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The Relationship between Market Structure and Innovation in Industry Equilibrium: A Case Study of the Global Automobile Industry

Hashmi, Aamir Rafique; Van Biesebroeck, Johannes - C.E.P.R. Discussion Papers - 2012

We first estimate a dynamic game for the global automobile industry and then compute a Markov Perfect equilibrium to study the equilibrium relationship between market structure and innovation. The key state variable in the model is the efficiency level of each firm and the market structure is...

Persistent link: https://www.econbiz.de/10011084428

Macro coordination: Forward Guidance as ‘cheap talk’?

Miller, Marcus; Zhang, Lei - C.E.P.R. Discussion Papers - 2014

In the context of revived output growth and business confidence in the UK, we analyse forward guidance as a ‘coordination device’, indicating that monetary accommodation will be available for a welcome and long-awaited shift out of prolonged recession. As David Miles has emphasised, however,...

Persistent link: https://www.econbiz.de/10011083934

Risking Other People’s Money

Andersson, Ola; Holm, Håkan J.; Tyran, Jean-Robert; … - C.E.P.R. Discussion Papers - 2013

We study risk taking on behalf of others in an experiment on a large random sample. The decision makers in our experiment are facing high-powered incentives to increase the risk on behalf of others through hedged compensation contracts or with tournament incentives. Compared to a baseline...

Persistent link: https://www.econbiz.de/10011084365

Theories of Fairness and Reciprocity - Evidence and Economic Applications

Fehr, Ernst; Schmidt, Klaus M. - C.E.P.R. Discussion Papers - 2001

Most economic models are based on the self-interest hypothesis that assumes that all people are exclusively motivated by their material self-interest. In recent years experimental economists have gathered overwhelming evidence that systematically refutes the self-interest hypothesis and suggests...

Persistent link: https://www.econbiz.de/10005656392

First Impressions Matter: Signalling as a Source of Policy Dynamics

Hansen, Stephen; McMahon, Michael - C.E.P.R. Discussion Papers - 2013

We provide the first direct empirical support for the relevance of signalling in monetary policy. In our dynamic model …. Signalling leads all bankers to be tougher on inflation initially, but to become less tough with experience. This evolution is … structurally estimate the model using Bank of England data and confirm both predictions. Signalling increases the probability new …

Persistent link: https://www.econbiz.de/10011084410

Foreign Exchange Intervention, Policy Objectives and Macroeconomic Stability

Vitale, Paolo - C.E.P.R. Discussion Papers - 2001

Within a simple model of monetary policy for an open economy, we study how foreign exchange intervention may be used to condition agents' beliefs of the objectives of the policymakers. Differently from cheap talk foreign exchange intervention guarantees a unique equilibrium. Foreign exchange...

Persistent link: https://www.econbiz.de/10005124447

Is Central Bank Transparency Desirable?

Sibert, Anne - C.E.P.R. Discussion Papers - 2006

I analyse central bank transparency when the central bank's objective function is its private information. Non-transparency exists when the public does not observe the action of the central bank and an unobservable component of the inflation-control error keeps the public from using its...

Persistent link: https://www.econbiz.de/10005656252

Monetary Policy With Uncertain Central Bank Preferences

Sibert, Anne - C.E.P.R. Discussion Papers - 2001

?This Paper considers monetary policy when the weight policy makers put on output loss relative to inflation is their private information. I show that in the first period of a two-period term, all policy makers but the least inflation averse inflate less – but respond more to shocks – than...

Persistent link: https://www.econbiz.de/10005661789

Structural Uncertainty and Central Bank Conservatism: The Ignorant Should Keep Their Eyes Shut

Rosal, Joao Mauricio; Spagat, Michael - C.E.P.R. Discussion Papers - 2002

the Phillips curve the less does optimal policy aim towards learning. …

Persistent link: https://www.econbiz.de/10005497983

Learning-by-doing, Market Structure and Industrial and Trade Policies

Dasgupta, Partha; Stiglitz, Joseph E - C.E.P.R. Discussion Papers - 1985

In this article the authors explore, in a preliminary way, some of the effects of learning-by-doing on the structure …, conduct and performance of an industry. Learning is seen as a decline in a firm's unit production cost as a consequence of an … a variant of the classical infant-industry argument holds and also ones where the presence of a foreign learning curve …

Persistent link: https://www.econbiz.de/10005281306