Seminario 14/29: J.A. Espín (Yale) – The illiquidity of water markets


ABSTRACT: In 1966, the irrigation community in Mula (Murcia, Spain) switched from a market (auction), which had been in place in the town for over 700 years, to a system of fixed quotas with a ban on trading, to allocate water from the town’s river. We present a model, in which farmers face liquidity constraints…

Seminario 14/28: J.C. Negrete (UMU) – Distortionary Taxation and Central Bank Design in Monetary Union


ABSTRACT: We consider a monetary union where discretionary monetary policy creates the classical inflation bias. We analyze how the design of the central bank interacts with fiscal policy under distortionary taxation. We show that when countries share a single currency the perils of not having a conservative enough central bank are more severe. This result…

Seminario 14/27: D. Tirado (UB) – «Integración Económica y Desigualdad Territorial: Lecciones de la Historia Económica de España»


ABSTRACT: Según los datos ofrecidos por el Eurostat Regional Yearbook de 2012, la persistencia de una elevada desigualdad territorial sigue siendo uno de los grandes problemas que enfrenta la Unión Europea. Si tomamos las NUTS2 como unidad territorial básica, el PIB per cápita de la región más rica de EU27 (Inner London) alcanza un valor…

Seminario 14/26: M.A.CARNERO (UA) – Identification of asymmetric conditional heteroskedasticity in the presence of outliers


ABSTRACT: The identification of asymmetric conditional heteroscedasticity is often based on sample cross-correlations between past and squared observations. In this paper we analyse the effects of outliers on these cross-correlations and, consequently, on the identification of asymmetric volatilities. We show that, as expected, one isolated big outlier biases the sample cross-correlations towards zero and hence could hide true leverage…

Seminario 14/25 – F.Alcalá (UMU): Time to Consume, Consumption Quality and Hours Worked


ABSTRACT: The quality dimension of consumption plays a distinctive and important role in many economic areas. This paper provides a new approach to the demand for quality building from the fact that consumption has to be combined with time to produce utility. Focusing on the implications of this approach on the labor supply, the paper…

Seminario 14/24: S. Álvarez (UMU) – Voluntary early exercise and performance-vested option grants: an analysis of the incentive effects.


ABSTRACT: Classical option pricing models are not well suited to the valuation of executive stock options (ESOs) and their incentive effects. The special characteristics of ESOs make standard methods difficult to apply to these options. The Wu-Lin model is a completely analytical expression based on the common feature of attaching performance targets to option vesting….

Seminario 14/23 – Fernando BRONER (UPF,MIT): Sources of Comparative Advantage in Polluting Industries

contaminacion ladrillo

Abstract: We study the determinants of comparative advantage in polluting industries. We combine data on environmental policy at the country level with data on pollution intensity at the industry level to show that countries with laxer environmental regulation have a comparative advantage in polluting industries. Further, we address the potential problem of reverse causality. We…

Seminario 14/22 – Enrique SENTANA (CEMFI): Is a normal copula the right copula?


Abstract   Nowadays copulas are extensively used in economic and finance applications, with the Gaussian copula being very popular despite ruling out non-linear dependence, particularly in the lower tail. We derive computationally simple and intuitive expressions for score tests of Gaussian copulas against Generalised Hyperbolic alternatives, which include the symmetric and asymmetric Student t, and Hermite polynomial expansions. We…

Seminario 14/21 – Laura HOSPIDO (BDE): The Cycle of Earnings Inequality: Evidence from Spanish Social Security Data

Desigualdad salarial

Abstract We use detailed information on labor earnings and employment from Social Security records to document earnings inequality in Spain from 1988 to 2010. Male earnings inequality was strongly countercyclical: it increased around the 1993 recession, showed a substantial decrease during the 1997-2007 expansion and then a sharp increase during the recent recession. These developments were partly driven by…

Seminario 14/20 – Luis CORCHON (UC3M): Dynamic Contests with Bankruptcy: The Despair Effect


Abstract In this paper we analyze a two period contest in which agents may become bankrupt at the end of the first period. A bankrupt agent is excluded from the contest in the second period of the game. We investigate the existence of a subgame perfect equilibrium in pure strategies. We distinguish between a borrowing…