This paper studies the role of long-term unemployment in the determination of prices and wages.
Labor market theories such as insider-outsider models predict that this type of unemployed are
less relevant in the wage formation process than the newly unemployed. This paper looks for
evidence of this behavior in a set of OECD countries. For this purpose, I propose a new
specification of the Phillips Curve that contains different unemployment lengths in a time-varying
However, China’s industry is dependent on non-wood fibers (largely agricultural
residues) at a 3:1 ratio over wood fiber. This suggests a concentration of many smaller
operations. In fact, China’s rapid agricultural growth since 1978 provided fiber for
eight-fold growth in the production of smaller papermills between 1984 and 1992
(CTAPI (1993)). The smaller mills have been rapid innovators, but they remain
especially environmentally intrusive. They are dependent on pollution control
technologies that are not as effective for non-wood fibers.
First, standard cross-sectional determinants of firms’ capital structures also apply to
large, publicly traded banks in the US and Europe, except for banks close to the
minimum capital requirement. The sign and significance of the effect of most variables
on bank capital structure are identical to the estimates found for non-financial firms.
This is true for both book and market leverage, Tier 1 capital, when controlling for risk
and macro factors, for US and EU banks examined separately, as well as when
examining a series of cross-sectional regressions over time. ...
This study contains two objectives. The Örst is the identiÖcation of the
public perception of monetary policy to establish a relationship between this
perception, the behaviour of monetary authorities and some key economic
variables. The second objective is the identiÖcation of the relationship between
monetary policy and the term structure of interest rates. In particular, we are
interested by the link with long-term interest rates. From this perspective,
the works of Kozicki and Tinsley (1998, 2001a, 2001b) are interesting for two
We are especially grateful to staff members at the Federal Reserve Bank of Richmond who did such an
excellent job in producing the book. Elaine Mandaleris, the Research Department's publications supervisor,
provided critical support in the initial stages of the book's production and in the coordination of the staff.
Dawn Spinozza, the managing editor for Instruments, did an exceptional job in editing the copy and
organizing the ongoing production of the book. Gale (Geep) Schurman, the graphic artist, did an excellent
job in producing the charts and design work.
Nonfinancial and nonbank financial businesses raise funds in the money market primarily
by issuing commercial paper, which is a short-term unsecured promissory note. In recent years an
increasing number of firms have gained access to this market, and commercial paper has grown at a rapid
pace. Business enterprises—generally those involved in international trade—also raise funds in the money
market through bankers acceptances. A bankers acceptance is a time draft drawn on and accepted by a
bank (after which the draft becomes an unconditional liability of the bank).
Established as a temporary mechanism or a transitory program, social
funds were intended to transfer resources to those groups that were
hardest hit by adjustment programs. In the last few years, they have
become more like permanent poverty reduction programs. NGOs point
out that, while the purpose of social funds is not to eliminate the struc-
tural causes of poverty, it is possible for them to affect some of its symp-
toms and manifestations.
How important are these issues, and do they carry any ramifications
for the newMedicare prescription drug benefit? One of the problems, to
which Rubinstein alluded, is that elders may be facing too many options
and too much information and thus need to devise “impression manage-
ment” techniques in order to compensate for cognitive or physical loss.
However, their empirical observations can also be interpreted at hinting at a much more
fundamental problem with the causality between savings and investment proclaimed by
textbook theory. This thought is not new. The causation between saving and investment has
long been disputed and not yet been solved.
Based on the works of Keynes and Schumpeter,
some economists argue that the causation does not run from saving to investment, but rather
from investment to saving.
Present the draft agreement to the client in person, if possible, so
that you can explain the contents and answer any questions. Don’t be
surprised if they ask for modiﬁ cations or additional items to be included.
Here are some of the issues that may come up:
Often the initial client response will be to ask for a lower price. It’s best
for you to avoid getting into a discussion of standard hourly rates. Discuss
the scope of work instead. Focus on the main objectives. Can portions of
the project be scaled back? Are there components that can be broken...
