In this paper we demonstrate that there is evidence of an unstable and nonlinear relationship between fundamentals and exchange rates. Modeling this time-varying nature of the importance of fundamentals in a Markov switching framework substantially improves the fit of the real interest rate...

One of the fundamental problems of the positive theory of income taxation is explaining why the statutory income tax schedules in all industrialized democracies are marginal-rate progressive. While it is commonly believed that this is but a simple consequence of the fact that the number of...

Das vorliegende Arbeitspapier möchte einen Beitrag leisten, das Investitions- und Finanzierungsverhalten multinationaler Unternehmen auszuleuchten. Hierzu werden auf der Grundlage der Surveys of Current Business, die vom Bureau of Economic Analysis (BEA) erhoben werden, sowie anhand von...

Most econometric analyses of patent data rely on regression methods using a parametric form of the predictor for modeling the dependence of the response given certain covariates. These methods often lack the capability of identifying non-linear relationships between dependent and independent...

This paper proposes a method for detecting income classes based on the change-point problem. There is an increasing demand for such a method in the literature. Computation of polarization indices requires a pre-grouping of the incomes. Similarly, indices of social exclusion and sometimes indices...

In this paper, we analyse the recent patterns of occupational segregation by gender in the EU countries vis-?-vis the US. Given the lack of long time-series data on homogeneous LFS data about occupations and educational attainments for male and female workers in EU countries, we use a single...

This paper presents a global model linking individual country vector error-correcting models in which the domestic variables are related to the country-specific variables as an approximate solution to a global common factor model. This global VAR is estimated for 26 countries, the euro area...

We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and balanced budget rules cause a complementarity between capital and employment capable of explaining the existence of multiple equilibrium paths. Hysteresis is viewed as the result...

When I wrote my book on EMU four years ago (Kenen 1995), very little had been written on the international dimensions of EMU There was a chapter in the Commission's path-breaking study (European Commission, 1990). There were papers by Alogoskoufis and Portes (1991, 1992), Cooper (1992), Goodhart...

On January 1,1999 euro became the currency for 11 member states of the European Union. Since then the dollar-euro exchange rate has completed a full turning. Three years of depreciation of the euro followed by three years of appreciation without wild fluctuations asks for an explanation which...