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116 documents, page 1 of 12

The Effect of Linear Time Trends on Cointegration Testing in Single Equations

This paper surveys the asymptotic distributions of three widely used single equation cointegration tests. Particular attention is paid to the case where the regressors are integrated with drift, i.e. at least one of the regressors follows a linear trend. Even if the regressions are not detrended, the asymptotic critical values are affected by the presence of linear trends in the regressors. Not taking into account this effect leads to tests that are biased towards establishing cointegration t...

Women's Labour Supply after Childbirth: An Empirical Analysis for Switzerland

In this paper, I investigate employment behaviour of women one year after childbirth. Since the study is based on a sample of mothers only, a corrective method for selection into motherhood has been applied. In the empirical work, I use the family sex composition as an instrument for fertility. The primary focus of this study is to investigate the regional differences in the labour supply of women after childbirth. In Switzerland, childcare policy is an area being the responsibility of canton...

Coalition Governments and Policy Reform with Asymmetric Information

With ideological parties being better informed about the state of the world than voters, the true motivation of policy proposals is hard to judge for the electorate. However, if reform proposals have to be agreed upon by coalition parties, it may become possible for the government to signal to the voters its private information about the necessity of reforms. Therefore, in coalition governments reforms will be more in line with policy requirements than in single-party governments. This is usu...

Transatlantic Differences in Labour Markets Changes in Wage and Non-Employment Structures in the 1980s and the 1990s

Rising wage inequality in the U.S. and Britain and rising continental European unemployment have led to a popular view in the economics profession that these two phenomena are related to negative relative demand shocks against the unskilled, combined with flexible wages in the Anglo-Saxon countries, but wage rigidities in continental Europe ('Krugman hypothesis'). This paper tests this hypothesis based on seven large person-level data sets for the 1980s and the 1990s. I use a more sophisticat...

Education, economic growth and measured income inequality

In this paper education simultaneously affects growth and income inequality. More education does not necessarily decrease inequality when the latter is assessed by the Lorenz dominance criterion. Increases in education first increase and then decrease growth as well as income inequality, when measured by the Gini coefficient. There is no clear functional relationship between growth and measured income inequality. The model identifies regimes of this relationship which depend crucially on the ...

Wirtschaftswissenschaftliche Beratung - Fluch oder Segen für die Politik?

Referat im Rahmen der Verabschiedung Herrn Prof. Dr. rer. pol. Günther Poser, gehalten am 14.07.2003 im Georg-Christoph-Lichtenberg Haus, Darmstadt.

Decision Rules and their Influence on Asset Prices

This paper develops a market microstructure model with asymmetric information in order to quantify the influence which practical decision rules have on asset process. The users of practical decision rules have incomplete information at their disposal and trade in a market with both fully informed and uninformed investors, as well as with a competitive market maker. The users of practical decision rules affect the periodical ask and bid prices in two ways: by means of the precision of their in...

“To use the words of Keynes...” Olivier J. Blanchard on Keynes and the 'Liquidity Trap'

In the wake of the financial crisis of 2007-8 academic as well as non-academic interest in the economic thought of John Maynard Keynes was revived. The notion of a 'liquidity trap', interpreted as a zero bound of the (short-term) nominal rate of interest, is seen as one of Keynes's important and lasting contributions to economic theory and to the understanding of the potential problems of monetary policy.2 This view of the alleged connection between Keynes, the 'liquidity trap' and the zero b...

Women, Men and Housework Time Allocation: Theory and Empirical Results

The gender relationship, characterised to a high degree by the gender-specific division of labour into paid work and housework, is in the process of change. In Germany, however, housework continues to be considered a typically female chore. The present study considers the empirical relevance of three theoretical approaches to gender-specific time allocation from the economic and social sciences. The various models are assessed using the Socioeconomic Panel (SOEP) for the year 2000. The estima...

Growth Over the Very Long-Run: Implications of a Specific Factors Model of Economic Development With Endogenous Technological Change

We use the two-sector specific factors model, which is known from the theory of international trade, in a growth context to describe major trends of long-run economic development. The endogenous technical progress functions establish the link between the agricultural and the manufacturing sector through the ratio of agricultural to total employment, which is determined by the savings propensities of wage-earners, landlords and capitalists, and by the investment ratio in manufacturing. Without...