Dynamic stochastic general equilibrium models featuring imperfect competition and nominal rigidities have become central for the analysis of the monetary transmission mechanism and for understanding the conduct of monetary policy. However, it is agreed that the benchmark model fails to generate...

In this editorial we summarise and comment on papers published in issue 8.4. The first paper is by Frederick Guy, entitled 'Small, Local and Cheap? Walkable and Car-oriented Retail in Competition'. Secondly we have the paper by Nicola Francesco Dotti, Ugo Fratesi, Camilla Lenzi & Marco Percoco...

In multilevel modelling, interest in modeling the nested structure of hierarchical data has been accompanied by increasing attention to different forms of spatial interactions across different levels of the hierarchy. Neglecting such interactions is likely to create problems of inference, which...

Spatial econometrics has been criticized by some economists because some model specifications have been driven by data-analytic considerations rather than having a firm foundation in economic theory. In particular this applies to the so-called W matrix, which is integral to the structure of...

In this editorial, we summarize and comment on the papers published in Issue 9.3. The first paper is entitled 'The Magnitude and Distance Decay of Trade in Goods and Services: New Evidence for European Countries', by Martin J. Burger, Mark J. P. M. Thissen, Frank G. Van Oort and Dario Diodato....

In this editorial we summarise and comment on papers published in issue 9.1. The first paper is by Raffaele Paci, Emanuela Marrocu and Stefano Usai 'The Complementary Effects of Proximity Dimensions on Knowledge Spillovers'. Second, we have the paper by Karyn Morrissey, Cathal O'Donoghue and...

Spatial econometrics has been criticized by some economists because some model specifications have been driven by data-analytic considerations rather than having a firm foundation in economic theory. In particular, this applies to the so-called W matrix, which is integral to the structure of...

We re-connect money to in.ation using Goodfriend and McCallum's (2007) model where banks supply loans to cash-in-advance constrained consumers on the basis of the value of collateral provided and the monitoring skills of banks. We show that when shocks to monitoring and collateral dominate those...

Optimal nominal interest rates rule are usually set assuming that the underlying world is linear. Our work relaxes this assumption and examines the performance of optimal rules when non-linearities are present. In particular if the inflation-output trade off exhibits non linearities...

Recent empirical research by Mark Taylor and coauthors has found evidence of hybrid dynamics for real exchange rates. While there is a random walk near equilibrium, for real exchange rates some distance from equilibrium there is mean-reversion which increases with the degree of misalignment. An...