This paper analyzes whether the excessive overreliance on non-interest income and wholesale funding, which occurred in the banking industry during the last two decades and led to increases in systemic risk, could arise from the desire of bank managers to increase their variable compensation....

In this article I investigate whether the presence of structural breaks affects inference on the order of integration in univariate time series. For this purpose, we make use of a version of the tests of Robinson (1994) which allows us to test unit and fractional roots in the presence of...

This paper presents a method to make measurable what was not: the discourses of politicians regarding decentralization. For this purpose, we develop a “matrix of arguments” and a set of indexes, and apply them to provide a snapshot of the politicians’ views on the “General Law of...

We investigate the determinants of renewable energy R&D intensity and the impact of renewable energy innovations on firm performance, using several dynamic panel data models. We estimate these models using a large dataset of European firms of 19 different countries, with some patenting activity...

This paper derives a recursive method and the corresponding forward solution for linear Rational Expectations (RE) models in the class of fundamental solutions. Our recursive method is a generalization of the traditional forward method of recursive substitution when predetermined variables are...

The aim of this paper is to analyse the empirical fulfilment of the Purchasing Power Parity (PPP) theory for the Australian dollar. In order to do so we have applied recently developed unit root tests that account for asymmetric adjustment towards the equilibrium (Kapetanios et al., 2003) and...

Trade liberalization in environmental goods is high on the agenda of the current Doha round. We examine its effects in a model with one domestic downstream polluting firm and two upstream firms (one domestic, one foreign). The domestic government sets the emission tax rate after the outcome of...

There exists extensive evidence that people learn positively about themselves. We build on this finding to develop a model of team formation in the workplace. We show that learning positively about oneself systematically undermines the formation of teams. Agents becoming overconfident tend to...

Improvements in anticorruption have mostly stagnated. We suggest a methodological failure as the main cause: the analysis of corruption as a complex phenomenon has been neglected. We draw on the available literature on corruption to show its complex and systemic character, which includes...

We use peer assessments as a tool to allocate joint profits in a real effort team experiment. We find that using this incentive mechanism reduces team performance. More specifically, we show that teams composed of fellows rather than strangers actually underperform in a context of peer...