A Search Model with a Quasi-Network

In a standard search model the expected duration of unemployment is independent of the duration of previous employment, as well as of the current length of the unemployment spell. This paper offers a network mechanism to generate these correlations. Here, employed workers invest in social contacts with other employed workers, which will help them find jobs in the event of unemployment. These social contacts "depreciate" because they can also become unemployed and unemployed contacts are assumed to be useless. In this model the longer you have been working, the more contacts you are likely to have, and the more contacts you have the shorter your expected unemployment duration will be. The model is a simple and tractable way of introducing network ideas in one of the workhorses of labour and macroeconomics. The model also suggests that networks are less productive during periods of high unemployment, mainly because high unemployment destroys part of the network. In addition, the model provides guidance for indirect inference of network effects from the data.

Can we identify the relative price between consumption and investment?

This paper considers various AK models to investigate inference about the relative price between consumption and investment using NIPA data. We find, that depending on the model used, we can legitimately generate different time series for this price. If we successfully construct a falling price of investment, the model implies an inadmissibly low share of consumption in output. If we use an admissible share of consumption we generate investment prices which increase over time, contrary to the intuition generated by the price of equipment goods.

Financial Intermediation and The Great Depression: A Multiple Equilibrium Interpretation

This paper explores the behavior of the U.S. economy during the interwar period from the perspective of a model in which the existence of non-convexities in the intermediation process gives rise to a multiplicity of equilibria. The resulting indeterminancy is resolved through a sunspot process which leads to endogenous fluctuations in aggregate economic activity. From this perspective, the Depression period is represented as a regime shift associated with a financial crisis. Our model economy has properties which are broadly consistent with observations over the interwar period. Contrary to observation, the model predicts a negative correlation of consumption and investment as well as a highly volatile capital stock. Our model of financial crisis reproduces many aspects of the Great Depression though the model predicts a much sharper fall in investment than is observed in the data. Modifications to our model (adding durable goods and a capacity utilization choice) do not overcome these deficiencies.

Exhuming Q: market power capital market imperfections

Evidence of the statistical significance of profits in Q regressions remains one of the principal findings in the empirical investment literature. This result is frequently taken to support the view that capital market imperfections are an important element for understanding investment. This paper challenges that conclusion. We argue that allowing the profit function at the firm level to be strictly concave, reflecting, for example, market power, is sufficient to replicate the Q theory based regression results in which profits are a significant factor determining investment. To be clear, our ability to replicate the existing results does not require the specification of any capital market imperfections. Thus the friction that explains the statistical significance of profits could be market power by sellers rather than capital market imperfections.Capital investments ; Corporate profits ; Regression analysis

Evaluating the Economic Cost of Strategic Storage of Natural Gas

The European Commission wants to implement a single market for gas. One of the components of this market is a regulated provision for "security of supply" which consists of rules for the implementation and use of a given reserve stock of gas. We investigate the impact of this policy on the profitability of a storage operator, using data from Denmark and Italy. Keeping storage capacity constant, the costs of the strategic stock are around 20% of the value of the storage market for Denmark, and 16% for Italy. This cost is due to the inability to extract arbitrage profits from the captive stock.

Neoclassical Investment with Moral Hazard

This paper takes the neo classical model of the investment decision of the firm and adds a Moral Hazard problem to it. The Moral Hazard problem, which arises due to the separation between ownership and control, induces empirical results from sample splits, which are usually interpreted as a sign of financial constraints. These results are a consequence of the departure from the benchmark linear framework of the Neoclassical model. In short, curvature can be a result of either adjustment costs, credit constraints, or of a Moral Hazard problem if the manager has a concave utility function. In addition, the Moral Hazard problem is greatly exacerbated in the presence of a compensation structure with limited liability. This induces volatility in the firm, and depending on the model parameters can generate large losses for the firm coupled with generous compensation outcomes for management.

A Search Model with a Quasi-Network

This paper adds a quasi-network to a search model of the labor market. Fitting the model to an average unemployment rate and to other moments in the data implies the presence of the network is not noticeable in the basic properties of the unemployment and job finding rates. However, the network creates downward sloping reemployment hazards which the basic model does not, and under increasing network returns these hazards are significantly convex as we see in the data. Going into more detail we find that the network gets partially destroyed in periods of high unemployment and generates less job creation per link, while at the same time the jobs it does create, it does so with fewer links.duration; networks; search; unemployment

Inclusión y niveles de respuesta en la Comunidad Valenciana: dos casos prácticos

Treball Final de Grau en Mestre o Mestra d'Educació Primària. Codi: MP1040. Curs acadèmic: 2018/2019El presente trabajo de investigación tiene como principal objetivo el análisis del papel que están desarrollando las leyes educativas en la actualidad de acuerdo a la inclusión en la Comunidad Valenciana. Por una parte, se expone el conflicto social respecto a la educación inclusiva que existe en España y Europa y sus causas. Por otro lado, se analizan conceptos y documentos relacionados con la educación inclusiva y la normativa actual en España y la Comunidad Valenciana. Como consecuencia de esta investigación, se lleva a cabo una propuesta de intervención educativa donde se establecen los principios y las actuaciones encaminadas al desarrollo de un modelo inclusivo en el sistema educativo valenciano y se regula la organización para dar respuesta al alumnado con necesidades educativas específicas, basándose en los niveles de respuesta que se proponen aplicados a dos casos prácticos. Por último, se desarrollan las diferencias entre los niveles de respuesta de estos dos casos prácticos y las dificultades y beneficios que pueden presentarse en la aplicación de un sistema educativo realmente inclusivo.The main objective of this research is analyzing the role that educational laws are currently developing according to inclusion in the Valencian Community. On the one hand, it exposes the social conflict regarding inclusive education that exists in Spain and Europe and its causes. On the other hand, concepts and documents related to inclusive education and the current regulations in Spain and the Valencian Community are analyzed. As a consequence of this research, a proposal of educational intervention is carried out where the principles and actions aimed at the development of an inclusive model in the Valencian education system is established. The organization is regulated to respond to students with specific educational needs. based on the response levels that are proposed applied to two practical cases. Finally, the differences between the response levels of these two practical cases and the difficulties and benefits that may arise in the application of a truly inclusive educational system are developed

More Lessons from Taking an AK Model to the Data.

We take an AK model to the PWT data. In the model both technology (intratemporal) and investment (intertemporal) shocks determine the variation of the growth rate. In earlier work we looked at singular models where we extracted only the technology shock using the policy functions from dynamic optimality. Here we recover time series for both shocks for a panel of countries and we isolate what we believe are pervasive patterns in macroeconomic models and postwar data: a negative correlation between intra and intertemporal shocks, and a somewhat lesser role for the intertemporal shock.endogenous growth; technology shocks; investment shocks

Exhuming Q: Market Power vs. Capital Market Imperfections

Evidence of the statistical significance of profits in Q regressions remains one of the principal findings in the empirical investment literature. This result is frequently taken to support the view that capital market imperfections are an important element for understanding investment. This paper challenges that conclusion. We argue that allowing the profit function at the firm level to be strictly concave, reflecting, for example, market power, is sucent to replicate the Q theory based regression results in which profits are a significant factor determining investment. To be clear, our ability to replicate the existing results does not require the specification of any capital market imperfections. Thus the friction that explains the statistical significance of profits could be market power by sellers rather than capital market imperfections.