Following up on recent debates about sectoral systems of innovation and production, the paper introduces a heuristic framework for analyzing and explaining distinct patterns of technology-based sectoral change. The concept is based on two main interrelated influencing factors. The first is the...

I argue that in its adaptation from Karl Polanyi's The Great Transformation, the concept of embeddedness has itself undergone a great transformation. In the process, significant meanings of the concept have vanished, while others have been added. First I explore the different meanings the...

Conventional wisdom says that commitment eliminates the inflationary bias of monetary policy. However, this paper shows that the inflation bias can persist even when the central bank commits. A simple model is presented in which the central bank precommits by setting the policy instrument, and...

Regarding inflation as being a monetary phenomenon in the long-run is a widely-held view in modern macro economics. We analyse this topic by means of a P-star model. Based on the quantity theory of money, this approach explains inflation via a supposed equilibrium price level (P-star), which...

In several studies, hedonic methods have been used successfully for the ex post assessment of the accuracy of inflation measurement. Most of those studies relate to high-tech products, with respect to which traditional methods of compiling price indices often fail. We apply hedonic methods to...

Potential output is an elusive concept. This stands in sharp contrast to its prominent role in economic analysis. In particular, monetary targetting as practised by the Deutsche Bundesbank relies on an estimate of future potential output growth. Different approaches usually lead to fairly...

We investigate how joint production affects the likelihood of factor price equalization (FPE) through trade. Following up on recent contributions by Samuelson (1992) and Jones (1992), we propose to take the relative size of the FPE region of endowment distributions to measure this likelihood. We...