shocks and uncertainty about the central banker's and the medianvoter's inflation target. A contract which is based on self …-imposed monetary target announcements proves to be superior to the best monetary rule if conflicts about the inflation target within …-imposed targets depends on the type of conflict within society, whether the individuals disagree on the weight of the inflation versus …

&D capital are also unobserved, resulting in a formidable estimation problem. In the past econometric estimates of the … depreciation rates of physical and R&D capital were typically obtained from self-programmed estimation algorithms. In this note we … introduce an approach that permits the econometric estimation of constant and variable rates of depreciation of physical and R …