bluuebunny/crossref_metadata_2025_split huggingface dataset:
A Review of David Gottlieb’s Work on the Resolution of the Gibbs Phenomenon
Authors: Gottlieb Sigal , Jung Jae-Hun , Kim Saeja 
Published: September 2010

AbstractGiven a piecewise smooth function, it is possible to construct a global expansion in some complete orthogonal basis, such as the Fourier basis. However, the local discontinuities of the function will destroy the convergence of global approximations, even in regions for which the underlying function is analytic. The global expansions are contaminated by the presence of a local discontinuity, and the result is that the partial sums are oscillatory and feature non-uniform convergence. This characteristic behavior is called the Gibbs phenomenon. However, David Gottlieb and Chi-Wang Shu showed that these slowly and non-uniformly convergent global approximations retain within them high order information which can be recovered with suitable postprocessing. In this paper we review the history of the Gibbs phenomenon and the story of its resolution.
Learning Causal Relations in Multivariate Time Series Data
Authors: Chen Pu , Chihying Hsiao 
Published: September 2010

Abstract
Applying a probabilistic causal approach, we define a class of time series causal models (TSCM) based on stationary Bayesian networks. A TSCM can be seen as a structural VAR identified by the causal relations among the variables. We classify TSCMs into observationally equivalent classes by providing a necessary and sufficient condition for the observational equivalence. Applying an automated learning algorithm, we are able to consistently identify the data-generating causal structure up to the class of observational equivalence. In this way we can characterize the empirical testable causal orders among variables based on their observed time series data. It is shown that while an unconstrained VAR model does not imply any causal orders in the variables, a TSCM that contains some empirically testable causal orders implies a restricted SVAR model. We also discuss the relation between the probabilistic causal concept presented in TSCMs and the concept of Granger causality. It is demonstrated in an application example that this methodology can be used to construct structural equations with causal interpretations.
Testing for Breaks in Cointegrated Panels − with an Application to the Feldstein-Horioka Puzzle
Authors: Di Iorio Francesca , Fachin Stefano 
Published: September 2010

AbstractStability tests for cointegrating coefficients are known to have very low power with small to medium sample sizes. In this paper we propose to solve this problem by extending the tests to dependent cointegrated panels through the stationary bootstrap. Simulation evidence shows that the proposed panel tests improve considerably on asymptotic tests applied to individual series. As an empirical illustration we examined investment and saving for a panel of European countries over the 1960-2002 period. While the individual stability tests, contrary to expectations and graphical evidence, in almost all cases do not reject the null of stability, the bootstrap panel tests lead to the more plausible conclusion that the long-run relationship between these two variables is likely to have undergone a break.
An Idealized View of Financial Intermediation
Authors: Sissoko Carolyn 
Published: September 2010

Abstract
We consider an environment where the general equilibrium assumption that every agent buys and sells simultaneously is relaxed. We show that fiat money can implement a Pareto optimal allocation only if taxes are type-specific. We then consider intermediated money by assuming that financial intermediaries whose liabilities circulate as money have an important identifying characteristic: they are widely viewed as default-free. The paper demonstrates that default-free intermediaries who issue deposit accounts with credit lines to consumers can resolve the monetary problem and make it possible for the economy to reach a Pareto optimum.
Hidden Economies and the Socially Optimal Fiscal-Tax to Liquidity-Tax Ratio
Authors: Ercolani Marco G. 
Published: September 2010

AbstractDifferential tax analysis is used to show how the socially optimal fiscal-tax to liquidity-tax ratio changes with the relative size of the tax-evading hidden economy. The smaller the relative size of the hidden economy, the larger the optimal fiscal-tax to liquidity-tax ratio. The empirical cross-section and panel evidence supports this theoretical result.
Shadow Economies and Corruption All Over the World: Revised Estimates for 120 Countries
Authors: Schneider Friedrich , Buehn Andreas 
Published: September 2010

AbstractEstimations of the shadow economies for 120 countries, including developing, Eastern Europe and Central Asian and high income OECD countries over 1999 to 2006 are presented. The average size of the shadow economy (as a percent of “official” GDP) in 2004/05 in 76 developing countries is 35.5%, in 19 Eastern and Central Asian countries 36.7% and in 25 high income OECD countries 15.5%. An increased burden of taxation and social security contributions, combined with labour market regulations are the driving forces of the shadow economy. Furthermore, the results show that the shadow economy reduces corruption in high income countries, but increases corruption in low income countries. Finally, the various estimation methods are discussed and critically evaluated.
Production Constraints and the NAIRU
Authors: Driver Ciaran , Hall Stephen G. 
Published: September 2010

