Characteristic roots, or eigenvalues, are a useful tool in the study of linear dynamic economic models. The relation between the roots and the model coefficients are expressed in the derivatives of the former with respect to the latter. In general, the roots are complex numbers. This note...

A simple model of “hourglass†problems is presented. For such problems, the benefit of a national policy measure is propagated to all countries through one single world-wide variable.<span style="font-family: NimbusRomNo9L-Regu; font-size: small;"><span style="font-family: NimbusRomNo9L-Regu; font-size: small;">The prime example is the effect of the reduction of CO</span></span><span style="font-family: NimbusRomNo9L-Regu; font-size: xx-small;"><span style="font-family: NimbusRomNo9L-Regu; font-size: xx-small;">2 </span></span><span style="font-family: NimbusRomNo9L-Regu; font-size: small;"><span style="font-family: NimbusRomNo9L-Regu; font-size: small;">emission on the world climate.</span></span><span style="font-family: NimbusRomNo9L-Regu; font-size: small;"><span style="font-family: NimbusRomNo9L-Regu; font-size: small;">Five </span></span><span style="font-family: NimbusRomNo9L-Regu; font-size: small;"><span style="font-family: NimbusRomNo9L-Regu; font-size: small;">optimal...</span></span>

This paper has two aims. First, it describes CPB's contribution on bilateral services trade data to version 7 of the GTAP database. Among others, it uses reliability indices to determine the quality of the data reported by exporting and importing countries. Second, this paper discusses briefly...

This memorandum presents some basic equalities and inequalities about rates of return in discrete time, without auto-correlation. The arithmetic and geometric means are discussed. Estimation of the expected payout and the median payout is discussed, including maximum likelihood estimation.

This paper discusses a widely used discrete-time analog of dynamic continuous-time models. This analog can not be used for the estimation of models with fast adaption to shocks. This has been overlooked in the econometric literature. In the engineering literature this same analogon is...

With the ongoing liberalization and integration of European energy markets and the increasing worries about security of supply, the need for thorough economic analysis of electricity markets is growing. Elmar is a model for the European electricity market, taking into account imperfect...

This paper is about the discrepancies in reported bilateral statistical data ("mirror data"). For example the trade from country A to country B is not reported the same in the two countries. The discrepancies are used to estimate the accuracy of the reporters. The estimated accuracies are to...

Foreign Direct Investment (FDI) flows have increased substantially in the past two decades. These developments have motivated the appearance of a large number of empirical papers that test the expected benefits that FDI inflows are assumed to bring to the host countries. We survey the recent...

One of the achievements of the of the European Union (EU) is the free movement of goods, services, capital and labour between the member states. The internal market for goods seems to function well, after the implementation of the Single Market programme in 1988. That is however not the case for...

The total pension premium rate consists of two components, the contribution rate and the catching-up premium rate. The contribution rate finances the accrual of pension rights while the catching-up premium finances (possible) wealth deficits of a pension fund. The contribution rate and the...