CO2 emissions and economic activity: heterogeneity across countries and non stationary series

This paper explores the homogeneity of the functional form, the parameters, and the turning point, when appropriate, of the relationship between CO2 emissions and economic activity for 31 countries (28 OECD, Brazil, China, and India) during the period 1950 to 2006 using cointegration analysis. With a sample highly overlapped over time between countries, the result reveals that the homogeneity across countries is rejected, both in functional form and in the parameters of long term relationship. This confirms the relevance of considering the heterogeneity in exploring the relationship between air pollution and economic activity to avoid spurious parameter estimates and infer a wrong behavior of the functional form, which could lead to induce that the relationship is reversed when in fact it is direct.

Is monetary policy in new members states asymmetric?

Estimated Taylor rules became popular as a description of monetary policy conduct. There are numerous reasons why real monetary policy can be asymmetric and estimated Taylor rule nonlinear. This paper tests whether monetary policy can be described as asymmetric in three new European Union (EU) members (the Czech Republic, Hungary and Poland), which apply an inflation targeting regime. Two different empirical frameworks are

Topologías en espacios de matrices y sistemas Leontief y Leontief-Sraffa

Se demuestra que todo sistema tipo Leontief (o Leontief-Sraffa) puede ser transformado en uno estructuralmente equivalente en el que la matriz tecnológica A tenga la propiedad de que la suma de los elementos de cada columna sea el autovalor máximo a de A; lo que equivale a transformar las unidades físicas originales en unidades que (haciendo abstracción de la componente trabajo) tengan idéntica composición de capital. A un tal sistema transformado lo denominaremos homogeneizado. En este tipo de sistemas aparecen más cómodos los estudios del sistema de precios de Sraffa, la limitación del tipo de beneficio, el reparto del excedente, la interpretación económica de 1/(I - A), la interpretación de los precios utilizando el teorema del punto fijo, la evolución de los precios al variar el tipo de beneficio, etc. Se demuestra que en un sistema homogeneizado "idéntica composición orgánica de capital" (Marx) equivale a idéntica cantidad de trabajo directo.

Monetary policy rules and financial stress: does financial instability matter for monetary

We examine whether and how main central banks responded to episodes of financial stress over the last three decades. We employ a new methodology for monetary policy rules estimation, which allows for time-varying response coefficients as well as corrects for endogeneity. This flexible framework applied to the U.S., U.K., Australia, Canada and Sweden together with a new financial stress dataset developed by the International Monetary Fund allows not only testing whether the central banks responded to financial stress but also detects the periods and type of stress that were the most worrying for monetary authorities and to quantify the intensity of policy response. Our findings suggest that central banks often change policy

Medición del poder de mercado en la industria del cobre de Estados Unidos: una aproximación desde la perspectiva de la Nueva Organización Industrial Empírica.

El estudio de la relación entre la estructura de la industria y el poder de mercado ha sido uno de los temas más discutidos en la literatura microeconómica. En esta investigación se adopta el enfoque de la "Nueva Organización Industrial Empírica" (NOIE) y se siguen los modelos desarrollados por Bresnahan (1982) y Lau (1982), y Porter (1983) para analizar el efecto de varias fusiones y adquisiciones sobre el poder de mercado de la industria del cobre en Estados Unidos durante el periodo 1994 - 2009. Se destaca que aunque el análisis de la industria muestra una mayor concentración, los resultados sugieren que las fusiones y adquisiciones no tuvieron efecto sobre el poder de mercado y que la industria mantuvo una conducta competitiva durante el periodo analizado.

