This paper elaborates on the alternative measure of persistence recently suggested in Marques (2004), which is based on the idea of mean reversion. A formal distinction between the “unconditional probability of a given process not crossing its mean in period t” and its estimator, is made...

This paper discusses the use of the trimmed mean as a core inflation indicator when the price changes distribution is fat tailed and asymmetric and computes several asymmetric trimmed means that meet all the conditions suggested in Marques et al. (2000). It turns out that the 10 per cent trimmed...

Using data from the Portuguese quarterly employment surveys, 1992-96, the present chapter examines the effect of unemployment insurance (UI) on escape rates from unemployment. The first concern is to identify the manner in which UI influences the time profile of these broad transitions. To this...

This paper argues that the flexible price paradigm is superior to the sticky price paradigm in the context of general equilibrium models. Based on a quarterly data set for six G7 economies, the paper presents two types of evidence showing that prices respond significantly to their underlying...

Pricing discrepancies in the Iberian stock market are assessed. The estimation results suggest three conclusions. When considered individually each of the three stock markets considered, Frankfurt, Lisbon and Madrid Stock Exchanges, constitutes an almost perfectly integrated market. Even though...

Using a longitudinal matched employer-employee data set for Portugal over the 1986-2005 period, this study analyzes the heterogeneity in wages responses to aggregate labor market conditions for newly hired workers and existing workers. Accounting for both worker and firm heterogeneity, the data...

In this paper we analyse the ability of time and state dependent price setting rules to explain durations of price spells or the probability of changing prices.Our results suggest that simple time dependent models cannot be seen as providing a reasonable approximation to the data and that state...

This paper addresses some issues concerning the definition and measurement of inflation persistence in the context of the univariate approach. First, it is stressed that any estimate of persistence should be seen as conditional on the given assumption for the long run level of inflation and that...

With few exceptions, most economic data undergo revisions. Although frequently neglected, data revisions may have implications, not only for economic analysis, but also for policy decisions, as revisions may alter current assessment and forecasts of economic developments. In this paper, we...

The monitoring of economic developments is an exercise of considerable importance forpolicy makers, namely, central banks and fiscal authorities as well as for other economic agents such as financial intermediaries, firms and households. However, the assessment of the business cycle is not an...