AbstractThis paper argues that the production constraints in the basic NAIRU model should be distinguished by type: capital constraints and labour constraints. It notes the failure to incorporate this phenomenon in standard macro models. Using panel data for UK manufacturing over 80 quarters we show that capital constraints became relatively more important during the 1980s as industry failed to match the increase in labour flexibility with rising capital investment.
The Single Currency’s Effects on Eurozone Sectoral Trade: Winners and Losers?
Authors: de Nardis Sergio , De Santis Roberta , Vicarelli Claudio 
Published: September 2010

AbstractIn this paper we study the effect of the single currency across industries for euro area members. This analysis may help to shed light on the main factors influencing the euro effect on trade flows. We intend to verify whether these factors are specific to individual sectors and/or countries or common to the entire euro area. We use a dynamic specification of an augmented gravity equation. Following the most recent econometric literature, we apply the “System GMM” dynamic panel data estimator of Blundell and Bond to avoid inconsistency and biases in the estimates, and introduce controls for heterogeneity.Aggregate sector results average out country-level behaviours that, on their turn, are affected by different (unobserved) responses of firms, endowed with diverse production costs, to the enhancing and dampening impacts due to the euro. Due to this reason, the cancelling out at aggregate level of heterogenous behaviours induces an aggregation bias. So it is not surprising that when moving from sector to sector/country analysis the picture becomes much more variegated, with the emergence of a whole range of winners and losers among industries in the different nation.Our empirical results are in line with theoretical framework we assumed as reference that considers the possibility of both stimulative and dampening effects coming from trade integration and points out the fact that sector exports impacts are the aggregation results of firm-level heterogenous behaviours.
The Demand for Currency Substitution
Authors: Seater John J. 
Published: September 2010

AbstractA transactions model of the demand for multiple media of exchange is developed. Some results are expected, and others are both new and surprising. There are both extensive and intensive margins to currency substitution, and inflation may affect the two margins differently, leading to subtle incentives to adopt or abandon a substitute currency. Variables not previously considered in the literature affect currency substitution in complex and somewhat unexpected ways. In particular, the level of income and the composition of consumption expenditures are important, and they interact with the other variables in the model. Independent empirical work provides support for the theory.
Welfare Effects of Intellectual Property in a North-South Model of Endogenous Growth with Comparative Advantage
Authors: Saint-Paul Gilles 
Published: September 2010

Abstract
This paper develops a model for analyzing the costs and benefits of intellectual property enforcement in LDCs. The North is more productive than the South and is the only source of innovator. There are two types of goods, and each bloc has a comparative advantage in producing a specific type of good. If comparative advantage is strong enough, even under piracy there are goods that the South will not produce. Piracy will then lead to a reallocation of innovative activity in favor of these goods. That may harm consumers (including consumers in the South) to the extent that these goods have smaller dynamic learning externalities than the other goods, and that their share in consumption is small. Thus, whether or not piracy is in the interest of the South depends on how important are the goods for which it has a comparative advantage to its consumers, and what the growth potential of these goods is. While, all else equal, the North tends to lose more (or gain less) from piracy than the South, because monopoly profits eventually accrue to the North, the South may lose more than the North if there is a strong enough home bias in favor of the goods for which it has a comparative advantage.
The New Growth Theories and Their Empirics after Twenty Years
Authors: Capolupo Rosa 
Published: September 2010

AbstractIn this work the author updates the reviews on endogenous growth theories in order to explore whether recent empirical studies have become more supportive of their main predictions. Among the core topics studied in the growth econometric framework, namely convergence, identification of growth determinants and factors responsible for growth differences in the data, the primary focus of this paper is on the last two. The author will review, from macro growth regressions, studies that test primarily the performance of endogenous models in terms of significance and robustness of the coefficients of growth determinants. By highlighting methodological issues and critical discussion, she argues that: (i) causal inference drawn from the empirical growth literature remains highly questionable, (ii) there are estimates for a wide range of potential factors but their magnitude and robustness are still under debate. Her conclusion, however, is that, if properly interpreted, the predictions of endogenous growth models are gathering increasing empirical support.
The Pre-Eminence of Theory versus the European CVAR Perspective in Macroeconometric Modeling
Authors: Spanos Aris 
Published: September 2010

AbstractThe primary aim of the paper is to place current methodological discussions in macroeconometric modeling contrasting the ‘theory first’ versus the ‘data first’ perspectives in the context of a broader methodological framework with a view to constructively appraise them. In particular, the paper focuses on Colander’s argument in his paper “Economists, Incentives, Judgement, and the European CVAR Approach to Macroeconometrics” contrasting two different perspectives in Europe and the US that are currently dominating empirical macroeconometric modeling and delves deeper into their methodological/philosophical underpinnings. It is argued that the key to establishing a constructive dialogue between them is provided by a better understanding of the role of data in modern statistical inference, and how that relates to the centuries old issue of the realisticness of economic theories.
DSGE Models and Central Banks
Authors: Tovar Camilo E. 
Published: September 2010

