Estimating the Costs and Benefits of EMU: The Impact of External Shocks on Labour Markets

Discussions of the economic costs and benefits of EMU usually take as their basis the optimum currency area (OCA) approach. This approach starts from the premise that when an external shock hits the economy, it is easier to adjust the exchange rate than domestic prices or wages. Most economists accept the general idea behind this approach, namely that nominal wages are usually sticky in the shortrun and that it is therefore easier to adjust to external shocks and obtain changes in the real exchange rate or the terms of trade through a movement in the exchange rate. But there is little agreement on how important these "external" shocks are in reality. We try to measure the importance of external shocks for (un)employment. We find that external shocks have little impact on unemployment, but are more important in the evolution of employment in manufacturing. The results differ, however, strongly from country to country and for about half of EU member countries we did not find any significant relationship. Taking into account various potential shock absorbers (exchange rate movements, fiscal and monetary policy) does not affect the results. We conclude that the loss of the exchange rate instrument will not lead to massive unemployment problems.exchange rates;export demand;external shocks;optimal currency area;(un)employment

Exploration in Free Word Association Networks: Models and Experiment

Free association is a task that requires a subject to express the first word to come to their mind when presented with a certain cue. It is a task which can be used to expose the basic mechanisms by which humans connect memories. In this work we have made use of a publicly available database of free associations to model the exploration of the averaged network of associations using a statistical and the \emph{ACT-R} model. We performed, in addition, an online experiment asking participants to navigate the averaged network using their individual preferences for word associations. We have investigated the statistics of word repetitions in this guided association task. We find that the considered models mimic some of the statistical properties, viz the probability of word repetitions, the distance between repetitions and the distribution of association chain lengths, of the experiment, with the \emph{ACT-R} model showing a particularly good fit to the experimental data for the more intricate properties as, for instance, the ratio of repetitions per length of association chains.Comment: Cognitive Processing, in pres

Stochastic Cluster Series expansion for quantum spin systems

In this paper we develop a cluster-variant of the Stochastic Series expansion method (SCSE). For certain systems with longer-range interactions the SCSE is considerably more efficient than the standard implementation of the Stochastic Series Expansion (SSE), at low temperatures. As an application of this method we calculated the T=0-conductance for a linear chain with a (diagonal) next nearest neighbor interaction.Comment: 5 pages, 7 figure

Synthesis and Properties of Dipyridylcyclopentenes

A short and general route to the substituted dipyridylcyclopentenes was explored and several new compounds belonging to this new group of diarylethenes were synthesized. The study of their photochromic and thermochromic properties shows that the rate of the thermal ring opening is strongly dependent on the polarity of the solvent.

Quasiparticle spectral weights of Gutzwiller-projected high T_c superconductors

We analyze the electronic Green's functions in the superconducting ground state of the t-J model using Gutzwiller-projected wave functions, and compare them to the conventional BCS form. Some of the properties of the BCS state are preserved by the projection: the total spectral weight is continuous around the quasiparticle node and approximately constant along the Fermi surface. On the other hand, the overall spectral weight is reduced by the projection with a momentum-dependent renormalization, and the projection produces electron-hole asymmetry in renormalization of the electron and hole spectral weights. The latter asymmetry leads to the bending of the effective Fermi surface which we define as the locus of equal electron and hole spectral weight.Comment: 6 pages, 5 figures; x-labels on Figs. 1 and 2 corrected, footnote on particle number corrected, references adde

Exact Diagonalization Dynamical Mean Field Theory for Multi-Band Materials: Effect of Coulomb correlations on the Fermi surface of Na_0.3CoO_2

Dynamical mean field theory combined with finite-temperature exact diagonalization is shown to be a suitable method to study local Coulomb correlations in realistic multi-band materials. By making use of the sparseness of the impurity Hamiltonian, exact eigenstates can be evaluated for significantly larger clusters than in schemes based on full diagonalization. Since finite-size effects are greatly reduced this approach allows the study of three-band systems down to very low temperatures, for strong local Coulomb interactions and full Hund exchange. It is also shown that exact diagonalization yields smooth subband quasi-particle spectra and self-energies at real frequencies. As a first application the correlation induced charge transfer between t2g bands in Na_0.3CoO_2 is investigated. For both Hund and Ising exchange the small eg' Fermi surface hole pockets are found to be slightly enlarged compared to the non-interacting limit, in agreement with previous Quantum Monte Carlo dynamical mean field calculations for Ising exchange, but in conflict with photoemission data.Comment: 9 pages, 7 figure