economics, decisions are often based on forecasts of up{ or downward movements of the variable of interest. We point out that …

.A.S.E. - Center for Applied Statistics and Economics, Spandauer Str. 1, 10178 Berlin, Germany, and Faculty of Economics & Business ….A.S.E. - Center for Applied Statistics and Economics, Spandauer Str. 1, 10178 Berlin, Germany, and National Central University …, Department of Finance, No. 300, Jhongda Rd., Jhongli City, Taoyuan County 32001, Taiwan (R.O.C.) ‡School of Business and …

.), Handbook of Labor Economics. Calvo, G. A. (1983), Staggered prices in a utility-maximizing framework, Journal of Monetary … Economics, 12(3), 383�98. Campbell, J. R. and B. Eden (2005), Rigid prices: evidence from u.s. scanner data, Working paper …), Identifying the in�uences of nominal and real rigidities in aggregate price-setting behavior, Journal of Monetary Economics, 54 …

PRODUCTION Michael C. Burda and Daniel S. Hamermesh Professor of economics, Humboldt …-Universität zu Berlin and research associate, CEPR and IZA; Sue Killam Professor of economics, University of Texas at Austin …, professor of labor economics, Maastricht University and research associate, IZA and NBER. We thank Valerie Ramey, Steve Trejo …

-Universit at zu Berlin is gratefully acknowledged. yCASE { Center for Applied Statistics and Economics, Humboldt-Universit at zu … economics is a challenging task in particular in a dynamic context. With the formulation of utility maximisation theory … risk aversion parameters and economic indicators of the business cycle sig at 1% = * sig at 5% = ** sig at 10 …

reflects the uncertainty behind new or changing regulation over time. Different surveys on business risk agree that regulatory … risk is one of the greatest threat to modern businesses. For instance, the Ernst&Young 2008 survey on strategic business …. Without loss of generality, I assume that the party r has a more business friendly orientation so that ∆λ ≡ λr −λl > 0. In …

grateful for nan- cial support by the Frankfurt Graduate Program in Monetary Economics and Finance and the German Research …. Amano, R. (2007). In ation persistence and monetary policy: A simple result. Economics Letters 94, 26{31. Andersen, T. G., T … in ation rates: Interna- tional evidence. Journal of Business & Economic Statistics 13, 37{45. 17 Hidalgo, J. and P. M …