AbstractOver the past 15 years there has been remarkable progress in the specification and estimation of dynamic stochastic general equilibrium (DSGE) models. Central banks in developed and emerging market economies have become increasingly interested in their usefulness for policy analysis and forecasting. This paper reviews some issues and challenges surrounding the use of these models at central banks. It recognises that they offer coherent frameworks for structuring policy discussions. Nonetheless, they are not ready to accomplish all that is being asked of them. First, they still need to incorporate relevant transmission mechanisms or sectors of the economy; second, issues remain on how to empirically validate them; and finally, challenges remain on how to effectively communicate their features and implications to policy makers and to the public. Overall, at their current stage DSGE models have important limitations. How much of a problem this is will depend on their specific use at central banks.
The Balassa–Samuelson Hypothesis in Developed Countries and Emerging Market Economies: Different Outcomes Explained
Authors: García-Solanes José , Torrejón-Flores Fernando 
Published: September 2010

AbstractThis paper studies the Balassa–Samuelson effects in two areas with strong differences in economic development, sixteen OECD countries and sixteen Latin American economies. The USA is taken as a benchmark. Applying recent panel cointegration and bootstrapping techniques that solve for cross-sectional dependence and small panel size problems, we find some evidence for not rejecting the whole hypothesis in the LA area. In the context of OECD group, the second stage of the BS hypothesis, which relates relative sector prices with the real exchange rate, does not hold, probably because national markets remain to some extent segmented, as reflected in departures from PPP in the tradable sectors.
Climate Policy Options and the World Trade Organization
Authors: Hufbauer Gary Clyde , Kim Jisun 
Published: September 2010

Abstract
This paper examines whether the climate policy options policymakers are contemplating are compatible with core principles of the world trading system set forth in the General Agreement on Tariffs and Trade (GATT), the World Trade Organization (WTO), and Appellate Body decisions. The authors argue that border measures—both import restrictive measures and export subsidies—contemplated in US climate bills and the climate policies of other countries stand a fair chance of being challenged in the WTO. Given the prospect of foreseeable conflicts with WTO rules, the authors suggest that key WTO members should attempt to negotiate a new code that delineates a large “green space” for measures that are designed to limit GHG emissions both within the member country and globally. By “green space,” the authors mean policy space for climate measures that are imposed in a manner broadly consistent with core WTO principles even if a technical violation of WTO law could occur. To encourage WTO negotiating efforts along these lines, the authors recommend a time-limited “peace clause” to be adopted into climate legislation of major emitting countries. The peace clause would suspend the application of border measures or other extraterritorial controls for a defined period while WTO negotiations are under way.
Published as Policy Paper
Social Policy Targeting and Binary Information Transfer between Surveys
Authors: Gottlieb Daniel , Kushnir Leonid 
Published: September 2010

AbstractIn this paper we develop a methodology for identifying a population group surveyed latently in the (target) survey relevant for further processing, for example poverty calculations, but surveyed explicitly in another (source) survey, not suitable for such processing. Identification is achieved by transferring the binary information from the source survey to the target survey by means of a logistic regression determining group affiliation in the source survey by use of variables available also in the target survey. In the proposed methodology we improve on common matching procedures by optimizing the cut-value of the probability which assigns group affiliation in the target survey. This contrasts with the commonly used “Hosmer-Lemeshov” cut-values for binary categorization, which equates between the sensitivity and specificity curves. Instead we improve group identification by minimizing the sum of total errors as a percent of total true outcomes.The Jewish ultra-orthodox population in Israel serves as a case study. This idiosyncratic community, committed to the observance of the Bible is only latently observed in the surveys typically used for poverty calculation. It is explicitly captured in the social survey, which is not suitable for poverty measurement.This procedure is useful for ex-post enhancement of survey data in general.
Network Structure of Japanese Firms. Scale-Free, Hierarchy, and Degree Correlation: Analysis from 800,000 Firms
Authors: Konno Tomohiko 
Published: September 2010

Abstract
We analyze fundamental characteristics of the inter-firm transaction network through the data of 800,000 Japanese firms. We find that there exists a hierarchical structure and a negative degree correlation in this transaction network. We also find that this undirected network is a scale-free network. We bring to light these characteristics of the network and discuss why there is an important need to conduct research work on the actual network structure.
Heterogeneous Parameter Uncertainty and the Timing of Investment during Crisis
Authors: Ni Shawn , Ratti Ronald A. 
Published: September 2010

