The Conservativeness of the Central Bank when Institutional Quality is Poor

We propose an extension of Alesina and Tabellini 's model (1987) to include corruption, which is understood as the presence of weak institutions collecting revenue through formal tax channels. This paper analyses how conservative should an independent central bank be when the institutional quality is poor. When there are no political distortions, we show that the central bank has to be more conservative than the government, except with complete corruption. In this particular case, the central bank should be as conservative as the government. Further, we obtain that the relationship between the optimal relative degree of conservativeness of the central bank and the degree of corruption is affected by supply shocks. Concretely, when these shocks are not important, the central bank should be less conservative if the degree of corruption increases. However, this result may not hold when the shocks are relevant. JEL classi fication: D6, D73, E52, E58, E62, E63. Keywords: Central Bank Conservativeness; Corruption; Fiscal Policy; Monetary Policy; Seigniorage.

Firms, destinations, and aggregate fluctuations

This paper uses a database covering the universe of French firms for the period 1990-2007 to provide a forensic account of the role of individual firms in generating aggregatefluctuations. We set up a simple multi-sector model of heterogeneous firms selling tomultiple markets to motivate a theoretically-founded decomposition of firms' annualsales growth rate into different components. We find that the firm-specific componentcontributes substantially to aggregate sales volatility, mattering about as much as thecomponents capturing shocks that are common across firms within a sector or country.We then decompose the firm-specific component to provide evidence on two mechanismsthat generate aggregate fluctuations from microeconomic shocks highlighted in the recentliterature: (i) when the firm size distribution is fat-tailed, idiosyncratic shocks tolarge firms directly contribute to aggregate fluctuations; and (ii) aggregate fluctuationscan arise from idiosyncratic shocks due to input-output linkages across the economy.Firm linkages are approximately three times as important as the direct effect of firmshocks in driving aggregate fluctuations.

On the inefficiency of the restricted maximum likelihood

The restricted maximum likelihood is preferred by many to the full maximumlikelihood for estimation with variance component and other randomcoefficientmodels, because the variance estimator is unbiased. It is shown that thisunbiasednessis accompanied in some balanced designs by an inflation of the meansquared error.An estimator of the cluster-level variance that is uniformly moreefficient than the fullmaximum likelihood is derived. Estimators of the variance ratio are alsostudied.

From Full stopping to transparency in a holographic model of heavy ion collisions

We numerically simulate planar shock wave collisions in anti-de Sitter space as a model for heavy ion collisions of large nuclei. We uncover a crossover between two different dynamical regimes as a function of the collision energy. At low energies the shocks first stop and then explode in a manner approximately described by hydrodynamics, in close similarity with the Landau model. At high energies the receding fragments move outwards at the speed of light, with a region of negative energy density and negative longitudinal pressure trailing behind them. The rapidity distribution of the energy density at late times around midrapidity is not approximately boost invariant but Gaussian, albeit with a width that increases with the collision energy.

Responses to a crisis: FASA-Renault in Spain during the 1970s

[cat] Aquest treball analitza la trajectòria de l’empresa FASA-Renault durant la dècada dels setanta del segle XX. Aquest període compren els primers anys de la crisis experimentada per l’economia i la industria espanyola entre 1974 y 1985. A nivell extern, l’economia espanyola es va veure afectada per dos xocs en el preu del petroli. A nivell intern, la industria de l’automòbil es va veure afectat per un decret governamental: es tractava de l’anomenat decret “Ford”, aprovat l’any 1972, el qual facilitava l’establiment de Ford a Espanya. Aquest decret va tenir greus conseqüències per a SEAT, el principal productor espanyol. Entre 1972 y 1980 la producció de SEAT es va reduir en una tercera part i la seva situació financera va esdevenir insostenible. Per contra, en aquest període FASA-Renault va esdevenir el principal productor ubicat a Espanya (la seva producció es va multiplicar per 3,5 durant els anys setanta) i en líder de ventes en el mercat espanyol (la seva penetració es va incrementar del 23 al 36%). El principal objectiu del treball es analitzar els factor que expliquen l’èxit de FASARenault durant els anys setanta.

How Do Aggregate Fluctuations Depend on the Network Structure of the Economy?

[spa] En este artículo, analizamos la volatilidad agregada de una economía estilizada donde los agentes estann conectados en redes. Si hay relaciones estratégicas entre las acciones de los agentes, choques idiosincráticos pueden generar fluctuaciones agregadas. Demonstramos que la volatilidad agregada depende de la estructura de redes de la economía de dos maneras. Por un lado, si hay más conexiones en la economía en su conjunto, la volatilidad agregada es más baja. Por otro lado, si las conexiones están más concentradas, la volatilidad agregada es más alta. Presentamos una aplicación de nuestras predicciones teóricas que utiliza datos de EEUU de conexiones intrasectoriales y de diversificación de las empresas.

