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Established tests for proper calibration of multivariate density forecasts based on Rosenblatt probability integral transforms can be manipulated by changing the order of variables in the forecasting model. We derive order invariant tests. The new tests are applicable to densities of arbitrary...
Persistent link: https://www.econbiz.de/10011845266
This study investigates whether exchange rate flexibility aids real exchange rate adjustment based on intra-period data on dual exchange rates from developing countries. Specifically, it analyzes whether the flexible parallel market rate produces faster or slower real exchange rate adjustment...
Persistent link: https://www.econbiz.de/10003113305
Consider a contract over trade in continuous time between two players, according to which one player makes a payment to the other, in exchange for an exogenous service. At each point in time, either player may unilaterally require an adjustment of the contract payment, involving adjustment costs...
Persistent link: https://www.econbiz.de/10002856667
each model. The framework is used to analyze the adaptation vs. mitigation dilemma and provides a simple criterion to … determine whether adaptation activities should be undertaken promptly, delayed to some future date, or avoided altogether …. -- environmental pollution ; optimal management ; catastrophic transitions ; uncertainty ; adaptation ; mitigation …
Persistent link: https://www.econbiz.de/10009489041
By estimating a staggered price model over the period 1980q1-2010q2, this paper documents that, after the euro changeover, Italian retailers have increased the number of price adjustments, which has translated into a higher inflation rate, with a detrimental effect on the competitiveness of the...
Persistent link: https://www.econbiz.de/10009011167
adaptation to changing life circumstances. People may adapt or become more sensitive, to different degrees, to a deteriorated … the consequences for optimal climate policies and argues from a normative point of view that psychological adaptation …
Persistent link: https://www.econbiz.de/10010354841
Adaptation is omnipresent but people systematically fail to correctly anticipate the degree to which they adapt. This … ; adaptation ; habit-formation ; anticipation-bias ; paternalism …
Persistent link: https://www.econbiz.de/10009570029
looks at how it recently shifted into a modification of the original concept of adaptation. Using theoretical research in …
Persistent link: https://www.econbiz.de/10010461277
Persistent link: https://www.econbiz.de/10003498627
Persistent link: https://www.econbiz.de/10003498784