Abstract
We present a model in which investors observe the same macroeconomic data but have varying levels of information about the parameters that determine the distribution of the expected returns on investment. During a crisis that increases macroeconomic uncertainty and reduces asset prices, the threshold required return that triggers investment is lower for an informed investor than for an uninformed investor. Simulation of the model suggests that when macroeconomic uncertainty is high investment may increase, is mostly by informed investors, and as time goes on is progressively more by investors who were initially relatively uninformed about model parameters. For over 10,000 instances of firm-level FDI data for Korea from 1996 to 2001, regression results are consistent with the hypothesis that disproportionably more FDI is made by more informed investors during a period of high macroeconomic uncertainty.
Occupational Upgrading and the Business Cycle in West Germany
Authors: Büttner Thomas , Jacobebbinghaus Peter , Ludsteck Johannes 
Published: September 2010

AbstractThe occupational skill structure depends on the business cycle if employers respond to shortages of applicants during upturns by lowering their hiring standards. Devereux uses this implication to construct empirical tests for the notion of hiring standards adjustment (the so-called Reder hypothesis) and finds affirmative evidence for the U.S labour market. The authors replicate his analysis using German employment register data. Regarding the occupational skill composition they obtain somewhat lower but qualitatively similar responses to the business cycle despite of well known institutional differences between the U.S. and German labour market. The responsiveness of occupational composition wages to the business cycle is considerably lower in Germany.
Housing Wealth Isn’t Wealth
Authors: Buiter Willem H. 
Published: September 2010

Abstract
A fall in house prices due to a change in fundamental value redistributes wealth from those long housing (for whom the fundamental value of the house they own exceeds the present discounted value of their planned future consumption of housing services) to those short housing. In a closed economy representative agent model (the special case when the birth rate is zero, of the Yaari-Blanchard OLG model used in the paper), there is no pure wealth effect on consumption from a change in house prices if this represents a change in their fundamental value. When the birth rate is positive, higher fundamental house prices driven by the housing demand of future generations will boost current consumption.
There is a pure wealth effect on consumption from a change in house prices even in the representative agent model, if this reflects a change in the speculative bubble component of house prices.
Two other channels through which a fall in house prices can affect aggregate consumption are (1) redistribution effects if the marginal propensity to spend out of wealth differs between those long housing (the old, say) and those short housing (the young, say) and (2) collateral or credit effects due to the collateralisability of housing wealth and the non-collateralisability of human wealth. A decline in house prices reduces the scope for mortgage equity withdrawal. For given sequences of future after-tax labour income and interest rates, a fall in house prices will then depress consumption in the short run while boosting it in the long run.
The Crisis and Beyond: Thinking Outside the Box
Authors: Hillinger Claude 
Published: September 2010

Abstract
In this paper the author attempts an analysis of the current financial/economic crisis that is wider ranging and more fundamental than he has been able to find. He discusses alternatives to the financial bailouts and shows how the crisis could have been dealt with more efficiently and at little cost to taxpayers. Finally, the author discusses fundamental reforms that would reduce the volatility of financial markets and increase their efficiency. He reviews some social science literature that views the current crisis as an episode in the secular decline of the United States and more generally of the Western Democracies. The timidity of current reforms, which is striking when compared to those that followed the excesses of the Gilded Age and the Great Depression, can be understood in this framework. The author concludes that the industrialized world is now dominated by a ‘financial-political complex’ that maximizes speculative profits in good times and socializes losses in times of crisis.
A Tale of Two Debt Crises: A Stochastic Optimal Control Analysis
Authors: Stein Jerome L. 
Published: September 2010

Abstract
Creditors, banks and bank regulators should evaluate whether a borrower is likely to default. I apply several techniques in the extensive mathematical literature of stochastic optimal control/dynamic programming to derive an optimal debt in an environment where there are risks on both the asset and liabilities sides. The vulnerability of the borrowing firm to shocks from either the return to capital, the interest rate or capital gain, increases in proportion to the difference between the Actual and Optimal debt ratio, called the excess debt. As the debt ratio exceeds the optimum, default becomes ever more likely. This paper is “A Tale of Two Crises” because the same analysis is applied to the agricultural debt crisis of the 1980s and to the subprime mortgage crisis of 2007. A measure of excess debt is derived, and we show that it is an early warning signal of a crisis in both cases.
Selection Wages and Discrimination
Authors: Schlicht Ekkehart 
Published: September 2010

AbstractApplicants for any given job are more or less suited to fill it, and the firm will select the best among them. Increasing the wage offer attracts more applicants and makes it possible to raise the hiring standard, thereby improving the productivity of the staff. Wages that optimize on the trade-off between the wage level and the productivity of the workforce are known as selection wages. As men react more strongly to wage differentials than females, the trade-off is more pronounced for men and a profit-maximizing firm will offer a higher wage for men than for women in equilibrium. The argument is not confined to issues of sex discrimination; rather it is of relevance for all labor markets where labor heterogeneity is important and supply elasticities vary systematically across occupations.