Sunspots and monetary policy

A monetary economy subject to expectational sunspots is prone to instability, in the sense of multiple rational expectations equilibria. We show how to modify the policy rule to guarantee stability in the presence of expectational sunspots. The policy-maker must co-ordinate in ation dynamics by targeting each of lagged, current and expected in ation. We show that this solution maps directly into the timeless perspective by Woodford. Finally, we trace the responses in an arti cial sunspot economy to the adoption of our rule and illustrate the extent to which macroeconomic persistence is reduced

How Close are the Edges of a Closed Fracture?

A laboratory experiment is peresented where the theory of amplitude reflection tuning in thin beds is tested. The results show a very good agreement with the theory previsio

Decomposition of productivity and unit costs

Labor productivity

Identification Strategies in Survey Response Using Vignettes

In this paper we explore solutions to a particular type of heterogeneity in survey data which is manifest in the presence of individual-specific response scales. We consider this problem in the context of existing evidence on cross-country differences in subjective life satisfaction, and in particular the extent of cross-country comparability. In this instance observed responses are not directly comparable, and inference is compromised. We utilise two broad identification strategies to account for scale heterogeneity. Keeping the data fixed, we consider a number of estimators based on alternative generalisations of the ordered response model. We also examine a number of alternative approaches based on the use of additional information in the form of responses on one or more additional questions with the same response categories as the self-assessment question. These additional questions, referred to as anchoring vignettes, can under certain conditions, be used to correct for the resultant biases in model parameters

Tests for Convergence Clubs

In many applications common in testing for convergence the number of cross-sectional units is large and the number of time periods are few. In these situations tests which are founded upon an omnibus null hypothesis are characterised by a number of problems. In this paper we consider a broad class of tests of convergence based on multivariate time series and panel data methodologies, and track a gradual progression away from tests based on an omnibus null, to sequential tests and tests that are founded upon multiple pairwise comparisons. In a previous study Corrado, Martin and Weeks (2005) test for regional convergence across the European Union allowing for an endogenous selection of regional clusters using a multivariate test for stationarity. Given that the time series are relatively short, there are potential problems in basing inference on asymptotic results for stationarity tests. To circumvent this problem we bootstrap the stationarity test and explore the robustness of the cluster outcomes. In general our results show that the size distortion which a icts the asymptotic tests, and resulting in a bias towards nding less convergence, is resolved when we apply the bootstrap generated critical values. To interpret the composition of the resulting convergence clusters, the latter are tested against a variety of possible groupings suggested by recent theories and hypotheses of regional growth and convergence

The nebulae around LBVs: a multiwavelength approach

We present first results of our study of a sample of Galactic LBV, aimed to contribute to a better understanding of the LBV phenomenon, by recovering the mass-loss history of the central object from the analysis of its associated nebula. Mass-loss properties have been derived by a synergistic use of different techniques, at different wavelengths, to obtain high-resolution, multi-wavelength maps, tracing the different emitting components coexisting in the stellar ejecta: the ionized/neutral gas and the dust. Evidence for asymmetric mass-loss and observational evidence of possible mutual interaction between gas and dust components have been observed by the comparison of mid-IR (Spitzer/IRAC, VLT/VISIR) and radio (VLA) images of the nebulae, while important information on the gas and dust composition have been derived from Spitzer/IRS spectra.Comment: 5 pages, 4 figures. To appear in proceedings of 39th Liege International Astrophysical Colloquium: The multi-wavelength view of Hot, Massive Star

Cap rock efficiency of geothermal systems in fold-and-thrust belts: Evidence from paleo-thermal and structural analyses in Rosario de La Frontera geothermal area (NW Argentina)

Cap rock characterization of geothermal systems is often neglected despite fracturing may reduce its efficiency and favours fluid migration. We investigated the siliciclastic cap rock of Rosario de La Frontera geothermal system (NW Argentina) in order to assess its quality as a function of fracture patterns and related thermal alteration. Paleothermal investigations (XRD on fine-grained fraction of sediments, organic matter optical analysis and fluid inclusions on veins) and 1D thermal modelling allowed us to distinguish the thermal fingerprint associated to sedimentary burial from that related to fluid migration. The geothermal system is hosted in a Neogene N-S anticline dissected by high angle NNW- and ENE-striking faults. Its cap rock can be grouped into two quality categories: • rocks acting as good insulators, deformed by NNW–SSE and E–W shear fractures, NNE-SSW gypsum- and N-S-striking calcite-filled veins that developed during the initial stage of anticline growth. Maximum paleo-temperatures (< 60 °C) were experienced during deposition to folding phases.• rocks acting as bad insulators, deformed by NNW-SSE fault planes and NNW- and WNW-striking sets of fractures associated to late transpressive kinematics. Maximum paleo-temperatures higher than about 115 °C are linked to fluid migration from the reservoir to surface (with a reservoir top at maximum depths of 2.5 km) along fault damage zones.This multi-method approach turned out to be particularly useful to trace the main pathways of hot fluids and can be applied in blind geothermal systems where either subsurface data are scarce or surface thermal anomalies are lacking.Fil: Maffucci, R.. Universita Degli Studi Della Tuscia; Italia. Universita Degli Studi Roma Tre; ItaliaFil: Corrado, Sveva. Universita Degli Studi Roma Tre; ItaliaFil: Aldega, L.. Instituto de Investigaciones Universitarias Roma la Sapienza; ItaliaFil: Bigi, S.. Instituto de Investigaciones Universitarias Roma la Sapienza; ItaliaFil: Chiodi, Agostina Laura. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Salta. Instituto de Investigaciones en Energía no Convencional. Universidad Nacional de Salta. Facultad de Ciencias Exactas. Departamento de Física. Instituto de Investigaciones en Energía no Convencional; ArgentinaFil: Di Paolo, L.. Eni E&P Division; ItaliaFil: Giordano, G.. Universita Degli Studi Roma Tre; ItaliaFil: Invernizzi, C.. Universita Degli Di Camerino; Itali

Persistent Habits, optimal Monetary Policy Inertia and Interest Rate Smoothing

Dynamic stochastic general equilibrium models featuring imperfect competition and nominal rigidities have become central for the analysis of the monetary transmission mechanism and for understanding the conduct of monetary policy. However, it is agreed that the benchmark model fails to generate the persistence of output and inflation that is observed in the data. Moreover, it cannot provide a theoretically well-grounded justification for the interest rate smoothing behaviour of monetary authorities. This paper attempts to overcome these deficiencies by embedding a multiplicative habit specification in a New Keynesian model. We show that this particular form of habit formation can explain why monetary authorities smooth interest rates