This paper examines how much the central bank should adjust the interest rate in response to real exchange rate fluctuations. The paper first demonstrates in a two-country Dynamic Stochastic General Equilibrium (DSGE) model, that the home bias in consumption is important to duplicate the...

Countries worldwide confront the challenge of defining and achieving appropriate roles for government and market forces in the health sector. China--as both a developing and a transitional economy--represents an important case. This paper uses an international comparative perspective to examine...

In this paper we estimate the rate of exchange rate pass-through (ERPT) into UK import prices using disaggregate data at the SITC-2 and SITC-3 digit level. Consistent with earlier studies, we find evidence for significant heterogeneity among the estimated industry-specific pass-through rates. In...

Traffic flow directionality and network weight asymmetry are widespread notions in traffic networks. This paper investigates the influence of direction-dependant heterogeneity on traffic congestion. To capture the effect of the link directionality and link weight asymmetry, the heterogeneity...

Avalanche or cascade failure is ubiquitous. We first classify the cascading phenomena into two categories: the cascading disasters which result in large-scale functional failures and the cascading events that do not lead to disasters. We elucidate that two important factors, the increasing...

The collective dynamics of large-scale computer networks remains elusive due to not only the internal adaptive behaviors of network-wide flows, but also the spatial–temporal changes in the external environment. In this paper, we investigate the time-dependent collective behavior by using a...

We document in the US data: (1) The dominant predictable component of investment-sector TFP is its long-run movements, and a favorable shock to predictable changes in investmentsector TFP induces a broad economic boom that leads actual increases in investment-sector TFP by almost two years, and...

The oscillatory characteristics of magnetoconductance for a junction composed of a superconductor and a semiconductor, in which two parallel quantum wave guides are coupled with each other through a potential barrier layer, are studied systematically. To model the imperfectness of the interface,...