type="main" xml:id="rssb12036-abs-0001" <title type="main">Summary</title> <p>Functional additive models provide a flexible yet simple framework for regressions involving functional predictors. The utilization of a data-driven basis in an additive rather than linear structure naturally extends the classical functional linear...</p>

This paper studies the implication of unit root supply shocks for the Taylor rule. I find that, when supply shocks have a unit root, if a central bank wishes to guarantee the stationarity of inflation, then their interest rate reaction function should not respond to the output gap. Once the...

We propose an iterative estimation procedure for performing functional principal component analysis. The procedure aims at functional or longitudinal data where the repeated measurements from the same subject are correlated. An increasingly popular smoothing approach, penalized spline...

The estimation of a regression function by kernel method for longitudinal or functional data is considered. In the context of longitudinal data analysis, a random function typically represents a subject that is often observed at a small number of time points, while in the studies of functional...

This paper investigates the transmission of monetary policy in the euro area based onthe factor augmented vector autoregressive approach of Bernanke, Boivin and Eliasz(2005) as well as on a standard VAR model. We focus on the reaction of monetaryaggregates to a one-off monetary policy shock. We...

Using a unique German firm-level data set, this paper is the first to jointlystudy the cyclical properties of the cross-sections of firm-level real value addedand Solow residual innovations, as well as capital and employment adjustment.We find two new business cycle facts: 1) The cross-sectional...

The aim of this paper is to analyse the effects of knowledge management on theinnovation success of firms in Germany. Using a matching procedure on data from theGerman Innovation Survey of 2003 (“Mannheim Innovation Panel”), we pair firmsapplying knowledge management with twin firms with...

Is time-varying firm-level uncertainty a major cause or amplifier of the businesscycle? This paper investigates this question in the context of a heterogeneousfirmRBC model with persistent firm-level productivity shocks and lumpy capitaladjustment, where cyclical changes in uncertainty...

Though unambiguously outperforming all other ¯nancial markets in terms of liquidity,foreign exchange trading is still performed in opaque and decentralized markets. In par-ticular, the two-tier market structure consisting of a customer segment and an interdealersegment to which only market...

During the turbulent 1970s and 1980s the Bundesbank established an outstandingreputation in the world of central banking. Germany achieved a high degree of domesticstability and provided safe haven for investors in times of turmoil in the internationalfinancial system. Eventually the Bundesbank...