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In this paper we perform a meta-analysis of the effects of monetary policies on output and prices. We use a sample of published papers on the effects of monetary policies in different countries. There is a large variation in the estimated effects of monetary policies on output and prices. We find that the use of different econometric methodologies is an important variable explaining these differences. In addition, we analyze the importance of macroeconomic variables. Thus we find that in countries with high inflation, the output effects of monetary policies are significantly reduced. A lot of variation in the estimated effects of monetary policies remains unexplained. More research will have to be done to understand these large differences.

The general necessary optimality conditions for second‐best discrete multipart tariffs are rather complex. In this paper, we derive a simplified characterization of these conditions for two‐part tariffs and for block‐rate tariffs for given thresholds of these tariffs. The simplified necessary optimality conditions are equivalent to the necessary conditions for a Ramsey‐optimum for goods with continuously variable individually demanded quantities. We demonstrate that this characterization of second‐best multipart tariffs can be helpful, when applying the usual regulatory mechanisms to these tariffs. In particular, we consider Vogelsang–Finsinger (1979) regulation as well as a particular form of price‐cap regulation which is related to the Laspeyres index of prices.

ABSTRACTThis paper presents a common modelling structure for (i) the implementation of operational policies by individual purchasing managers of risk‐sharing agreements among supply‐chain partners, and (ii) the integration of brick and click purchasing policies in a B2B. The problem of price uncertainty created within these two environments is modelled as a stochastic repetitive‐sales problem, applicable to any probability distribution. The model identifies sufficient conditions for regenerative ordering cycles, which allows for the use of the renewal reward theorem. The end result is a two‐price purchasing policy, which may substantially ease implementation problems across a global corporation's purchasing managers world‐wide and across B2B markets.

English
The regulation of drug prices is an excellent example of the type of tensions that are emerging in the UK's new system of multi-level governance. Both the benefits and regulatory burden of the Pharmaceutical Price Regulation Scheme (PPRS) are regionally concentrated. However, those regional concentrations are not coterminous. The PPRS as an industrial policy supports jobs primarily in the south east and east of England. However, Wales (along with Scotland and Northern Ireland) bears a relatively greater share of the regulatory burden of the PPRS by virtue of prescribing more medicines. The potential for Welsh autonomy in this area is considered in terms of economic, administrative and political constraints.

Since the second half of the nineties the euro area has been subject to a considerable accumulation of temporary and idiosyncratic price shocks. Core inflation indicators for the euro area are thus of utmost interest. Based on euro area-wide data core inflation in this paper is analyzed by means of an indicator derived from the generalized dynamic factor model. This indicator reveals that HICP inflation strongly exaggerated both the decline as well as the increase in the price trend in 1999 and 2000/2001. Our results reinforce those achieved by Cristadoro, Forni, Reichlin and Versonese (2001) based on euro area country data which indicates the robustness of the indicator. Klassifikation: C33, E31

We use rolling cointegration to measure the convergence of base money, M2, the consumer price index and industrial output between two reference countries, Germany and France, and recent EU members and some transition economy candidates. Counties that recently joined the EU exhibit time-varying cointegration with the reference countries over much of the 1980-2000 sample period. Cointegration for the transition economies was comparable for M2 and prices, but less so for monetary policy and industrial output. This suggests that a peg to the Euro upon accession is feasible for the East European candidates, but the benefits of joining the Euro zone are as yet limited.

The effect of information and communications technology (ICT) and other investment on the UK's GDP potential is analysed and tests of the standard assumptions are provided. It is found that, in the absence of hedonic price series for the UK ICT sector, it is acceptable to use surrogates based on the law of one price. The investment data are consistent with the assumptions of optimality and homotheticity. So, in the absence of quality–adjusted measures of labour supply, it is legitimate to assess the contribution of investment to GDP potential independently. Capital investment increased UK GDP potential by about 1½ per cent per annum during 1985–2000.

