This paper examines monetary policy in a currency union whose member countries exhibitheterogeneous rates of limited asset markets participation (LAMP). As a result risksharing among member countries is imperfect and the monetary transmission mechanismcan dier across countries. In the limit the...

We present a gravity model that accounts for multilateral resistance, firm heterogeneity and country-selectioninto trade, while accommodating asymmetries in trade flows. A new equation for the proportion of exporting…firms takes a gravity form: the extensive margin is also accected by...

Do better trade logistics reduce trade costs, raising a country´s exports? Yes, but the magnitude of the effectdepends on country size. Applying a new gravity model to a comprehensive logistics index, we …nd that anaverage-sized country would raise exports by about 46% after a one-standard...

This paper considers the problem of determining the extent of any state dependen-cies in women's labor supply behavior. Employment outcomes are modeled using adynamic multinomial choice framework including persistent unobserved heterogeneitywith a relatively general distribution. In order to...

All empirical models of earnings processes in the literature assume agood deal of homogeneity. In contrast to this we model earnings processesallowing for lots of heterogeneity between agents. We also introduce an ex-tension to the linear ARMA model that allows that the initial convergenceto the...

Portfolio choice and the implied asset pricing are usually derived assumingmaximization of expected utility. In this Paper, they are derived from risk-value models that generalize the Markowitz-model. We use a behaviourally-based risk measure with an endogenous or exogenous benchmark...

This paper attempts to establish the trend of market development in Europe in thecenturies before the industrial revolution, by applying three different measures ofmarket integration to a compilation of monthly and annual price data. In contrast tomuch of the existing work, which suggests that...

The existence of a self-regulating arbitrage mechanism under the gold standard has been tradi-tionally considered as one of its main advantages, and attracted a corresponding research interest.This research is arguably relevant not only to test for the effciency of the gold points, but also...

Characteristics models have been found to be useful in many areas of economics. However,their empirical implementation tends to rely heavily on functional form assumptions. Inthis paper we develop a revealed preference approach to characteristics models. We derivethe necessary and sufficient...