In this paper we highlight the importance of the operational costs in explaining economic growth and analyze how the industrial structure affects the growth rate of the economy. If there is monopolistic competition only in an intermediate goods sector, then production growth coincides with...

Defense literature is still in need of a theoretical framework in the neoclassical sense, in regard to empirical research on the relationship between defense spending and economic growth. In this respect, Dunne, Smith and Willenbockel (2005), although not without technical problems, represented...

In this paper, we explore the relationship between state-level household income inequality and macroeconomic uncertainty in the United States. Using a novel large-scale macroeconometric model, we shed light on regional disparities of inequality responses to a national uncertainty shock. The...

This paper explores an issue that arises in the delegation process. The paper shows that a myopic central banker, one who treats expectations as constant in setting discretionary policy, can replicate the behavior of output and inflation under policy from a timeless perspective. For that to...

This paper examines whether information from bond markets provides a reliable signal for future economic activity in Europe. It evaluates the marginal predictive content and economic significance of a risk-adjusted yield credit spread in five European countries from the early 1990s to the recent...

One of the more important statistical tools for the monitoring and analysis of the economic activity evolution in the short term is the availability of estimations of the quarterly GDP components, whether the supply side or whether the demand side. The need for having this information with a...

Over the last years there has been considerable interest in the application of long memory time series models in economics using ARFIMA models. Nowadays, the most popular estimator of the difference parameter in economic applications is that proposed by Geweke and Porter-Hudak (GPH) although has...

In this paper it is analyzed if the Contabilidad Nacional Trimestral series in Spain are extremely smooth and, therefore, if they really explain about the evolution of the Spanish economy on the short term. It is shown, by use of spectral analysis, that the Spanish quarterly series have a...