Search results for "Short run"
showing 10 items of 21 documents
Ownership, responsibility and leadership – a historical perspective
1999
The aim of this article is to present the great lines of managerial thoughts concerning ownership, business, social responsibility and leadership. The perspective of consideration is historical, and especially conceptual. We noticed that in the twentieth century a modern business ideology began to take form. Old suppositions according to the classical economic theory about the nature of economic activities started to give way when the modern professional manager type came into the management of the firm. At that time also there developed the idea of the firm as an institution with many targets. The position of the firm in society changed, people started to make demands for a wider social re…
A wavelet analysis of the ripple effect in UK regional housing markets
2021
Abstract The paper aims at gaining insights on the spatio-temporal mechanism of house price spillovers, also known as ripple effect, among 12 UK regional housing markets, over the period 1973–2018. From a policy perspective, it is essential to discriminate if the effects of a shock decay more slowly along the geographical dimension as compared to the decay along the time dimension. We enter the debate in a novel manner by using some wavelet analysis tools (wavelet coherence and phase differences amongst others) which reveal the spectral characteristics of a series and show how different periodic components of housing returns evolve over time. Results are interesting. Spillovers from London …
Demography and Economic Growth in Spain: A Time Series Analysis
2003
In this paper, advanced time series econometric tools are employed to test the existence of relationships among demographic and macroeconomic variables in Spain along the 1960-2000 period. Annual data for the total fertility rate, infant mortality rate, per capita gross domestic product and wages are used in the empirical analysis. We first examine the bivariate Granger causality to look for short run relations. Then, a multivariate cointegration analysis is carry out, showing that two long run relationships among the variables exist with statistically significant coefficients. From these cointegration vectors, the vector error correction model is estimated to test the endogenous or exogeno…
Instruments, rules, and household debt: the effects of fiscal policy
2015
In this paper, we look at the interplay between the level of household leverage in the economy and fiscal policy, the latter characterised by different combinations of instruments and rules. When the fiscal rule is defined on lump-sum transfers, government spending or consumption taxes, the impact multipliers of transitory fiscal shocks become substantially amplified in an environment of easy access to credit by impatient consumers, regardless of the primary instruments used. However, when the government reacts to debt deviations by raising distortionary taxes on income, labour or capital, the effects of household debt on the size of the impact output multipliers vanish or even reverse, no …
On Legal Cooperation and the Dynamics of Legal Convergence
2010
In this paper, we study the dynamics of legal convergence and the comparison between the different instruments of legal convergence based on cooperative strategies (i.e., harmonization and unification) or not. To study these questions we use a model with two nation-states which is inspired in part by that used in Carbonara and Parisi (2008) where preferences of each nation-state are such that it is costly to change the law, but it is also costly to have a different legal system from the other nation-state. We show that legal unification could be achieved in the long-run through small step by step changes despite the existence of huge harmonization costs in the short run. We also show that l…
A Long Term View on the Short Term Co-movement of Output and Prices in a Small Open Economy
2012
- One assumption behind inflation targeting as objective for monetary policy is that inflation rates in the short run to some extent reflect output cycles. The present paper investigates the historical co-movements of output and prices for a small open raw material based economy, in this case Norway 1830 – 2006. Looking at contemporaneous movements we find more often negative correlations between the two variables than positive. The correlations do not give any evidence of causality. However, they may indicate that supply side shocks, often caused by the foreign sector, were more important for historical output cycles in Norway than assumed hitherto
Structural reforms in a debt overhang
2014
We assess the effects of reforms in product and labor markets in a model economy featuring credit restrictions and pre-existing long-term debt. Both elements, which are core features of the current scenario faced by some euro area countries, combine to produce a slow and protracted deleveraging of the private sector and a persistent recession following a negative financial shock. In this environment, we show that product and labor market reforms may stimulate output and employment even in the short run, despite their defl ationary effects. Furthermore, by favoring a faster recovery of investment and collateral values, product market reforms bring forward the end of deleveraging and the exit…
Deciphering the Macroeconomic Effects of Internal Devaluations in a Monetary Union
2020
We study the macroeconomic effects of internal devaluations undertaken by a periphery of countries belonging to a monetary union. We find that internal devaluations have large and positive output effects in the long run. Through an expectations channel, most of these effects carry over to the short run. Internal devaluations focused on goods markets reforms are generally more powerful in stimulating growth than reforms aimed at moderating wages, but the latter are less deflationary. For a monetary union with a periphery the size of the euro area's, the countries at the periphery benefit from internal devaluations even at the zero lower bound (ZLB) of the nominal interest rate. Nevertheless,…
A Dynamic Model of Open Source Vs Proprietary R&D
2017
Abstract We propose a dynamic model in which firms compete to produce sequential and cumulative innovations, and in which the more firms do research in one sector the more likely it is that one of them innovates. Firms choose research effort and whether to patent innovations or to use an Open Source license like the General Public License. We show that ( i ) patents generate a larger stationary reward but foreclose research within a sector, and that ( ii ) Open Source generates a smaller stationary reward but allows everyone to use the technology, and therefore, by attracting firms to the sector, it induces a faster pace of innovation. We characterize all the equilibria of the model and sho…
Long-Run Determinants and Short-Run Dynamics of the Trade Balance in the Eu-15 Countries
2016
Several studies have analyzed the long-run determinants of current account balances using panel cointegration techniques. In this paper we will study both the long-run determinants and the short-run dynamics of the trade balances in the EU-15 countries. We will analyze each country separately and decompose the aggregate trade balance into the intra balance (trade balance vis-a-vis euro area) and the extra balance (trade balance vis-a-vis the rest of the world). Overall, our results suggest that there are significant differences in the long-run relations across the EU-15 countries which might be overlooked in the panel cointegration studies. In most of the countries there is a long-run coint…