Economics and Econometrics Research Institute

Displaying 1-12 of 12 results

  • White Papers // May 2011

    Economic Growth, Technological Progress, And Social Capital: The Inverted U Hypothesis

    The authors set up a theoretical framework to analyze the possible role of economic growth and technological progress in the erosion of social capital. Under certain parameters, the relationship between technological progress and social capital can take the shape of an inverted U curve. They show the circumstances allowing the...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Nov 2010

    Fertility Choice And Financial Development

    The authors study the consequences of broader access to credit and to capital markets on household's decisions over the number of children. In a life-cycle model of choice with forward and backward caring between parents and children, they analyze the effects of relaxing adults' borrowing constrains and broadening the opportunities...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Sep 2010

    Predictive Ability Of Value-At-Risk Methods: Evidence From The Karachi Stock Exchange-100 Index

    Value-at-Risk (VaR) is a useful risk measure broadly used by financial institutions all over the world. VaR has been extensively used to measure systematic risk exposure in developed markets like of the US, Europe and Asia. This paper analyzes the accuracy of VaR measure for Pakistan's emerging stock market using...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Aug 2010

    Choosing Between Foreign Investment And Subcontracting: Strategies Of Italian Firms In Romania

    A firm that chooses to keep the production of an intermediate input within its boundaries can produce it at home or in a foreign country. When it keeps it at home, it engages in standard vertical integration. When it produces it abroad, it engages in foreign direct investment and intrafirm...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Aug 2010

    Time Zones And Periodic Intra-Industry Trade

    An important source of trade with time zone differences is related to the "Coincidence in time" aspect of service transactions. Trade across different time zones is gainful when fulfilling nighttime demand in one time zone by utilizing daytime supply in another time zone. This paper emphasizes that, due to communications...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Aug 2010

    The Impact Of The EU Blue Card Policy On Economic Growth In The African Sending Countries

    In 2009 the EU adopted a new migration policy instrument - the Blue Cards (BC) - for attracting highly skilled workers to the EU. The present paper examines the potential impacts, which BC may cause on the less Developed Sending Countries (LDC). According to the adopted framework of innovative capital,...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Aug 2010

    Estimating Gravity Models Of International Trade With Correlated Time-Fixed Regressors: To IV Or Not IV?

    Gravity type models are widely used in international economics. In these models the inclusion of time-fixed regressors like geographical or cultural distance, language and institutional (dummy) variables is often of vital importance e.g. to analyze the impact of trade costs on internationalization activity. This paper assesses the problem of parameter...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Jul 2010

    History, Culture, And Trade: A Dynamic Gravity Approach

    What determines trade patterns? Habit persistence in consumer tastes and learning-by-doing in production imply that history and culture matter. Deriving a dynamic gravity equation from a simple model, it is shown that cultural similarity is a product of history, so that trade patterns are a function of bilateral GDP, current...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Jul 2010

    Altruism, Education Subsidy And Growth

    An optimal education subsidy formula is derived using an overlapping generations model with parental altruism. The model predicts that public education subsidy is greater in economies with lesser parental altruism because a benevolent government has to compensate for the shortfall in private education spending of less altruistic parents with a...

    Provided By Economics and Econometrics Research Institute

  • White Papers // May 2010

    European Integration And Labour Migration

    The present paper studies how European integration might affect the migration of workers in the enlarged EU. Unlike the reduced-form migration models, the authors base this empirical analysis on the theory of economic geography ? la Krugman (1991), which provides an alternative modeling of migration pull and push factors. Parameters...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Mar 2010

    Real Interest Rates, Bubbles And Monetary Policy In The GCC countries

    The Gulf Cooperation Council countries (GCC) include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. Their monetary policy objective is to stabilize the foreign price, i.e., exchange rate instead of the domestic price level, where the nominal interest rate is equalized with the US federal fund rate, but the...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Aug 2009

    Term Structure Equations Under Benchmark Framework

    This paper makes use of an integrated benchmark modeling framework that allows deriving term structure equations for bond and forward prices. The benchmark or numeraire is chosen to be the Growth Optimal Portfolio (GOP). For deterministic short rate the solution of the bond term structure equation coincides with the explicit...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Aug 2009

