We present an experiment to compare the two fairness theories by Bolton and Ockenfels [ERC] and by Fehr and Schmidt [F&S]. If one wants to compare their predictive power, most of the experiments that are interpreted retrospectively are not helpful, since both theories make equal or very similar...

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An I(2) analysis of inflation and the markup is undertaken for the G7 economies and Australia. We find that the levels of prices and costs are best described as I(2) processes and that except for Japan a linear combination of the log levels of prices and costs cointegrate to the markup that is...

In the literature on convergence, the simple Markov chain model indicates evolution towards a twin-peaked world. Although cleansing the ergodic distribution of income across countries of short-run noise reinforces its twin-peaked shape, these twin peaks are not statistically significant....

The nonparametric censored regression model, with a fixed, known censoring point (normalized to zero), is y=max[0,m(x)+e], where both the regression function m(x) and the distribution of the error e are unknown. This paper provides consistent estimators of m(x) and its derivatives with respect...

Different models have stressed the importance of the costs of price-adjustment given that its existence justifies the possibility of some real effects caused by changes in nominal variables. This paper is focused on the evaluation of these costs from a microeconomic perspective. Using a database...

Proper consistency is defined by the properties that each player takes all opponent strategies into account (is cautious) and deems one opponent strategy to be infinitely more likely than another if the opponent prefers the one to the other (respects preferences). When there is common certain...

The paper studies agents’ investment decisions between general and speci…c in-vestments under di¤erent ownership structures in a thin, decentralized market where each agent’s decision a¤ects the decisions and welfare of other (otherwise unrelated) agents mainly through indirect market...

We develop a Bayesian cointegration test statistic that can be used under a Jeffreys' prior. The test statistic is equal to the posterior expectation of the classical score statistic. Under the assumption of a full rank value of the long run multiplier the test statistic is a random variable...