This paper proposes an empirical model for analyzing the dynamics of Bitcoin prices. To do this, we consider a vector error correction model over two overlapping periods: 2010-2017 and 2010-2019. Price discovery is achieved through the Gonzalo-Granger permanent-transitory decomposition. The...

This paper proposes a dynamic regression model that incorporates network effects from a large cross section of units. We consider a functional coefficient to measure these effects that is estimated using Taylor expansions over a partition of disjoint intervals of the compact support of the...

We study the consequences of forming a monetary union among a group of countries where the central banks lack independence and are pressured frequently to accommodate government objectives. This is a common situation in the developing countries. As it is common in the literature, we show that...