Empirical Economics (Empir Econ)

Publications in this journal

• Article: Smooth transition trends and labor force participation rates in the United States

  Paraskevi K. Salamaliki, Ioannis A. Venetis
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  ABSTRACT: This paper employs smooth transition trend models to investigate the long-run time series behavior of quarterly US labor force participation rates. In particular, we examine whether long-run growth in labor force participation rates can be modeled by smooth transitions between states rather than as abrupt mean level changes or as a stochastic trend. Smooth transitions permit for non-instantaneous adjustment of individual workers to changes associated with economic events or general labor market conditions. We employ unit root testing procedures with alternatives characterized by stationary fluctuations around one or two smooth transitions in linear trend. We examine labor force participation rates by gender- and age-specific groups. The results indicate that all female and most male participation series are better characterized as stationary processes that undergo transitional deterministics.
  Empirical Economics 02/2013;
• Article: Bank lending channel in India: evidence from state-level analysis

  Vipul Bhatt, N. Kundan Kishor
  Empirical Economics 11/2012;
• Article: The dynamics of entrepreneurship: hysteresis, business cycles and government policy

  Emilio Congregado, Antonio A. Golpe, Simon C. Parker
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  ABSTRACT: This article estimates two unobserved components models to explore the macrodynamics of entrepreneurship in Spain and the USA. We ask whether entrepreneurship exhibits hysteresis, defined as a macrodynamic structure in which the cyclical component of entrepreneurship has persistent effects on the natural rate of entrepreneurship. We find evidence of hysteresis in Spain, but not the USA, while in Spain business cycle output variations significantly affect future rates of entrepreneurship. The article discusses implications of the findings for the design of entrepreneurship policies.
  Empirical Economics 11/2012; 43:1239-1261.
• Article: Assessing Independent Monetary Policy in Small, Open and Euroized Countries: Evidence from Western Balkan

  Velickovski Igor
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  ABSTRACT: This paper approaches to the optimum currency area from the empirical side by investigating the costs of adoption of a single currency for small, open and euroized Western Balkan countries (WBC). Using several econometric techniques this paper attempts to answer three questions relevant for monetary integration of the WBC and similar transition countries: what are the constraints on an independent monetary policy; what is the need for operating an independent monetary policy; and what is the ability to conduct an independent monetary policy. The constraints on independent monetary policy in most of the WBC at this stage are relatively serious due to high levels of openness and euroization. They limit the ability of the central bank, which is oriented to price stability, to use the nominal exchange rate for achieving other goals (for example, output stabilization). Regarding the second question, the results from structural VAR framework suggest a low synchronization for supply and demand shocks between the WBC and the euro area, indicating potentially high costs of losing independent monetary policy. Moreover, the results from Kalman filter technique inform that the shock convergence process is slow or absent in the WBC vis-à-vis the euro area. Regarding the last question, the results from cointegration and VAR analysis suggest that the ability to conduct an independent monetary policy, assessed by analyzing the interest rate channel as the most prominent transmission channel in the euro area, is relatively weak in the WBC.
  Empirical Economics 06/2012;
• Source

  Available from: unirioja.es

  Article: Panel data stochastic convergence analysis of the Mexican regions

  Josep Lluís Carrion-i-Silvestre, Vicente German-Soto
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  ABSTRACT: The stochastic convergence amongst Mexican Federal entities is analyzed in panel data framework. The joint consideration of cross-section dependence and multiple structural breaks is required to ensure that the statistical inference is based on statistics with good statistical properties. Once these features are accounted for, evidence in favour of stochastic convergence is found. Since stochastic convergence is a necessary, but not sufficient, condition for convergence as predicted by economic growth models, the paper also investigates whether β-convergence process has taken place. We found that the Mexican states have followed either heterogeneous convergence patterns or divergence process throughout the analyzed period.
  Empirical Economics 04/2012; 37(2):303-327.
• Article: Looking far in the past: revisiting the growth-returns nexus with non-parametric tests

  Ekaterini Panopoulou, Nikitas Pittis, Sarantis Kalyvitis
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  ABSTRACT: I modify the uniform-price auction rules in allowing the seller to ration bidders. This allows me to provide a strategic foundation for underpricing when the seller has an interest in ownership dispersion. Moreover, many of the so-called "collusive-seeming" equilibria disappear.
  Empirical Economics 01/2010; 38(3):743-766.
• Article: Testing the null of a low dimensional growth model

  Peter Sandholt Jensen
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  ABSTRACT: The primary aim of the paper is to place current methodological discussions in macroeconometric modeling contrasting the ‘theory first’ versus the ‘data first’ perspectives in the context of a broader methodological framework with a view to constructively appraise them. In particular, the paper focuses on Colander’s argument in his paper “Economists, Incentives, Judgement, and the European CVAR Approach to Macroeconometrics” contrasting two different perspectives in Europe and the US that are currently dominating empirical macroeconometric modeling and delves deeper into their methodological/philosophical underpinnings. It is argued that the key to establishing a constructive dialogue between them is provided by a better understanding of the role of data in modern statistical inference, and how that relates to the centuries old issue of the realisticness of economic theories.
  Empirical Economics 01/2010; 38(1):193-215.
• Article: A competing risks analysis of firms’ exit

  Silviano Esteve-Pérez, Amparo Sanchis-Llopis, Juan Sanchis-Llopis
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  ABSTRACT: The economics of recombinant knowledge is a promising field of investigation. New technological systems emerge when strong cores of complementary knowledge consolidate and feed an array of coherent applications and implementations. However, diminishing returns to recombination eventually emerge, and the rates of growth of technological systems gradually decline. Empirical evidence based on analysis of the co-occurrence of technological classes within two or more patent applications, allows the identification and measurement of the dynamics of knowledge recombination. Our analysis focus on patent applications to the European Patent Office, in the period 1981-2003, and provides empirical evidence on the emergence of the new technological system based upon information and communication technologies (ICTs) and their wide scope of applications as the result of a process of knowledge recombination. The empirical investigation confirms that the recombination process has been more effective in countries characterized by higher levels of coherence and specialization of their knowledge space. Countries better able to master the recombinant generation of new technological knowledge have experienced higher rates of increase of national multifactor productivity growth.
  Empirical Economics 01/2010; 38(2):281-304.
• Source

  Available from: mpg.de

  Article: On the distributional properties of household consumption expenditures: the case of Italy

  Giorgio Fagiolo, Lucia Alessi, Matteo Barigozzi, Marco Capasso
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  ABSTRACT: We present a model in which individuals' preferences are defined over their consumption, transfers to offspring, and social status associated with income. We show that a separating equilibrium exists where individuals' expenditure on conspicuous consumption is a signal for their unobserved income. In this equilibrium, poor families that climb up the social ladder by the accumulation of wealth engage in conspicuous consumption that prevents them from escaping poverty. Our model may explain why the poor make some choices that do not appear to help them escape poverty. (JEL: D91, O11, O12, O15) (c) 2010 by the European Economic Association.
  Empirical Economics 01/2010; 38(3):717-741.
• Article: Unemployment durations and the pattern of duration dependence over the business cycle of British males

  Adriaan Kalwij
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  ABSTRACT: Abstract is not available at this time
  Empirical Economics 01/2010; 38(2):429-456.
• Source

  Available from: lu.se

  Article: Panel cointegration and the neutrality of money

  Mauro Costantini, Joakim Westerlund
  Empirical Economics 02/2009; 36(1):1-26.