This paper studies the effects of monetary policy in a model with demand shocks driven by shifts in consumer expectations. I ask wether monetary policy can offset these aggregate demand disturbances and wether this offsetting is socially desirable. I consider an environment with dispersed...

Several models have been proposed to study the dynamics of competition between languages. Among them, and starting from the dynamics of endangered languages, recent approaches have addressed the issue of bilingualism. Along these lines we consider the dynamics of language use, allowing for...

In this paper we attempt to provide evidence on the structure of technology in the three industrial branches of French economy, when capital is treated as quasi-fixed input. However instead of choosing a single functional form as an approximation to the variable cost function, modified versions...

The objective of this paper is to determine whether information from equity markets, as summarized in the distance to default measure derived from Merton-MKMV, is useful for modeling and predicting bank credit ratings. We use the BankScope database and Bloomberg to build a data set comprising of...

We provide a computational economics seminar at the University of Mannheim since two years. An introduction to numerics is given in around six sessions where we present the first six technical chapters of Miranda/Fackler: Applied Computational Economics and Finance (linear and nonlinear systems,...

The method of maximum likelihood is used to estimate a Dynamic Stochastic General Equilibrium business cycle model that combines elements of existing sticky-price and limited-participation specifications. Sticky prices are incorporated, following Rotemberg (1982), by assuming that...

The European Environmental Agency (EEA) assigns periodically air pollution emission rights among the EC member states, who, in turn, share their respective endowment among the polluting firms. There exists a moral hazard problem since the EEA does not observe abatement efforts. We propose a...

Option pricing model with non-constant volatility models are compared to stochastic volatility ones. The non-constant volatility models considered are the Dupire's local volatility and Hobson and Rogers path-dependent volatility models. These approaches have the theoretical advantage of...

A regression graph which can be employed to enumerate and evaluate all possible subset regression models is introduced. The graph can be seen as a generalization of a previously introduced regression tree. Specifically, the regression tree describes a non-unique shortest path for traversing the...

We investigate co-movements in inflation dynamics within and across euro area regions and find it important for monetary policy to monitor regional inflation dynamics to enhance the understanding of aggregate inflation. We employ a model where regional inflation dynamics are explained by common...