To provide regulators, developers and other interested parties with authoritative and researched advice on how best to identify, assess and tackle the problems associated with land contamination. The publications cannot address the specific circumstances of each site, since every site is unique. The Contaminated Land Research Report series deals with information needed to assess risks - procedures for categorising and assessing risks - and evaluation and selection of remedial measures.
The Kenya Working Papers series is an unreviewed, unedited prepublication series of papers
reporting on studies in progress. This paper is based on further analysis of data collected in the
2004 Kenya HIV/AIDS and Maternal and Child Health Service Provision Assessment (KSPA).
The 2004 KSPA was supported by the United States Agency for International Development
(USAID), the United Nations Children’s Fund (UNICEF), and the U.K. Department for
International Development (DFID).
In this research report, Aliou Diagne and Manfred Zeller examine the case of
Malawi, where several institutions offer credit to poor, smallholder farmers to allow
them to buy fertilizer, seeds, and other inputs for growing maize and tobacco as a
way of helping raise incomes. Surprisingly, they find that farmers who participated
in these credit programs ended up with less net crop income than those who did not.
The purpose of this paper is to evaluate if Önancial asset prices and, in par-
ticular, sectoral stock prices can help to predict real economic growth. The study
is applied to euro area Önancial market prices and real economic growth over the
sample 1973 to 2006. The evaluation of the predictive power between the Önan-
cial assets is based on the relative improvements in the Mean Square Forecast
Errors (MSFE) compared to the MSFE of a simple optimal autoregressive (AR)
model, in an out-of-sample forecasting exercise.
As you might imagine, the program
wasn’t just a sensation in terms of sales
numbers. It has generated a flood of opinions,
on both sides of the matter, as well as
numerous copycat artists attempting to sell
their own “no cold calling” programs. While
there are plenty of people who agree with me
that cold calling is now obsolete, the most
heated – and angry – opinions come from
those who still support the idea of cold calling.
Most of these people are the “old-school” types
I mentioned, the stereotypical dictator sales
Regarding banks’ capital structures, the standard view is that capital regulation
constitutes an additional, overriding departure from the Modigliani-Miller irrelevance
proposition (see for example Berger et al., 1995, Miller, 1995, or Santos, 2001). Commercial
banks have deposits that are insured to protect depositors and to ensure financial stability. In
order to mitigate the moral-hazard of this insurance, commercial banks must be required to
hold a minimum amount of capital.
Numerous market participants and Federal Reserve staff members generously provided information that
was helpful in writing this edition of Instruments of the Money Market. These include Lawrence Aiken,
Federal Reserve Bank of New York; Keith Amburgey, International Swap Dealers Association; Albert C.
Bashawaty, Morgan Guaranty Trust Co.; Jackson L. Blanton, Federal Reserve Bank of Richmond; Richard
S. Cohen, Chase Manhattan Bank, N. A.; Jerome Fons, Moody's Investors Service; David Humphrey,
Florida State University; Ira G. Kawaller, Chicago Mercantile Exchange; Thomas A.
A final way banks raise funds in the money market is through repurchase agreements (RPs). An RP is a
sale of securities with a simultaneous agreement by the seller to repurchase them at a later date. (For the
lender—that is, the buyer of the securities in such a transaction—the agreement is often called a reverse
RP.) In effect this agreement (when properly executed) is a short-term collateralized loan. Most RPs involve
U.S. government securities or securities issued by government-sponsored enterprises. Banks are active
participants on the borrowing side of the RP market. ...
Even if this approach provides insights about potential target country markets, no information is provided on the
within-country consumers‘ heterogeneity and their response to marketing efforts. In this context it has to be stated
that the globalization of consumer markets and the global acceptance of products and brands lead to a
globalization of consumers‘ behaviors and attitudes.
Accompanied by guitar music composed by the Argentine Gustavo
Santaolalla – who is known for his film scores for Alejandro González Iñárritu –
it sets a quiet pace with a dreamlike quality. This quality is further enhanced by
the lack of any sounds from the environments shown in the images. As I have
noted elsewhere (Flückiger, 2001: 397) this absence of environmental sounds
marks a detachment of the character from the world he or she inhabits, be it
euphoric (as is often the case in American montage sequences) or dysphoric
(as in nightmares or borderline experiences)....