The aim of this paper is to analyse the relationship between large firms’ knowledge spillovers and small and medium enterprises’ absorptive capacities. We build ad hoc indicators for these two concepts following a factor analysis methodology, and carry out a structural equations analysis to...

We consider a Heston type inflation model in combination with a Hull–White model for nominal and real interest rates, in which all the correlations can be non-zero. Due to the presence of the Heston dynamics our derived inflation model is able to capture the implied volatility skew/smile,...

While policies encouraging diffusion of new technologies provide incentives for adopting the focal good, they typically ignore the ecosystem of complementary goods and services. Based on existing literature on indirect network effects, we argue that when there is less availability of...

The study is motivated by the observation that a striking convergence of real wages has taken place, among many countries now in the OECD. What drives this phenomenal convergence, and is the experience unique in recorded economic history? In order to quantify the process, we explore a novel...