There is a common problem in the general decomposition models, i.e. the residual term. In some models the residual is omitted that causes a large estimation error, while in some models the residual ...is regarded as an interaction that still leaves a new puzzle for the reader. A complete decomposition model introduced here has solved this problem. As an example of the application of the complete decomposition model, the decomposition of the changes in the world energy consumption, energy intensity in 1973–1990 has been modeled.
This article discusses the political uses of eros and mourning in Raúl Zurita's 1985 work Canto a su amor desaparecido (Santiago: Metropolitana). I argue that the poet relies on eros and mourning as ...the few remaining sources of shared meanings in Chile during the Pinochet dictatorship, which was characterized by a breakdown in communication. Zurita's critical strategy exploits two paradoxes: the reality of eros as both spatializing and universal, and the disappeared as both temporal and intemporal presences/absences. The situational conflation of these two paradoxes allows love to act as a refraction against the regime's appropriation of history and public discourse. At the same time, Zurita's work distinguishes itself from that of his contemporaries writing against the dictatorship by proposing love as a transcendent, objective reality: a Tao or universal which neutralizes the regime's aims.
The study explores the influence of domestic competition on international trade performance, using data from a broad sample of Japanese industries. Domestic rivalry is measured directly using ...market-share instability rather than employing structural variables such as seller concentration. We find robust evidence that domestic rivalry has a positive and significant relationship with trade performance measured by world export share, particularly when R&D intensity reveals opportunities for dynamic improvement and innovation. Conversely, trade protection reduces export performance. These findings support the view that local competition-not monopoly, collusion, or a sheltered home market-pressures dynamic improvement that leads to international competitiveness.
In this paper, I ask the question: Does the output-mix of countries change in response to changes in factor endowments? If so: How long does it take? Using data on capital, as well as skilled and ...unskilled labour employed in three-digit International Standard Industrial Classification (ISIC) manufacturing industries for a sample of 27 developing and developed countries over the 1973-1990 period, I find that the output-mix of countries does not change in response to endowment changes, even after 15 years. This answer raises another question: How then do countries absorb changes in factor endowments? The data show that in both the short and long runs, an increase in the supply of a production factor reduces its rate of return and makes it more intensively used in all sectors of the economy: changes in production techniques. In the long run, the point estimate is that the reduction in the rate of return is more than 50% larger than in the short run. This is consistent with induced innovations being predominantly biased towards the scarce factor.
The relationship between the economic structure of a country and its productivity growth has received a lot of attention in recent decades. For instance, several theoretical models in this area now ...suggest that countries that specialize in technologically progressive industries will enjoy high rates of growth compared to other countries. This paper focuses on the impact of specialization and structural changes on productivity growth in manufacturing, using a sample of 39 countries and 24 industries between 1973 and 1990. The results show that while structural change on average has not been conducive to productivity growth, countries that have managed to increase their presence in the technologically most progressive industry of this period (electronics) have experienced higher productivity growth than other countries.
We provide a model for analyzing effects of the tax system and spending programs on the determination of government spending and taxpayer welfare. An improvement in the efficiency of either taxes or ...spending would reduce political pressure for suppressing the growth of government and thereby increase total tax revenue and spending. We demonstrate the similarity of the political responses to revenue shocks, spending shocks, changes in tax efficiency, and changes in spending program efficiency. Empirical analysis of oil shocks, intergovernmental grants, and other autonomous changes in taxes or spending indicates that cause and effect is not only from spending to tax structures.
This article empirically examines the liquidity premium predicted by the Amihud and Mendelson (1986) model using Nasdaq data over the 1973-1990 period. The results support the model and are much ...stronger than for the New York Stock Exchange (NYSE), as reported by Chen and Kan (1989) and Eleswarapu and Reinganum (1993). I conjecture that the stronger evidence on the Nasdaq is due to the dealers' inside spreads on the Nasdaq being a better proxy for the actual cost of transacting than the quoted spreads on the NYSE, since the Nasdaq dealers do not face competition from limit orders or floor traders.
One interpretation of the evidence is that countries that overborrowed - the severely indebted countries - are precisely the ones with less precommitment in monetary policy. Therefore, the negative ...link between inflation and openness is stronger among them. This explanation would explain why openness is empirically important as a determinant of inflation only for the severely indebted countries. This interpretation, however, does not account for the fact that the relation is notably stronger during the debt crisis period. It is important to note that the alternative explanation of the data offered is not contradictory to the precommitment argument. Both absence of precommitment in monetary policy and debt crisis may be an important determinant of inflation.
The short-term rate of interest is fundamental to much of theoretical and empirical finance, yet no consensus has emerged on the dynamics of its volatility. We show that models which parameterize ...volatility only as a function of interest rate levels tend to over emphasize the sensitivity of volatility to levels and fail to model adequately the serial correlation in conditional variances. On the other hand, serial correlation based models like GARCH models fail to capture adequately the relationship between interest rate levels and volatility. We introduce and test a new class of models for the dynamics of short-term interest rate volatility, which allows volatility to depend on both interest rate levels and information shocks. Two important conclusions emerge. First, the sensitivity of interest rate volatility to interest rate levels has been overstated in the literature. While this relationship is important, adequately modeling volatility as a function of unexpected information shocks is also important. Second, we conclude that the volatility processes in many existing theoretical models of interest rates are misspecified, and suggest new paths toward improving the theory.
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