishing between ex ante and ex post efficiency ex post efficiency consists in maximizing the ex post value of the insolvent firm whereas ex ante efficiency consists in maximizing the proceeds to creditors from the reorganization of the firm and providing incentives for the creditors to monitor the firm we show that the definition of creditors ownership rights over the company and the protection of the creditors seniority are crucial to asses the ex ante efficiency of a bankruptcy procedure

spatial competition with changing market institutions summary competition across space can be fundamentally altered by changes in market institutions we propose a framework that integrates market altering policy changes in the spatial analysis of competitive behavior and incorporates endogenous breaks in explanatory variables for spatial panel datasets this paper fills a gap in the literature between work focusing on spatial price responsiveness of agents and work on changes in market regulations that affect competition we apply the framework to an important current fishery management policy to explore how a change from aggregate to individual fishing quotas affects the spatial price responsiveness of fish processors copyright 2012 john wiley sons ltd

business cycle implications of mortgage spreads abstract how do aggregate quantities at the business cycle frequency respond to shocks to the spread between residential mortgage rates and government bonds using a structural var approach we find that mortgage spread shocks impact the real economy by both economically and statistically significant magnitudes a 100 basis point decline in the spread causes a peak increase in consumption residential investment and gdp by 1 6 percent 6 2 percent and 1 9 percent respectively presumably these effects are magnified when the policy rate is held fixed as was the case in the us during the recent implementation of unconventional monetary policy

the effects of government purchases shocks review and estimates for the eu in this article we review the theoretical consequences of government purchases shocks for both closed and open economies followed by a discussion of the empirical literature next we provide our own estimates for the eu countries we find that an increase in government purchases raises output consumption and investment and reduces the trade balance however the stimulating effect is weaker and the trade balance reduction is larger for the more open eu economies consistent with larger leakage effects further we show that government purchases shocks in large eu economies have non negligible consequences for economic activity in the main trading partners

house prices and job losses why are house prices 80 correlated with job losses over the uk business cycle my paper studies this striking fact together with the strong comovements between house prices and labour market variables in general first a regional panel is estimated to quantify the impact of house prices on the unemployment job finding and job separation rates whereby rejection rates of planning applications are used as instruments to find exogenous variation in house prices second an orthogonalised var is used to estimate the aggregate impact of house price shocks both methods confirm the large impact of house price shocks on labour market variables and credit supply to understand the mechanism a general equilibrium model with collateral constraints endogenous job separation and housing shocks is confronted with macroeconomic data via bayesian methods the results suggest that shocks to house prices i explain about 10 of output fluctuations and about 20 of fluctuations in corporate credit unemployment and job separation rates via the collateral channel over the forecast horizon and ii were a major cause in triggering the 1990 and 2008 recessions in the uk

introducing financial frictions and unemployment into a small open economy model the current nancial crisis has made it abundantly clear that business cycle modeling no longer can abstract from nancial factors it is also becoming increasingly clear that the stylized modeling of labor markets without explicit unemployment that is the current standard approach has its limitations some questions which the dominating extant business cycle models are mute on but that we would like to answer are how important are nancial and labor market frictions for the business cycle dynamics of a

labor market institutions and aggregate fluctuations in a search and matching model abstract this paper explores the influence of labor market institutions on aggregate fluctuations it uses a dynamic stochastic general equilibrium model characterized by search and matching frictions in the labor market and nominal rigidities in the goods market it finds that firing costs and unemployment benefits can have substantial effects on aggregate fluctuations increasing firing costs decreases the volatility of output employment and job flows due to the reduction in the mass of jobs sensitive to disturbances and lower incentives for firms to hire and fire workers hence firms adjust to shocks mainly through prices causing inflation to become more volatile raising unemployment benefits has the reverse effect on aggregate fluctuations