Ciudades que contribuyen a la sostenibilidad global

Trabajos anteriores han demostrado que gran parte de la variabilidad observada en la huella ecológica per cápita de los países puede explicarse a partir de las diferencias en renta per cápita y temperatura. La pregunta que nos planteamos en esta investigación es si el modelo urbano (densidad urbana y tamaño urbano) también puede ayudar a explicar dicha variabilidad. Los resultados obtenidos confirman el significativo impacto de la densidad urbana sobre la huella, por lo que controlar la dispersión urbana parece ser un mecanismo eficiente para reducir la huella ecológica de los países. En lugar de reflexionar sobre si las ciudades son o no son insostenibles por naturaleza, esta investigación se ha orientado de forma más operativa, intentando discernir qué tipo de modelo urbano contribuye en mayor medida a la sostenibilidad del planeta.

Homogeneización en un sistema de tipo Leontief (o Leontief-Sraffa)

Dado un sistema tipo Leontief (o Leontief - Sraffa), se demuestra que puede ser transformado en uno estructuralmente equivalente que denominaremos sistema homogeneizado en el que la matriz tecnológica A así como la inversa de Leontief poseen propiedades matemáticas relevantes relacionadas con el autovalor máximo a de A. Para un sistema homogeneizado es condición necesaria y suficiente para que los precios relativos en el sentido Sraffa permanezcan invariantes al modificar el tipo de beneficio, que los coeficientes de trabajo directo sean iguales. Asimismo para este tipo de sistemas, la razón entre la suma de las mercancías que componen el excedente y la suma de las mercancías utilizadas como medios de producción coincide con el tipo máximo de beneficio. Es lo que Sraffa denomino "razón patrón" (global) en su Sistema Patrón.

Economic growth and inequality: the role of fiscal policies

This paper analyses the impact of different instruments of fiscal policy on economic growth as well as on income inequality, using an unbalanced panel of 43 upper-middle and high income countries for the period 1972-2006. We consider and estimate two individual equations explaining growth and inequality in order to assess the incidence of different fiscal policies. Firstly, our approach considers imposing orthogonal assumptions between growth and inequality in both equations, and secondly, it allows growth to be included in the inequality equation, and inequality to be included in the growth equation. The empirical results suggest that an increase in the size of government measured through current expenditures and direct taxes diminishes economic growth while reducing inequality, being public investment the only fiscal policy that may break this trade-off between efficiency and equity, since increases in this item reduces inequality without harming output. Therefore, the results reflect that the trade-off between efficiency and equity that governments often confront when designing their fiscal policies may be avoided.

Cross-country polarisation in CO2 emissions per capita in the European Union: changes and explanatory factors

In this study, we analyse the degree of polarisation-a concept fundamentally different from that of inequality-in the international distribution of CO2 emissions per capita in the European Union. It is analytically relevant to examine the degree of instability inherent to a distribution and, in the analysed case, the likelihood that the distribution and its evolution will increase or decrease the chances of reaching an agreement. Two approaches were used to measure polarisation: the endogenous approach, in which countries are grouped according to their similarity in terms of emissions, and the exogenous approach, in which countries are grouped geographically. Our findings indicate a clear decrease in polarisation since the mid-1990s, which can essentially be explained by the fact that the different groups of countries have converged (i.e. antagonism among the CO2 emitters has decreased) as the contribution of energy intensity to between-group differences has decreased. This lower degree of polarisation in CO2 distribution suggests a situation more conducive to the possibility of reaching EU-wide agreements on the mitigation of CO2 emissions.

Explanatory factors of CO2 per capita emission inequality in the European Union

The design of European mitigation policies requires a detailed examination of the factors explaining the unequal emissions in the different countries. This research analyzes the evolution of inequality in CO2 per capita emissions in the European Union (EU-27) in the 1990-2006 period and its explanatory factors. For this purpose, we decompose the Theil index of inequality into the contributions of the different Kaya factors. The decomposition is also applied to the inequality between and within groups of countries (North Europe, South Europe, and East Europe). The analysis shows an important reduction in inequality, to a large extent due to the smaller differences between groups and because of the lower contribution of the energy intensity factor. The importance of the GDP per capita factor increases and becomes the main explanatory factor. However, within the different groups of countries the carbonization index appears to be the most relevant factor in explaining inequalities.