    Term Structure Equations Under Benchmark Framework

    This paper makes use of an integrated benchmark modeling framework that allows deriving term structure equations for bond and forward prices. The benchmark or numeraire is chosen to be the Growth Optimal Portfolio (GOP). For deterministic short rate the solution of the bond term structure equation coincides with the explicit...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Mar 2010

    Real Interest Rates, Bubbles And Monetary Policy In The GCC countries

    The Gulf Cooperation Council countries (GCC) include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. Their monetary policy objective is to stabilize the foreign price, i.e., exchange rate instead of the domestic price level, where the nominal interest rate is equalized with the US federal fund rate, but the...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Aug 2010

    Choosing Between Foreign Investment And Subcontracting: Strategies Of Italian Firms In Romania

    A firm that chooses to keep the production of an intermediate input within its boundaries can produce it at home or in a foreign country. When it keeps it at home, it engages in standard vertical integration. When it produces it abroad, it engages in foreign direct investment and intrafirm...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Aug 2010

    The Impact Of The EU Blue Card Policy On Economic Growth In The African Sending Countries

    In 2009 the EU adopted a new migration policy instrument - the Blue Cards (BC) - for attracting highly skilled workers to the EU. The present paper examines the potential impacts, which BC may cause on the less Developed Sending Countries (LDC). According to the adopted framework of innovative capital,...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Sep 2010

    Predictive Ability Of Value-At-Risk Methods: Evidence From The Karachi Stock Exchange-100 Index

    Value-at-Risk (VaR) is a useful risk measure broadly used by financial institutions all over the world. VaR has been extensively used to measure systematic risk exposure in developed markets like of the US, Europe and Asia. This paper analyzes the accuracy of VaR measure for Pakistan's emerging stock market using...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Jul 2010

    History, Culture, And Trade: A Dynamic Gravity Approach

    What determines trade patterns? Habit persistence in consumer tastes and learning-by-doing in production imply that history and culture matter. Deriving a dynamic gravity equation from a simple model, it is shown that cultural similarity is a product of history, so that trade patterns are a function of bilateral GDP, current...

    Provided By Economics and Econometrics Research Institute

  • White Papers // May 2010

    European Integration And Labour Migration

    The present paper studies how European integration might affect the migration of workers in the enlarged EU. Unlike the reduced-form migration models, the authors base this empirical analysis on the theory of economic geography ? la Krugman (1991), which provides an alternative modeling of migration pull and push factors. Parameters...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Nov 2010

    Fertility Choice And Financial Development

    The authors study the consequences of broader access to credit and to capital markets on household's decisions over the number of children. In a life-cycle model of choice with forward and backward caring between parents and children, they analyze the effects of relaxing adults' borrowing constrains and broadening the opportunities...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Jul 2010

    Altruism, Education Subsidy And Growth

    An optimal education subsidy formula is derived using an overlapping generations model with parental altruism. The model predicts that public education subsidy is greater in economies with lesser parental altruism because a benevolent government has to compensate for the shortfall in private education spending of less altruistic parents with a...

    Provided By Economics and Econometrics Research Institute

  • White Papers // May 2011

    Economic Growth, Technological Progress, And Social Capital: The Inverted U Hypothesis

    The authors set up a theoretical framework to analyze the possible role of economic growth and technological progress in the erosion of social capital. Under certain parameters, the relationship between technological progress and social capital can take the shape of an inverted U curve. They show the circumstances allowing the...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Aug 2010

    Estimating Gravity Models Of International Trade With Correlated Time-Fixed Regressors: To IV Or Not IV?

    Gravity type models are widely used in international economics. In these models the inclusion of time-fixed regressors like geographical or cultural distance, language and institutional (dummy) variables is often of vital importance e.g. to analyze the impact of trade costs on internationalization activity. This paper assesses the problem of parameter...

    Provided By Economics and Econometrics Research Institute

  • White Papers // Aug 2010

    Time Zones And Periodic Intra-Industry Trade

    An important source of trade with time zone differences is related to the "Coincidence in time" aspect of service transactions. Trade across different time zones is gainful when fulfilling nighttime demand in one time zone by utilizing daytime supply in another time zone. This paper emphasizes that, due to communications...

    Provided By Economics and Econometrics Research Institute