We analyze the net issues of the national euro area central banks in relation to the dynamics of the shadow economy within a panel cointegration framework. Besides the total net issues, we distinguish between large, medium and small euro banknotes and take due account of other determinants of...

A long literature has developed econometric methods for estimating individual-consumer-level demand systems that accommodate corner solutions. The increasing access to transaction-level customer purchase histories across a wide array of markets and industries vastly expands the prospect for...

In this note, we answer an open problem proposed in Baucells and Sarin (2010, p. 293) to find the optimal consumption sequence when habit formation dominates satiation in an intertemporal choice framework. We find that if consumers do not abstain from consuming goods then, for certain types of...

This study examined the comparative advantage of twenty major product categories exported between Nigeria and Brazil using Revealed Comparative Advantage (RCA) index, and measures the extent to which Nigeria's export supply match with Brazil's import demand using trade complementarity index...

The Engel's approach is widely used to estimate equivalence scales. In this paper, we start by recalling the theoretical framework of this approach as well as the econometric methods, which are usually adopted to estimate the Engel's scales. We point out the different elements that may largely...

A long literature has developed econometric methods for estimating individual-consumer-level demand systems that accommodate corner solutions. The increasing access to transaction-level customer purchase histories across a wide array of markets and industries vastly expands the prospect for...

We study the effect of price salience on whether a product is purchased and, conditional on purchase, the quality purchased. Consistent with our theoretical predictions, we find that making the full purchase price salient to consumers reduces both the quality and quantity of goods purchased. The...

The Hamilton method for estimating CPI bias is simple, intuitive, and has been widely adopted. We show that the method confiates CPI bias with variation in cost-of-living across income levels. Assuming a single price index across the income distribution is inconsistent with the downward sloping...