In this paper we consider price regulation in oligopolistic markets when firms are quantity setters. We consider a market for a homogeneous good with a special form of the demand function (?-linearity), constant returns to scale and identical firms. Marginal costs can take two values only: low...

In moments of financial distress downside risk measures like lower partial moments are more appropriate than the standard variance to characterize risk. The goal of this paper is to study how to choose optimal portfolios in these periods. In order to do this we extend the definition of lower...

This paper presents new evidence on the effects of class attendance on academic performance. We analyse survey data collected for an Introductory Econometrics Course at the Facultad de Ciencias Sociales y Jurídicas of Universidad Carlos III de Madrid, matched to administrative data. Using...

This paper is concerned with evaluating value at risk estimates. It is well known that using only binary variables, such as whether or not there was an exception, sacrifices too much information. However, most of the specification tests (also called backtests) available in the literature, such...

The literature has identified three main approaches to account for the way exchange rate regimes are chosen: i) the optimal currency area theory; ii) the financial view, which highlights the consequences of international financial integration; and iii) the political view, which stresses the use...

This paper exploits a unique 2003-2011 large dataset, indexed by Thomson & Reuters, consisting of 17.2 million disambiguated authors classified into 30 broad scientific fields, as well as the 48.2 million articles resulting from a multiplying strategy in which any article co-authored by two or...

This paper assesses the optimality of U.S. fiscal policy from 1960 to 2010. With this purpose, we present a tractable neoclassical economy with a benevolent government and characterize time-consistent, optimal fiscal policy. We then compare the model's prescriptions for income tax rates and...

Since Littlechild (1983)'s report, price cap regulation has been regarded as an effective instrument to mitigate market power when precise information about cost and demand is available. Earle, Schmedders and Tatur (2007) establishes that the comparative static properties of price caps that hold...

This paper studies the impact of financial constraints on the persistency of high markups in a class of markets, including most of public procurement, known by practitioners as bidding markets. We develop an infinite horizon model in which two firms optimally reinvest working capital and bid for...