This paper attempts to explain the distribution of actual stock index returns using a mixture of the normal distributions model. This paper first defines the concept of structural breaks and derives a special form of structural breaks under the normality framework. It then applies the derived...

This paper provides an empirical analysis of the effects of the SNB's operating procedure on the adjustment speed and the volatility of Swiss franc Libor of different maturities. More precisely it presents econometric estimates of the effect of the two characteristics of the repo auctions on the...

This paper presents an interbank market model with a heterogeneous banking sector. We show that banks participate in the interbank market because they differ in marginal costs of obtaining funds from the European Central Bank. Our model shows that this heterogeneity implies intermediation by...

This paper estimates a structural VAR model for Switzerland consisting of key macroeconomic variables with quarterly data from 1974 to 2002, which allows the identification of a monetary policy shock with plausible impulse response patterns. Conditional forecasts generated by this model are used...

The burning of fossil fuels not only causes CO2 emissions but at the same time impairs local environmental condition such as ambient air quality. The present paper analyzes the distortion arising from international trade in carbon permits when local externalities persist. It is derived that the...

Most tariff-rate quotas (TRQs) around the world are allocated in rather intransparent ways. Yet, according to the fundamental WTO principles, TRQs are supposed to be allocated in a transparent, equitable and non-discriminatory manner. We argue that auctions offer a promising way to achieve these...

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The article analyzes the potential impact of the WTO Doha Round on Swiss agriculture by means of a general equilibrium model. Assuming a repetition of the Uruguay Round as anticipated outcome the raw milk output is reduced. The analysis shows that all imminent changes on Swiss agriculture like...

This study contains a set of estimates of reaction functions for the euro area based on a monthly data set starting in 1985. The main aim is to assess the performance of Taylor rules and to evaluate whether alternative specifications based, inter alia, on the inclusion of additional variables...

This paper investigates income inequality and mobility for the prime age working population of Switzerland in the early 80s and 90s. The empirical methods applied are based on nonparametric kernel density estimation. Mobility is interpreted here in terms of inequality reduction when the...