We examine the global dimension of inflation in 24 OECD countries between 1980 and 2007in a traditional Phillips curve framework. We decompose output gaps and changes in unitlabor costs into common (or global) and idiosyncratic components using a factor analysis andintroduce these components...

This paper investigates the role of corporate taxation with respect to a multinational'sinvestment decision, in which the multinational can pursue either a direct or an indirectinvestment strategy. The latter involves at least three corporate entities and opens upenhanced opportunities for...

Macroeconomic risk assessments play an important role in the forecasts of manyinstitutions. However, to the best of our knowledge their performance has notbeen investigated yet. In this work, we study the Bank of England’s risk forecastsfor inflation. We find that these forecasts do not...

Aggregated output in industrialized countries has become less volatile over the pastdecades. Whether this “Great Moderation” can be found in firm level data as wellremains disputed. We study the evolution of firm level output volatility using abalanced panel dataset on German firms that...

We disentangle different driving factors of sovereign bond market integrationby studying yield co-movements of EMU countries, the UK, the US and 16German L¨ander in the last 15 years. At a low frequency of weeks, bondmarket integration has increased gradually in the course of the last 15 years...

Following a positive shock, financing constraints will prolong or impede economic expansionthat would have been optimal in an unconstrained environment. The study ofdynamic adjustment therefore offers a direct way of verifying the presence of financingconstraints and assessing their consequences...

While some of the recent surge of oil prices can be attributed to robust global demandat a time of tight production capacities, commentators occasionally also blame theimpact of speculators for part of the price pressure. We propose an empirical oil market model with heterogeneous speculators....

Understanding adjustment processes has become central in economics. Empirical analysisis fraught with the problem that the target is usually unobserved. This paper develops,simulates and applies GMM methods for estimating dynamic adjustment models ina panel data context with partially unobserved...

Busniess cycle models with sticky prices and endegenous firm entry make novel predictions on the transmission of shocks through the extensive margin of investment. This paper tests some of these predictions using a vector autoregression with model-based sign restrictions. [...]

How does international financial integration a