the benefit function approach to modeling price dependent demand systems an application of duality theory in this article we advocate more extensive use of the benefit function in specifying price dependent or inverse demand models we demonstrate how duality theory may be used to establish the interrelationships between the marshallian or hicksian inverse demands and luenberger s adjusted price functions allowing estimable inverse demands to be derived directly from a benefit function we estimate two systems of inverse demands for japanese quarterly fish consumption results indicate that the procedures and methods employed here appear promising and may prove beneficial for quantity and welfare analysis when modeling systems of inverse demand functions copyright 2009 oxford university press

sushi or fish fingers seafood diversity collapsing fish stocks and multispecies fishery management we present a model of a multispecies fishery and we show the following i consumer preferences for seafood diversity can trigger a sequential collapse of fish stocks under open access fishery ii the stronger the preferences are for diversity the higher is the need for coordinated multispecies regulation iii second best optimal management of only one or a few species is less strict than socially optimal management of the same species iv myopic regulation of one species ignoring spillovers to other species can cause depletion of other stocks that would not be depleted under open access

efficient estimation of hedonic inverse input demand systems this article is concerned with efficient estimation of characteristics demand we derive and estimate an inverse input demand system for quality characteristics by using 172 946 observations over 881 trading days in the icelandic fish auctions an improved estimation method based on an expanded random coefficient model is suggested as an alternative to the currently used two stage method of brown and rosen the estimates demonstrate the improved efficiency of the suggested method a number of empirical results emerge including a general increase in the demand for quality the purpose of hedonic price analysis is to determine how the price of a unit of a commodity varies with its characteristics that is to estimate the hedonic price function some recent examples of the estimation of hedonic price functions are nerlove combris lecocq and visser and mcconnell and strand however theory predicts that shifts in supply or demand affect the implicit price relationships between the overall price of the good and its individual characteristics and so we need to estimate the underlying demand and supply functions for the characteristics rosen developed a two stage method for analyzing hedonic markets in the first stage of this method the hedonic price function is estimated and in the second stage a system of demand and supply functions for characteristics is estimated using the shadow prices of the characteristics from the first stage as variables brown and rosen showed that this procedure could yield estimates of demand and supply functions that are mere transformations of the coefficients in the hedonic function they suggested the currently used two stage method using data from multiple markets this method utilizes the within market variation to iden

inverse demand systems and welfare measurement in quantity space most studies of welfare or cost benefit analyses are concerned with the welfare effects of price changes 11 19 27 33 50 there are however many situations in which policy options are directly related to quantity changes the welfare effects of price changes are analyzed with the traditional demand system in which commodity quantities are determined as functions of their prices the welfare effects of quantity changes on the other hand are associated with the inverse demand system in which commodity prices are dependent on their quantities in conventional welfare analysis of price change prices are taken to be exogenous or predetermined while quantities are endogenous in contrast in welfare analysis of quantity changes quantities are exogenous while prices are endogenous price based or dual welfare measures are relevant when there are well functioning competitive markets and quantities are fully adjusted to changes in prices on the other hand quantity based or primal welfare measures are useful in situations where there are constraints on commodity quantities or when transaction costs impede consumers from fully adjusting to changes in prices the choice between priceand quantity based welfare measures is empirical and proper measurement of welfare effects requires the knowledge as to which variable price or quantity is the exogenous one for individual consumers it may be reasonable to assume that the supply of commodities is perfectly elastic and therefore prices can be taken as exogenous but this assumption may not be tenable for consumers in the aggregate or if highly aggregated economy wide data are used to estimate demand relations at the aggregate level quantities are more properly viewed as exogenous than are prices although individual consumers make their consumption decisions based on given prices the quantities of commodities are predetermined by production at the market level and prices must adjust so that the available quantities are consumed 28 1 2

characteristics and hedonic pricing of differentiated beef demands we estimate a cbs system model of u s derived demand for meat we use this model 1 to examine relationships between three quality categories of beef and three other meats and 2 to simulate how taste shifts have affected demands for meats over time we extend previous studies by disaggregating wholesale beef production into three quality categories 1 usda choice grade or higher 2 usda select or lower and 3 cow and bull beef innovative features of our empirical model include a breakout of table cuts into choice and select and the use of a hedonic characterization of the two breakouts to value choice ness and beef ness our model demonstrates important shifts in separate demands for choice and select beef we show that separately the demand for choice grade beef declined in the 1980s and 1990s and the demand for select beef increased a departure from the relatively stable demand characterizations of more aggregated measures of combined choice and select beef jel classification q11 q13

