In this paper, we reexamine and extend the stochastic volatility model of Stein and Stein (1991) where volatility follows a mean-reversion Ornstein-Uhlenbeck process. Using Fourier inversion techniques we are able to allow for correlation between instan-taneous volatilities and the underlying...

In this paper it is illustrated how option-based valuation can be used to determine whether and when a firm should patent and adopt an Innovation if the arrival time of competitors is stochastic. Four distinct strategies are derived: Apply for a patent without introducing the new technology...

We investigate the consequences of redistribution policy on migration and trade in a Standard two-good Heckscher-Ohlin framework. With free trade and factor price equalization, abolishing migration barriers is redundant. With the introduction of government activity, matters change drastically....

This paper has provided an introduction to a multi-country model applied to the European Union which can be used to tackle fiscal policies questions in a static framework. We provide in addition a code written in GAMS, which accomodates the model specification in a concise and transparent...

We develop a growth model with endogenous technological progress in which the financial sector plays an explicit role. Thereby we discuss the role of different financial regimes in the growth process. We contrast a bank-dominated financial system with a market-dominated system. In the first one...

Indicators based on spillover coefficients contribute to the characterization of reciprocal externality fields. Such indicators can describe both quantity and structure aspects of diffiision schemes. In this paper the significance of spillover coefficients and corresponding indicators for...

Im vorliegenden Aufsatz wird untersucht, ob die Volkswirtschaftslehre einen Beitrag zur theoretischen Fundierung einer vorausschauend lenkenden Strukturpolitik leisten kann. Zu diesem Zweck werden vier ausgewählte Theorien auf ihre Eignung als Basis einer vorausschauend lenkenden...

This paper discusses the macroeconomic adjustment and the intergenerational and international incidence of a switch from the current destination-based value-added taxation to a origin-based VAT within a dynamic general equilibrium framework. Such a reform will affect the welfare levels of...