One-Dimensional Fermi liquids

I attempt to give a pedagogical overview of the progress which has occurred during the past decade in the description of one-dimensional correlated fermions. Fermi liquid theory based on a quasi-particle picture, breaks down in one dimension because of the Peierls divergence and because of charge-spin separation. It is replaced by a Luttinger liquid whose elementary excitations are collective charge and spin modes, based on the exactly solvable Luttinger model. I review this model and various solutions with emphasis on bosonization (and its equivalence to conformal field theory), and its physical properties. The notion of a Luttinger liquid implies that all gapless 1D systems share these properties at low energies. Chapters 1 and 2 of the article contain an introduction and a discussion of the breakdown of Fermi liquid theory. Chapter 3 describes in detail the solution of the Luttinger model both by bosonization and by Green's functions methods and summarizes the properties of the model, expressed thorugh correlation functions. The relation to conformal field theory is discussed. Chapter 4 of the article introduces the notion of a Luttinger liquid. It describes in much detail the various mappings applied to realistic models of 1D correlated fermions, onto the Luttinger model, as well as important corrections to the Luttinger model properties discussed in Ch.3. Chapter 5 describes situations where the Luttinger liquid is not a stable fixed point, and where spin or charge gaps open in at least one channel. Chapter 6 discusses multi-band and multichain problems, in particular the stability of a Luttinger liquid with respect to interchain hopping. Ch. 7 gives a brief summary of experimental efforts to uncover Luttinger liquid correlations in quasi-1D materials.Comment: uuencoded Latex files and postscript figures, one Readme-file approx 160 pages + 13 figures; to be published by Reports on Progress in Physic

Use of the method of the stochastic trend for NAIRU estimation in the Czech Republic and Slovakia at the macro- and meso-levels

The article provides an analysis of the development of NAIRU and the economic cycle in the labour market at the level of the economy and in selected sectors in the Czech Republic and Slovakia. The analysis focuses on estimation of the time-varying NAIRU with the use of the method of the stochastic trend. The difference between the estimated NAIRU values and the real unemployment rates is used for characterisation of the economic cycle in the labour market. The estimated phases of the cycle are compared with the development of the basic real economy indicators. Unstable periods on the labour market in the economy and in selected sectors of the two countries are localised. The identified leading indicators are used for prediction of the development in the following period

The Motives and Impediments to FDI in the CIS

This paper examines the motives behind foreign direct investment (FDI) in a group of four CIS countries (Ukraine, Moldova, Georgia and Kyrgyzstan) based on a survey of 120 enterprises. The results indicate that non-oil multi-national enterprises (MNEs) are predominantly oriented at serving local markets. Most MNEs in the CIS operate as 'isolated players', maintaining strong links to their parent companies, while minimally cooperating with local CIS firms. The surveyed firms secure the majority of supplies from international sources. For this reason, the possibility for spillovers arising from cooperation with foreign-owned firms in the CIS is rather low at this time. The lack of efficiency-seeking investment poses further concern regarding the nature of FDI in the region. The most significant problems identified in the daily operations of the surveyed foreign firms are: the volatility of the political and economic environment, the ambiguity of the legal system and the high levels of corruption

Ancestry, Diversity & Finance: Evidence from Transition Economies

In this paper, we analyze the growth effects of historical and biological ancestry, diversity and financial development in transition economies. We show that the common indicators of ethnolinguistic fractionalization, state history and genetic distance yield significant results and to some extent transform the impact of finance on growth in East-Central Europe and the former Soviet Union. Deep ethnolinguistic cleavages produce insignificant results, whereas at intermediate and lower levels of aggregation diversity is likely to significantly improve the effect of finance on growth. Similarly to finer ethnolinguistic cleavages, genetic distance from the United States also favorably increases the relevance of financial development for growth. However, state history as a proxy for long-run ancestral exposure to institutions, political organization and centralization reinforces the negative growth effect of financial development. We argue that financial development is inclined to resolve problems arising from coordination failures and absence of trust in diverse societies by easing liquidity constraints and offering incentives for entrepreneurship to minority groups. In contrast, long state history is likely to generate extractive institutions that facilitate the provision of soft budget constraints. Genetic distance from the United States induces higher reliance on continental rather than Anglo-Saxon financing practices, and therefore increases dependence on banks rather than bonds or equity for external liquidity purposes