This study looks at real estate price booms and busts in industrialised countries. Itidentifies major and persistent deviations from long term trends for 18 countries andestimates the probabilities of their occurrence using a Random Effects Panel Probitmodel over the period 1980-2007. It finds...

This paper reviews recent approaches to modeling the labour market and assessestheir implications for in‡ation dynamics through both their e¤ect on marginalcost and on price-setting behaviour. In a search and matching environment, weconsider the following modeling setups: right-to-manage...

In this paper we present an extension of the Taylor model with staggered wages inwhich wage-setting is also influenced by reference norms (i.e. by benchmark wages).We show that reference norms can considerably increase the persistence of inflationand the extent of real wage rigidity but that...

We analyze the asset allocation decisions of different investor groups and investigate how their investmentbehavior changes with macroeconomic conditions. Using a new data set that includes themonthly portfolio holdings of private, commercial, and institutional investors deposited with...

We derive an R&D-based semi-endogenous growth model where technological progressdepends on the available amount of technological opportunity. Incremental innovationsprovide direct increases in the knowledge stock but they reduce technological opportunityand thus the potential for further...

We reexamine the issue of executive compensation within a gen-eral equilibrium production context. Intertemporal optimality placesstrong restrictions on the form of a representative manager's compen-sation contract, restrictions that appear to be incompatible with thefact that the bulk of many...

This paper examines numerically the impact of a negative exogenousshock to marginal productivity (such as ecological government regulationthat becomes eective at some point in time) in an endogenousnite time growth model with sluggish reallocation of human capital.The policy can be anticipated...

This paper investigates whether the inherent non-stationarity of macroeconomic time series is entirely due to a random walk or also to non-linear components. Applying the numerical tools of the analysis of dynamical systems to long time series for the US, we reject the hypothesis that these...

A simple asset pricing model with two types of adaptively learning traders, fundamentalists and technical analysts, is studied. Fractions of these trader types, which are both boundedly rational, change over time according to evolutionary learning, with technical analysts conditioning their...

This paper estimates a trivariate two-factor conditional version of the Intertemporal CAPM of Merton (1973).