In a standard framework of international monetary policy games we show that countries will prefer to split up into several coalition blocs of a smaller size rather than forming one big coalition. Depending on the strategic position between the coalitions in an equilibrium there will be either...

A correction factor, depending on sample size and parameters, is found for the likelihood ratio test for some linear hypotheses on the cointegrating space in a vector autoregressive model, where the adjustment coefficients are known. The main idea is to condition on the common trends when making...

The ECB formulates its policy relying on two-pillars: the monetary pillar and alternative models of inflation. The two-pillars strategy has been seriously criticized and there is a chance that it will be reconsidered at some point in the future. This paper elaborates on this possibility,...

The paper investigates the robustness of different efficiency measures that can support the implementation of diverse forms of incentive regulation in the context of U.S. telecommunications. Comparisons, in terms of an output orientation, are considered for efficiency scores obtained from Data...

In a two-sided search model, where the matching function is characterized by ex post match-specific heterogeneity and variable search intensity, the relative performance of search and hiring subsidies in terms of both cost effectiveness and aggregate efficiency is assessed.

This paper contains a model of waste elimination through design. It argues for the importance of managing design complexity in improving cost, quality, variety, and time-to-market performance varaibles. Management of design complexity is identified with creation, choice, and application of...

This paper considers a sticky price model with a cash-in-advance constraint where agents forecast inflation rates by fitting econometric models to data. Agents are uncertain about which model to fit and can choose from a class of models. Only some of the models in this class are consistent with...

Time-inconsistency can arise when a government attempts to convince private sector to use a particular alternative energy (gas, green electricity...) rather than petroleum products. By introducing taxes and feed-in prices, a government would encourage firms and households to switch to an...

The paper proposes a model to study the conditions under which complex networks emerge (or not) when agents are involved in a dynamic coordination setup. The focus, however, is not on the classical issue of equilibrium selection - instead, our aim is to shed light on how agents' efforts to...