This paper proposes a novel methodology, based on the Common Principal Component analysis, allowing one to estimate the factors driving the term structure of interest rates, in the presence of time-varying covariance structure.

Many economic and econometric applications require the integration of functions lacking a closed form antiderivative, which is therefore a task that can only be solved by numerical methods. We propose a new family of probability densities that can be used as substitutes and have the property of...

In a simple New Keynesian model, we derive a closed form solution for the inflation-gap persistence parameter as a function of the policy weights in the central bank’s Taylor rule. By estimating the time-varying weights that the FED attaches to inflation and the output gap, we show that the...

Using a modified DCC-MIDAS specification, we endogenize the long-term correlation between crude oil and stock price returns with respect to the stance of the U.S. macroeconomy. We find that variables which contain information on current and future economic activity are helpful predictors for...

Does economic freedom increase the utility of an average citizen? Public choice theory in particular has emphasized the shortcomings of governments and voting processes, and the advantages of relying on markets and individual decision making. However, an increasing amount of people are refusing...

Befristete Arbeitsverträge ermöglichen es Arbeitgebern, die Eignung potentiell neuer Mitarbeiter zu testen. Mit der nachgewiesenen Eigenschaft von befristeten Beschäftigungs-verhältnissen als Karrieretrittbrett ergibt sich so für befristet angestellte Arbeitnehmer ein Anreiz, mehr...

Hochentwickelte Industriestaaten bedürfen permanenter Innovation, um weiterhin wachsen zu können. Nur dadurch ist es möglich, auf dem Weltmarkt Preise zu erzielen, die günstige Terms of Trade und ein hohes Lohnniveau ermöglichen. Die Förderung von Innovation wird damit zu einer zentralen...

Die Integration der Volkswirtschaften führt neben anderen Effekten auch zu einer Zunahme der gehandelten Produktvielfalt. Seit den theoretischen Modellen von Nobelpreisträger Paul Krugmann beschäftigt sich die Handelstheorie mit der Frage, wie stark die Konsumenten von einer Zunahme dieser...

This study questions the rationality of people investing in HFs. I use a sample of London listed closed-end hedge funds to evaluate two criteria that imply irrational behavior. I find that the rationality of investors can not be rejected for the majority of time. However, the results also imply...

This paper takes advantage of a new source of information – the Gallup World Poll 2006 – to estimate and characterize income poverty and inequality in Latin America and the Caribbean (LAC) at the country level, and to compare LAC estimates to those in other regions of the world. The Gallup...