AbstractMost initial public offerings (IPOs) feature "lockup" agreements, which bar insiders from selling the stock for a set period following the IPO, usually 180 days. We examine stock price behavior in the period surrounding lockup expiration for a sample of 2,529 firms from 1988 to 1997. We find that lockup expirations are, on average, associated with significant and negative abnormal returns, but the losses are concentrated in firms with venture capital backing. For the venture‐capital‐backed group, the largest losses occur for high‐tech firms and firms with the greatest post‐IPO stock price increases, the largest relative trading volume in the period surrounding expiration, and the highest quality underwriters.JEL classification: G14, G24

Using U.S. Consumer Expenditure Surveys, we estimate "quality Engel curves" for 66 durable goods based on the extent richer households pay more for each good. The same data show that the average price paid rises faster from 1980 to 1996 for goods with steeper quality Engel curves, as if households are ascending these curves. BLS prices likewise increase more quickly for goods with steeper quality Engel curves, suggesting the BLS does not fully net out the impact of quality upgrading. We estimate that annual quality growth averages 3.7 percent for our goods, with 2.2 percent showing up as higher inflation. (JEL D12, O40, E31)

This paper criticizes Brenner's emphasis on competition within Manufacturing in his analysis of the falling profit rate, and the subsequent extension of this fall to the entire economy. His assumptions concerning price competition appear arbitrary and proofs are deficient. Brenner cannot escape the reliance on the rise of wages, contrary to what he contends in his criticism of profit-squeeze theory. Several basic theoretical issues, such as adjustment by prices (as in neoclassical models) or by quantities produced (as in Keynesian models), partial or general analysis are not treated properly. For Marx, the decline of the profit rate causes competitive wars; the inverse relationship is posited by Brenner.

This paper provides a simple model of corruption dynamics with the ratchet effect. Corrupt officials have ex post the incentive to price discriminate entrepreneurs based on the entry decisions made in an earlier period. The inability of government officials to commit to future money demands induces entrepreneurs to delay entry in order to receive a discount in the permit price later. Even though the dynamic setting leaves the corrupt official with less extortion power, social welfare may decrease. We also explore the effect of the official's tenure stability on the extent of corruption. This allows us to identify circumstances under which the often observed practice of job rotation can help mitigate corruption.

Parliamentary procedure has largely been neglected as a constraint on government. Political developments in the UK & a (contested) scholarly focus on institutions provide the basis for reevaluating the consequences of procedure in the British Parliament. Procedure in both Houses of Parliament is well established & institutionalized. The capacity of procedural rules to constrain government is illustrated through empirical examples. Rational choice theory & historical institutionalism are utilized to explain why rules endure, despite government having the political resources to change them. The "price" of change can be too much for government in terms of time & intellectual resources, in terms of future prices & in terms of legitimacy. Consequently, procedure matters. Adapted from the source document.

The author begins by asking why Brazilian policymakers opted to target the exchange rate to stabilize inflation when this strategy had already failed in Mexico. The answer: It was no longer possible to accomodate the country's high inflation rate through the pervasive use of price indexation and a competitive exchange rate policy. The anchoring of the exchange rate within the Real Plan was the quickest route toward price stability. Brazil's recovery under a flexible currency regime suggests that the macroeconomic fundamentals are back on track. The challenge now lies in the crafting of a viable coalition that can cut through the mumerous parochial interests that converged to provoke the 1999 devaluation. (Rev Econ Pol/DÜI)

AbstractWe examine the long‐run stock price and operating performance of companies that withdraw seasoned equity offerings (SEOs). Firms that withdraw an offering provide an opportunity to examine whether markets fully adjust to the information conveyed when managers announce the intent to issue shares, independent of any agency problems that might be intensified by the completion of the offering. As in completed seasoned equity offerings, long‐horizon event‐time operating and stock price performance in sample firms is substantially lower than what is observed among control firms. Underperformance is also observed in an equally weighted calendar‐time analysis. Results are consistent with overpricing among small firms that attempt, but then withdraw, SEOs.