#2002-032C "Entrepreneurship and the Deregulation of Banking"
by Howard J. Wall
December 2002
Revised August 2003

This paper presents evidence that banking deregulation led to decreases in entrepreneurship in some U.S. regions, and to increases in others. This is contrary to recent research that found an unambiguous positive relationship. More...

PUBLISHED: Economics Letters, 2004, 82(3), pp. 333-39

#2002-031B "Patent Licensing Revisited: Heterogeneous Firms and Product Differentiation"
by Rubén Hernández-Murillo, and Gerard Llobet
November 2002
Revised September 2004

In this paper we study the optimal licensing agreement between a patentholder of a costreducing innovation and firms that have heterogeneous uses for the new technology. We consider the case in which these firms are competitors in a downstream market. More...

PUBLISHED: International Journal of Industrial Organization, January 2006, 24(1), pp. 149-75

#2002-030B "Substitution Elasticities and Investment Dynamics in Two Country Business Cycle Models"
by Michael R. Pakko
November 2002
Revised November 2003

Two country applications of equilibrium business cycle methodology have succeeded in matching some key features of international fluctuations. However, discrepancies between theory and data remain. More...

PUBLISHED: Topics in Macroeconomics, 2003, 3(1), pp. Article 14

#2002-029A "What's Unique About the Federal Funds Rate? Evidence From a Spectral Perspective"
by Lucio Sarno, Daniel L. Thornton, and Yi Wen
November 2002

A large empirical literature attempts to identify US monetary policy shocks using the effective federal funds rate. This paper compares the time series behavior of the effective federal funds rate to 10 US interest rates with maturities ranging form overnight to 10 years. More...

PUBLISHED: Oxford Bulletin of Economics and Statistics, April 2007, 69(2), pp. 293-319

#2002-028B "Monetary Policy Transparency: Transparent About What?"
by Daniel L. Thornton
November 2002
Revised May 2003

This paper puts the issue of monetary policy transparency into a broad economic perspective. In so doing, it narrows the focus from that which frequently appears in this literature. More...

PUBLISHED: The Manchester School, September 2003, 71(5), pp. 478-97

#2002-027A "Mergers and Acquisitions in Germany"
by Frank A. Schmid, and Mark Wahrenburg
November 2002

National differences in corporate governance practices in Europe, such as board structures, shareholder structures, and labor participation rights, make it difficult to operate in the European cross-border mergers and acquisitions environment. Particularly thorny issues are "golden shares" and labor participation in corporate decision-making. More...

#2002-026A "Cracks in the Facade: American Economic and Financial Structures After the Boom"
by William R. Emmons, and Frank A. Schmid
November 2002

The United States experienced a historic boom during the late 1990s and briefly into the new millennium, highlighted by rapid economic and productivity growth, surging corporate profitability, sustained business investment in many areas, including high technology and telecommunications, and a soaring stock market. More...

PUBLISHED: Structural Foundations of International Finance, Pier Carlo Padoan, Paul Brenton, and Gavin Boyd, Editors, (Cheltenham, UK: Edward Elgar, 2003)

#2002-025C "Business Cycle Filtering of Macroeconomic Data Via A Latent Business Cycle Index"
by Michael J. Dueker, and Charles R. Nelson
November 2002
Revised September 2005

We use Markov Chain Monte Carlo methods to augment, via a novel multi-move sampling scheme, a vector autoregressive system with a latent business cycle index that is negative during recessions and positive during expansions. We then sample counterfactual values of the macroeconomic variables in the case where the latent business cycle index is held constant. These counterfactual values represent posterior beliefs about how the economy would have evolved absent business cycle fluctuations. More...

PUBLISHED: Macroeconomic Dynamics, November 2006, 10(5), pp. 573-94

#2002-024B "Aggregated vs. Disaggregated Data in Regression Analysis: Implications for Inference"
by Thomas A. Garrett
October 2002
Revised November 2002

This note demonstrates why regression coefficients and their statistical significance differ across degrees of data aggregation. Given the frequent use of aggregated data to explain individual behavior, data aggregation can result in misleading conclusions regarding the economic behavior of individuals. More...

PUBLISHED: Economics Letters, October 2003, 81(1), pp. 61-65

#2002-023E "Is Inflation Persistence Intrinsic In Industrial Economies?"
by Andrew T. Levin, and Jeremy M. Piger
October 2002
Revised November 2003

We apply both classical and Bayesian econometric methods to characterize the dynamic behavior of inflation for twelve industrial countries over the period 1984-2003, using four different price indices for each country. In particular, we estimate a univariate autoregressive (AR) model for each series, and consider the possibility of a structural break at an unknown date. More...