We generalize and extend the second order stochastic dominance condition available for Expected Utility to Cumulative Prospect Theory. The new definitions include, among others, preferences represented by S-shaped value and inverse S-shaped probability weighting functions. The stochastic...

In this working paper the trade impact of the European integration process in assessed. To that end, two different but complementary techniques are used: the gravity equation model and time series analysis. Four main conclusions are deduced. First, the existenceof a EEC effect is clearly...

This working paper combines the Parameterizing Expectations Approach developed by Marcet (1988) and Den Haan and Marcet (1990), and the approach proposed by Krusell and Smith (1998), to approximate the equilibrium of incomplete markets economies with aggregate uncertainty. The algorithm is...

The life table constitutes a fundamental model of demography.This work compiles all the official information published in Spain by the National Statistical Institute (INE) in relation to life tables at a national level. The information has been organized in Excel® and PcAxis® files, to...

The aim of this article is to develop new international financial integration indicators together with their determinants: financial openness and regularity (balance) of bilateral financial flows. The study s contribution is based on the definition of the Standard of Perfect Financial...

This working paper studies the convergence process in financial markets and its relation with the business cycle in 15 economies of the European Union. We use unobserved component models and a regression model. The regression model defines convergence as the discrepancy between two variables...

The processes of vertical and horizontal separation within the railway sector are relatively recent in many European countries, and, as a result, little analytical research has been carried out on their impact. The purpose of this working paper is to analyze the effects of these organizational...

The purpose of this working paper is to analyse the main causes of economic growth in Argentina during the 1990-2004 period. This research proposes a methodology in order to identify Total Factor Productivity(TFP) gains in the strict sense of positive shifts in the production function,...

This working paper analyzes the endogenous creation of financial intermediaries. We construct an occupational choice model where agents differ amongst themselves in their accumulated assets and skill level. Every period these agents have to choose among three occupations: a worker, an...

We provide a theoretical model which helps to explain the specific role of TTOs. Using a framework where firms have incomplete information on the quality of inventions, we develop a reputation argument for the TTO to reduce the asymmetric information problem. Our results indicate that a TTO is...