This paper investigates the cyclical co-movements between US stocks and interest rates by testing a simple model where divergence between stock and bond price behavior is explained by “stock market strength,” where the latter depends on the market climate about future corporate profits—as...

In this paper we analyze a general equilibrium dynamic stochastic New Keynesian model characterized by labor indivisibilities, unemployment and a unionized labor market. The presence of monopoly unions introduces real wage rigidities in the model. We show that as in Blanchard Galì (2005) the so...

By analyzing high frequency data for the European interbank market, we show that the intraday interest rate (implicitly defined by the term structure of the ON rate) jumped by more than ten times at the outset of the financial turmoil in August 2007, resulting in an inefficiency of the money...

In the last 15 years, Italy has been involved in a complex, confuse and unfinished process of fiscal decentralization. In this context, data on fiscal flows are continuously produced and thrown in the political arena by several actors, political parties, interest groups and media alike, with...

The Italian government has succeeded neither in employing nor in disposing of its unused, abandoned and decaying stock of properties over the last twenty years. The legislation on it has been changed continuously even more than once in one year. Policy changed direction yet again this year in...

A model is presented, where firms issuing equity differ in the ability of their controlling shareholders to extract private benefits: this creates a lemon problem, leading to cross-subsidization across issuers. A governance institution is introduced, enabling large shareholders to (imperfectly)...

There is widespread agreement that the two most widely used pricing assumptions in the New-Keynesian literature, i.e., Calvo and Rotemberg price-setting mechanisms, deliver equivalent dynamics. We show that, instead, they entail a very di¤erent dynamics of adjustment after a disin?ation, once...

This paper examines employment transitions among men and women in the UK aged between 50 and the state pension age. We begin by examining the issue of duration dependence, using standard duration models. We then use a fourth order Markov model to estimate quarterly transitions while allowing for...

This paper focuses on factors affecting the internationalization of SMEs. Based on both international businessand and family business literatures, we develop three hypotheses that relate the internationalization of SMEs’ to familymanagement,human capital, and presence of foreign shareholders....

In a duopoly where each firm produces substitute goods, we show that under process innovation, specialization is the equilibrium attained with cross-licensing. Each firm produces only the good for which it has an advantage. Patent pool extension confirms the results.