In an intertemporal Arrow-Debreu economy with a continuum of agents, suppose that the auctioneer
sets prices while the government institutes optimal lump-sum transfers period by period. An
earlier paper showed how subgame imperfections arise because agents understand how their current
decisions such as those determining investment will influence future lump-sum transfers. This observation
undermines the second efficiency theorem of welfare economics and makes «history» a widespread
externality. A two-period model is used to investigate the constrained efficiency properties of
different kinds of equilibrium. Possibilities for remedial policy are also discussed.
In this paper we broaden the standard debt sustainability framework used in the IMF-WB Heavily
Indebted Poor Countries (HIPC) Initiative to include the analysis of domestic public debt and
other feedback effects into the usual debt sustainability analysis (DSA). The latter does not take into
account the fully-fledged government budget constraint and the feedback effects of the fiscal and
monetary adjustment required by multilateral programs. This work focuses on the evaluation of total
public debt sustainability in a simple accounting framework that includes exchange rate effects. We
use new data on domestic public debt and show how the switch from foreign to domestic borrowing,
and rising domestic real interest rates are likely to undermine the overall sustainability and the
success of debt relief programs.
This work investigates the statistical properties of aggregate output growth rates in the U.S. and
Italy. We show that in both countries growth rates follow an exponential-power density, with tails
that are fatter than a normal distribution. Furthermore, fat tails appear to be robust with respect to:
(i) the output measure employed in the analysis; (ii) the presence of outliers, autocorrelation and heteroscedasticity;
(iii) the family of theoretical density employed in the analysis. Finally, we discuss
the implications of our findings for economics and econometrics.
This article provides a multi-dimensional index for evaluating well-being in the EU. It begins
with an overview of an analytical approach that goes beyond utilitarianism: Dasgupta’s quality of
life framework, which is defined according to the goals of EU policies and based on a set of indicators
that are both constituents and determinants of well-being. This framework is then used to draw
up an index, based on a Borda ranking, of the EU member countries in terms of their economic and
social well-being. This is followed by discussion of the correlation between the ranking and the indicators
In this paper we estimate the demand for alcoholic beverages in Italy following the rational addiction
framework by Becker and Murphy (1988) and using a GMM estimator. To increase confidence
in the reliability of this framework we use two different data sets: (i) a time series of annual
aggregate alcohol consumption from 1960 to 2002 supplied by ISTAT; (ii) a time series of household
data on wine, beer and liquor consumption recorded on a four-week basis from 1999:3 to
2004:4 and supplied by ISMEA-Nielsen. Both data sets support the hypothesis that alcohol consumers
are actually forward-looking. Past consumption is significant in explaining current consumption
thus detecting the addictive nature of alcohol. Short and long run price elasticities and the income
elasticity of demand are also calculated. Interestingly, the long run income elasticity of demand, as
derived from the rational addiction model, is higher than one both for aggregate and specific products
so alcoholic beverages turn out to be luxury goods.
Il nostro magazzino sarà chiuso dal 4 al 25 agosto. Prima della chiusura sarà possibile spedire i volumi ordinati entro la mattina del 30 luglio. Le spedizioni di libri riprenderanno regolarmente a fine agosto. Come sempre, per tutto il periodo estivo, è possibile acquistare con carta di credito e leggere immediatamente ebook, articoli e riviste in abbonamento.
Buona estate dal team VP.