The link between public support and private R&D effort: What is the optimal subsidy?

The effectiveness of R&D subsidies can vary substantially depending on their characteristics. Specifically, the amount and intensity of such subsidies are crucial issues in the design of public schemes supporting private R&D. Public agencies determine the intensities of R&D subsidies for firms in line with their eligibility criteria, although assessing the effects of R&D projects accurately is far from straightforward. The main aim of this paper is to examine whether there is an optimal intensity for R&D subsidies through an analysis of their impact on private R&D effort. We examine the decisions of a public agency to grant subsidies taking into account not only the characteristics of the firms but also, as few previous studies have done to date, those of the R&D projects. In determining the optimal subsidy we use both parametric and nonparametric techniques. The results show a non-linear relationship between the percentage of subsidy received and the firms’ R&D effort. These results have implications for technology policy, particularly for the design of R&D subsidies that ensure enhanced effectiveness.

Mixture of bivariate Poisson regression models with an application to insurance

In a recent paper Bermúdez [2009] used bivariate Poisson regression models for ratemaking in car insurance, and included zero-inflated models to account for the excess of zeros and the overdispersion in the data set. In the present paper, we revisit this model in order to consider alternatives. We propose a 2-finite mixture of bivariate Poisson regression models to demonstrate that the overdispersion in the data requires more structure if it is to be taken into account, and that a simple zero-inflated bivariate Poisson model does not suffice. At the same time, we show that a finite mixture of bivariate Poisson regression models embraces zero-inflated bivariate Poisson regression models as a special case. Additionally, we describe a model in which the mixing proportions are dependent on covariates when modelling the way in which each individual belongs to a separate cluster. Finally, an EM algorithm is provided in order to ensure the models’ ease-of-fit. These models are applied to the same automobile insurance claims data set as used in Bermúdez [2009] and it is shown that the modelling of the data set can be improved considerably.

Age effects, unobserved characteristics and hedonic price indexes: The Spanish car market in the 1990s

This paper computes and compares alternative quality-adjusted price indexes for new cars in Spain in the period 1990-2000. The proposed hedonic approach simultaneously controls for time-invariant unobserved product e¤ects and time-variant unobserved quality changes, that are assumed to be captured by model age effects. The results show that the non-adjusted price index largely overstates the increase in the cost of living induced by changes in car prices and that previous evidence for this market have not measured the real extent of that bias, probably due to the omission of controls for unobservables. It is also shown that omitting age effects can also lead to misleading conclusions. The estimated price indexes give also some insights on what could have been the determinants of price evolution in the Spanish car market.

A correlation sensitivity analysis of non-life underwriting risk in solvency capital requirement estimation

This paper analyses the impact of using different correlation assumptions between lines of business when estimating the risk-based capital reserve, the Solvency Capital Requirement (SCR), under Solvency II regulations. A case study is presented and the SCR is calculated according to the Standard Model approach. Alternatively, the requirement is then calculated using an Internal Model based on a Monte Carlo simulation of the net underwriting result at a one-year horizon, with copulas being used to model the dependence between lines of business. To address the impact of these model assumptions on the SCR we conduct a sensitivity analysis. We examine changes in the correlation matrix between lines of business and address the choice of copulas. Drawing on aggregate historical data from the Spanish non-life insurance market between 2000 and 2009, we conclude that modifications of the correlation and dependence assumptions have a significant impact on SCR estimation.

Participació de Catalunya en convocatòries del 7è Programa marc d'R+D de la UE. Període 2007-2009

Resum de l'informe "Participació de Catalunya en convocatòries del 7è Programa marc d'R+D de la UE. Període 2007-2009" elaborat per investigadors del Grup de Recerca AQR - Institut de Recerca en Economia Aplicada (IREA) de la Universitat de Barcelona, que pretén donar a conèixer la realitat de la participació catalana en el 7è Programa Marc de la Unió Europea, el principal instrument europeu de finançament de la recerca, durant el període 2007-2009.