Structural estimates of equilibrium unemployment in six OECD economies

In Europe, neither unemployment rates nor institutions are uniform. In the EMU, countries have coordinated their monetary policy, and fiscal policy might follow. Does convergence in fiscal policy imply that unemployment rates will converge, too, or is diversified fiscal policy desirable? An answer to this question requires insight into the dependence on fiscal policy of the unemployment rate in equilibrium. This study estimates the equilibrium rate of unemployment and shows that it has been affected significantly by taxes and benefits. Uniform fiscal policy would not, however, harmonise the unemployment rates because the impact of policy varies widely across the OECD economies.

New Economic Geography, Empirics, and Regional Policy

There are doubts about the effectiveness of regional policy. Well known are the vain attempts of Italy to bridge the gap between the Mezzogiorno and the North, of Germany to bridge the gap between the Neue Länder and the West, and of the European Commission to reduce regional disparities in general. We validate a salient explanation for the lack of effectiveness: agglomeration advantages lock business activity in relatively prosperous core regions, even though wages and production costs tend to be higher there. On the basis of the `New Economic Geography' - a set of general equilibrium models that focus on location choice - in combination with descriptive statistics and econometric analysis, we conclude that the European economic geography is characterized by a network of local and stable core-periphery systems. Since regional policy tend to be insufficient to counter centripetal market forces, disparities between cores and their peripheries at a subprovincial level of regional aggregation are with us to stay. Moreover, if regional policy does have an impact, it may be adverse as some policies targeted on peripheral regions trigger location choices in favour of core regions.

Documentation of CORTAX

CORTAX is applied in Bettendorf et al. (2006), a simulation study on the economic and welfare implications of reforms in corporate income taxation. This technical documentation of the model consists of the derivation and listing of the equations of the model and a justification of the calibration.

Applying revenue management to agent-based transportation planning

We consider a multi-company, less-than-truckload, dynamic VRP based on the concept of multi-agent systems. We focus on the intelligence of one vehicle agent and especially on its bidding strategy. We address the problem how to price loads that are offered in real-time such that available capacity is used in the most profitable way taking into account possible future revenues. We develop methods to price loads dynamically based on revenue management concepts.\ud We consider a one leg problem, i.e., a vehicle travels from i to j and can wait at most τ time units in which it can get additional loads from i to j. We develop a DP to price loads given a certain amount of remaining capacity and an expected number of auctions in the time-to-go. Because a DP might be impractical if parameters change frequently and bids has to be determined in real-time, we derived two approximations to speed up calculations. The performance of these approximations are compared with the performance of the DP. Besides we introduce a new measure to calculate the average vehicle utilisation in consolidated shipments. This measure can be calculated based on a limited amount of data and gives an indication of the efficiency of schedules and the performance of vehicles

Customer flow, intermediaries, and the discovery of the equilibrium riskfree rate

Macro announcements change the equilibrium riskfree rate. We find that treasury prices reflect part of the impact instantaneously, but intermediaries rely on their customer order flow in the 15 minutes after the announcement to discover the full impact. We show that this customer flow informativeness is strongest at times when analyst forecasts of macro variables are highly dispersed. We study 30 year treasury futures to identify the customer flow. We further show that intermediaries appear to benefit from privately recognizing informed customer flow, as, in the cross-section, their own-account trade profitability correlates with access to customer orders, controlling for volatility, competition, and the announcement surprise. These results suggest that intermediaries learn about equilibrium riskfree rates through customer orders

Innovation policy; Europe or the member states?

Innovation seldom has purely domestic causes and consequences, but how can a European innovation policy complement or substitute national policies? Taking the subsidiarity principle as a starting point, this report discusses the economic rationale of a European innovation policy. Explorative empirical analysis suggests that public R&D and public funding of private R&D are subject to economies of scale and external effects. This is an argument in favour of a European innovation policy but amongst other things, the heterogeneity in social economic objectives on public R&D spending between Member States pleas for national government involvement. In addition, there are scale economies in the protection of intellectual property and in the development of standards. We conclude that a European innovation policy could have, or already has, substantial benefits over purely national policy in these areas. With respect to innovation policies targeted at SMEs, we do not find economies of scale or external effects. It seems to be efficient that these policies are mainly conducted at the national level.

Who benefits from tax competition in the European Union?

Statutory tax rates have declined in the European Union in the recent decades. An applied general equilibrium model on corporate taxation sheds light on the economic and welfare implications of tax rate reforms. Domestic distortions proof highly relevant as even unilateral reductions of the corporate income tax rate might reduce welfare if the labour tax rate has to be increased. Profit shifting induces countries to underbid each others tax rates, but this effect is sizable only if two countries are closely linked. The harmful external effects of CIT rate reductions are limited, which reduces the need for European coordination of CIT rates.

BUDGET PERSPECTIVES 2008. IS EU COORDINATION NEEDED FOR CORPORATE TAXATION?

Should EU-member states give up their rights to design their own corporate income tax? Currently, member states are free to set their tax rates and are allowed to design their tax base as long as it does not constitute harmful tax competition. This is regulated in the Code of Conduct, which is not a legally binding instrument but does have political force. By adopting this Code, the member states have undertaken to roll back existing tax measures that constitute harmful tax competition and refrain from introducing any such measures in the future

Towards an Architecture for Semiautonomous Robot Telecontrol Systems.

The design and development of a computational system to support robot–operator collaboration is a challenging task, not only because of the overall system complexity, but furthermore because of the involvement of different technical and scientific disciplines, namely, Software Engineering, Psychology and Artificial Intelligence, among others. In our opinion the approach generally used to face this type of project is based on system architectures inherited from the development of autonomous robots and therefore fails to incorporate explicitly the role of the operator, i.e. these architectures lack a view that help the operator to see him/herself as an integral part of the system. The goal of this paper is to provide a human-centered paradigm that makes it possible to create this kind of view of the system architecture. This architectural description includes the definition of the role of operator and autonomous behaviour of the robot, it identifies the shared knowledge, and it helps the operator to see the robot as an intentional being as himself/herself

Midrash and exegesis – distant neighbours?

The term Midrash should be reserved for the specific quotation literature of the rabbinic sources of classical Judaism. Decisive is its literary form: the combination of rabbinic statement and biblical quotation. All other rabbinic and non-rabbinic texts should better not be called Midrash. Great caution is needed in the use of the term exegesis in relation to Midrash. For the modern mind exegesis is something connected with critical philology and history. In principle Midrash is something completely different and could more aptly be called ‘a kind of theology’ than the usual designation as ‘a kind of exegesis’. In fact, the association of Midrash with exegesis implies a great injustice towards Midrash. Despite all appearances, Midrash is not exegesis, nor a ‘kind of exegesis’, although it does contain elements of biblical exegesis. Although Midrash has certainly played a role in the origin and history of modern biblical exegesis, this particular role is a matter of the past. The relation between Midrash and modern exegesis now has become merely platonic, a source of inspiration and, possibly, admiration as an example of textual sensitivity&&as a vehicle of rabbinic theology&&and – eventually – as a model for a new post-modern system of hermeneutics