This paper derives a new criterion for the determination of the number of factors in static approximate factor models, that is strongly associated with the scree test. Our criterion looks for the number of eigenvalues for which the difference between adjacent eigenvalue-component number blocks...

In managing networks of stock holding locations, two approaches to the pooling of inventory have been proposed. Reactive transshipm nts respond to stockouts at a location by moving inventory from elsewhere within the network, while proactive redistribution of stock seeks to minimise the chance...

Why have women surpassed men in terms of educational attainment, even though they appear to have less incentives to go to college? The aim of this paper is to set up a basic theoretical life-cycle model in order to study the potential role of gender differences in the benefit of education in...

We use real-time annual data on the fiscal balance, government current spending, current revenues and net capital outlays as published at a half yearly frequency in the OECD Economic Outlook for 25 OECD countries. For each fiscal year t we have a number of forecasts, a first release, and...

We present an experiment on yardstick competition. Experimental firms set cost levels in each period and can communicate with each other in an attempt to increase the regulated price. We find that when market shares are heterogeneous, collusion is least frequent and prices are lowest. The number...

This paper analyses the impact of the Global Financial Crisis on the Euro area utilizing a simple dynamic macroeconomic model with interaction between monetary policy and fiscal policy. The model consists of an IS curve, a Phillips curve, a term structure relation, a debt accumulation equation...