Responses to a crisis: FASA-Renault in Spain during the 1970s

[cat] Aquest treball analitza la trajectòria de l’empresa FASA-Renault durant la dècada dels setanta del segle XX. Aquest període compren els primers anys de la crisis experimentada per l’economia i la industria espanyola entre 1974 y 1985. A nivell extern, l’economia espanyola es va veure afectada per dos xocs en el preu del petroli. A nivell intern, la industria de l’automòbil es va veure afectat per un decret governamental: es tractava de l’anomenat decret “Ford”, aprovat l’any 1972, el qual facilitava l’establiment de Ford a Espanya. Aquest decret va tenir greus conseqüències per a SEAT, el principal productor espanyol. Entre 1972 y 1980 la producció de SEAT es va reduir en una tercera part i la seva situació financera va esdevenir insostenible. Per contra, en aquest període FASA-Renault va esdevenir el principal productor ubicat a Espanya (la seva producció es va multiplicar per 3,5 durant els anys setanta) i en líder de ventes en el mercat espanyol (la seva penetració es va incrementar del 23 al 36%). El principal objectiu del treball es analitzar els factor que expliquen l’èxit de FASARenault durant els anys setanta.

How Do Aggregate Fluctuations Depend on the Network Structure of the Economy?

[spa] En este artículo, analizamos la volatilidad agregada de una economía estilizada donde los agentes estann conectados en redes. Si hay relaciones estratégicas entre las acciones de los agentes, choques idiosincráticos pueden generar fluctuaciones agregadas. Demonstramos que la volatilidad agregada depende de la estructura de redes de la economía de dos maneras. Por un lado, si hay más conexiones en la economía en su conjunto, la volatilidad agregada es más baja. Por otro lado, si las conexiones están más concentradas, la volatilidad agregada es más alta. Presentamos una aplicación de nuestras predicciones teóricas que utiliza datos de EEUU de conexiones intrasectoriales y de diversificación de las empresas.

Current Sheet Regulation of Solar Near-relativistic Electron Injection Histories

We present a sample of three large near-relativistic (>50 keV) electron events observed in 2001 by both the ACE and the Ulysses spacecraft, when Ulysses was at high-northern latitudes (>60◦) and close to 2 AU. Despite the large latitudinal distance between the two spacecraft, electrons injected near the Sun reached both heliospheric locations. All three events were associated with large solar flares, strong decametric type II radio bursts and accompanied by wide (>212◦) and fast (>1400 km s−1) coronal mass ejections (CMEs). We use advanced interplanetary transport simulations and make use of the directional intensities observed in situ by the spacecraft to infer the electron injection profile close to the Sun and the interplanetary transport conditions at both low and high latitudes. For the three selected events, we find similar interplanetary transport conditions at different heliolatitudes for a given event, with values of the mean free path ranging from 0.04 AU to 0.27 AU. We find differences in the injection profiles inferred for each spacecraft. We investigate the role that sector boundaries of the heliospheric current sheet (HCS) have on determining the characteristics of the electron injection profiles. Extended injection profiles, associated with coronal shocks, are found if the magnetic footpoints of the spacecraft lay in the same magnetic sector as the associated flare, while intermittent sparse injection episodes appear when the spacecraft footpoints are in the opposite sector or a wrap in the HCS bounded the CME structure.

Growth, unemployment and wage inertia

We introduce wage setting via efficiency wages in the neoclassical one-sector growth model to study the growth effects of wage inertia. We compare the dynamic equilibrium of an economy with wage inertia with the equilibrium of an economy without it. We show that wage inertia affects the long run employment rate and that the transitional dynamics of the main economic variables will be different because wages are a state variable when wage inertia is introduced. In particular, we show that the model with wage inertia can explain some growth patterns that cannot be explained when wages are flexible. We also study the growth effects of permanent technological and fiscal policy shocks in these two economies.

La liberalización de las telecomunicaciones en España : control de la inflación y universalización del servicio

Los estudios sobre la liberalización han enfatizado la importancia de las presiones externas en el impulso a las reformas pro mercado. Sin negar esta influencia, en este trabajo sostenemos que son los intereses nacionales los que determinan la estrategia y ritmos de la liberalización. La liberalización de las telecomunicaciones realizada en España en el período 1987-2003 presenta diferencias significativas respecto a la de otros países de la UE. Esas diferencias están relacionadas con las estrategias que se adoptaron internamente al ver cómo la liberalización podía afectar a los objetivos de política económica general. El artículo destaca la existencia de dos tipos de conflictos. En primer lugar, la tensión entre, por un lado, la necesidad de universalizar el acceso al servicio y, por otro, la de reducir los precios de las telecomunicaciones con el objetivo de controlar la inflación. En segundo lugar, los reformadores españoles tuvieron que escoger entre un modelo de competencia intraplataforma que permitiera a los entrantes utilizar la red de Telefónica a precios reducidos y asegurase rápidas reducciones de precios o un modelo de competencia inter-plataforma que fomentase la inversión, la competencia tecnológica y el bienestar a largo plazo. La consideración de estos conflictos internos es clave para entender la economía política de la política española de telecomunicaciones. Nuestra conclusión es que la liberalización en España se vio frenada cuando entró en conflicto con objetivos de interés general internos, pero se aceleró cuando fue percibida como un instrumento útil para el logro de los interesas nacionales.