long run implications of investment specific technological change an attempt is made to disentangle its effects from the more traditional hicksneutral form of technological progress the balanced growth path for the model is characterized and calibrated to u s national income and product account nipa data the quantitative analysis suggests that investment specific technological change accounts for the major part of growth jel e13 030 041 047

fewer fish for higher profits price response and economic incentives in global tuna fisheries management this paper evaluates industry wide economic incentives arising from changes in product prices in an industry exploiting a common renewable resource tropical tunas that is regulated via output limits changes in prices alter economic incentives by affecting revenues profits conservation and nonmarket public benefits economic incentives in industries exploiting common resources have been examined from multiple angles however industry level variation in market prices arising from changes in public regulation has not been explored we analyse the impact on economic incentives due to changes in output limits and market prices through estimation of ex vessel price and scale flexibilities for imported skipjack and yellowfin in thailand s cannery market the unitary scale flexibility estimated from the general synthetic inverse demand systems indicates no loss in revenue and even potential profit increases resulting from lower harvest levels that could arise from lower catch limits however for a revenue neutral or positive outcome to be achieved the three inter governmental tuna regional fisheries management organizations which manage the majority of the yellowfin and skipjack tuna in the pacific and indian oceans would have to coordinate multilaterally to set the catch limits for both species

local identification in dsge models abstract the issue of identification arises whenever structural models are estimated lack of identification means that the empirical implications of some model parameters are either undetectable or indistinguishable from the implications of other parameters therefore identifiability must be verified prior to estimation this paper provides a simple method for conducting local identification analysis in linearized dsge models estimated in both full and limited information settings in addition to establishing which parameters are locally identified and which are not researchers can determine whether the identification failures are due to data limitations such as lack of observations for some variables or whether they are intrinsic to the structure of the model the methodology is illustrated using a medium scale dsge model

preference variable impacts in direct and inverse differential demand systems preference variables are included in the inverse rotterdam model based on the tintner ichimura basmann relationship linking preference effects on quantities demanded to price effects and preference effects on marginal utilities restrictions are placed on the effects of the preference variables on the marginal utilities resulting in reductions in the parameter space for the preference variables in both direct and inverse demand systems the model is used to analyze impacts of product quality on fresh citrus demand

differential demand systems a further look at barten s synthesis barten s synthetic model is attractive to applied researchers since it is useful for testing the adequacy of the competing functional forms of differential demand systems including the popular rotterdam and almost ideal demand systems this article shows that the synthetic model is not a mere artificial composite of the known differential demand systems as it has been considered but rather viewed as a model in its own right it is demonstrated that at the individual consumer level barten s model has the same marginal budget shares as generated by specific forms of engel curves formulated by the box cox transformation

employment efficiency and sticky wages evidence from flows in the labor market i consider three views of the labor market in the first wages are flexible and employment follows the principle of bilateral efficiency workers never lose their jobs because of sticky wages in the second wages are sticky and inefficient layoffs do occur in the third wages are also sticky but employment governance is efficient i show that the behavior of flows in the labor market strongly favors the third view in the modern u s economy recessions do not begin with a burst of layoffs unemployment rises because jobs are hard to find not because an unusual number of people are thrown into unemployment

simultaneity and structural change in u s meat demand an inverse of the almost ideal demand system the iaids is developed in order to test the endogeneity of prices and quantities in the u s meat demand system the iaids has all the desirable theoretical properties of the aids except aggregation from the micro to the market level using annual data both prices and quantities appear to be endogenous within the entire meat market including livestock production costs and technical change indicators as instruments eliminates evidence of a mid 1970s demand change

job finding and separation rates in the oecd abstract we provide a set of comparable estimates of average monthly job finding and separation rates for over 20 oecd countries that can be used for the cross country analysis of labor markets