Pass-through in dollarized countries: should Ecuador abandon the U.S. Dollar?

In this article we examine the convenience of dollarization for Ecuador today. As Ecuador is strongly integrated financially and commercially with the United States, the exchange rate pass-through should be zero. However, we sustain that rising rates of imports from trade partners other than the United States and subsequent real effective exchange rate depreciations are causing the pass-through to move away from zero. Here, in the framework of the Vector Error Correction Model, we analyse the impulse response function and variance decomposition of the inflation variable. We show that the developing economy of Ecuador is importing inflation from its main trading partners, most of them emerging countries with appreciated currencies. We argue that if Ecuador recovered both its monetary and exchange rate instruments it would be able to fight against inflation. We believe such an analysis could be extended to other countries with pegged exchange rate regimes.

Comission 49: Interplanetary plasma and heliosphere. TRIENNIAL REPORT 2006 - 2009

Commission 49 covers research on the solar wind, shocks and particle acceleration, both transient and steady-state, e.g., corotating, structures within the heliosphere, and the termination shock and boundary of the heliosphere. The present triennal report is particularly rich in important results and events. The crossing of the solar wind termination shock by Voyager 2 in 2007 is a highlight and a milestone that will certainly have important consequences for astrophysical processes in general (Section 7). The fiftieth anniversary of the International Geophysical Year (19571958), which is also the fiftieth anniversary of the birth of the Space Age, was marked not only by celebrations and a strong Education and Public Outreach Program, but also by efforts in coordinating present observations and in starting new scientific programs, particularly implying developing countries (Section 8). Studies of solar energetic particles (Section 3) and the related radio bursts (Section 4) benefited from new data from a number of spacecraft. The STEREO mission was launched in October 2006 and has obtained new results on 3-D aspects of the inner heliosphere. Meanwhile, solar cycle 24 is expected to become active soon, following what is already the deepest solar minimum of the space age...

Current Sheet Regulation of Solar Near-Relativistic Electron Injection Histories

We present a sample of three large near-relativistic (>50 keV) electron events observed in 2001 by both the ACE and the Ulysses spacecraft, when Ulysses was at high-northern latitudes (>60°) and close to 2 AU. Despite the large latitudinal distance between the two spacecraft, electrons injected near the Sun reached both heliospheric locations. All three events were associated with large solar flares, strong decametric type II radio bursts and accompanied by wide (>212°) and fast (>1400 km s-1) coronal mass ejections (CMEs). We use advanced interplanetary transport simulations and make use of the directional intensities observed in situ by the spacecraft to infer the electron injection profile close to the Sun and the interplanetary transport conditions at both low and high latitudes. For the three selected events, we find similar interplanetary transport conditions at different heliolatitudes for a given event, with values of the mean free path ranging from 0.04 AU to 0.27 AU. We find differences in the injection profiles inferred for each spacecraft. We investigate the role that sector boundaries of the heliospheric current sheet (HCS) have on determining the characteristics of the electron injection profiles. Extended injection profiles, associated with coronal shocks, are found if the magnetic footpoints of the spacecraft lay in the same magnetic sector as the associated flare, while intermittent sparse injection episodes appear when the spacecraft footpoints are in the opposite sector or a wrap in the HCS bounded the CME structure.

Massive protostars as gamma-ray sources.

Massive protostars have associated bipolar outflows with velocities of hundreds of km s-1. Such outflows can produce strong shocks when they interact with the ambient medium leading to regions of nonthermal radio emission. Aims. We aim at exploring under which conditions relativistic particles are accelerated at the terminal shocks of the protostellar jets and whether they can produce significant gamma-ray emission. Methods. We estimate the conditions necessary for particle acceleration up to very high energies and gamma-ray production in the nonthermal hot spots of jets associated with massive protostars embedded in dense molecular clouds. Results. We show that relativistic bremsstrahlung and proton-proton collisions can make molecular clouds with massive young stellar objects detectable by the Fermi satellite at MeV-GeV energies and by Cherenkov telescope arrays in the GeV-TeV range. Conclusions. Gamma-ray astronomy can be used to probe the physical conditions in star-forming regions and particle acceleration processes in the complex environment of massive molecular clouds.