Traded and nontraded good prices, and international risk sharing : an empirical investigation

Accounting for the pervasive evidence of limited international risk sharing is an important hurdle for open-economy models, especially when these are adopted in the analysis of policy trade-offs likely to be affected by imperfections in fi nancial markets. Key to the literature is the evidence, at odds with effi ciency, that consumption is relatively high in countries where its international relative price (the real exchange rate) is also high. We reconsider the relation between cross-country consumption differentials and real exchange rates, by decomposing it into two components, refl ecting the prices of tradable and nontradable goods, respectively. We document that, as a common pattern among OECD countries, both components tend to contribute to the overall lack of risk sharing, with the tradable price component playing the dominant role in accounting for effi ciency deviations. We relate these fi ndings to two mechanisms proposed by the literature to reconcile open economy models with the data. One features strong Balassa-Samuelson effects on nontradable prices due to productivity gains in the tradable sector, with a muted offsetting response of tradable prices. The other, endogenous income effects causing nontradable but especially tradable prices to appreciate with a rise in domestic consumption demandDar cuenta de la clara evidencia de una limitada diversificación del riesgo internacional es un reto importante para los modelos de economía abierta, sobre todo cuando estos se adoptan en el análisis de políticas que puedan resultar afectadas por imperfecciones en los mercados financieros. Fundamental en la literatura es la evidencia, contraria a la eficiencia, que el consumo es relativamente alto en los países en los que su precio relativo internacional (el tipo de cambio real) también es alto. En este papel reconsideramos la relación entre los diferenciales de consumo entre países y los tipos de cambio reales, descomponiéndola en dos factores que reflejan, respectivamente, los precios de los bienes comerciables y no comerciables. Documentamos que, en un patrón común entre los países de la OCDE, los dos componentes contribuyen a la falta general de diversifi cación del riesgo. El factor de precios de bienes comerciables juega un papel dominante en la explicación de las desviaciones de la eficiencia. Relacionamos estos resultados con dos mecanismos propuestos por la literatura para reconciliar los modelos de economía abierta con los datos. Un mecanismo actúa a través de fuertes efectos Balassa-Samuelson sobre los precios de los bienes no comerciables debidos a aumentos de productividad en el sector de comerciables, con un débil efecto compensatorio de los precios de bienes comerciables. El otro mecanismo actúa a través de efectos riqueza endógenos que aprecian los precios de bienes no comerciables y especialmente los precios de comerciables debido a un aumento de la demanda del consumo intern

Traded and Nontraded Goods Prices, and International Risk Sharing: an Empirical Investigation.

Accounting for the pervasive evidence of limited international risk sharing is an important hurdle for open-economy models, especially when these are adopted in the analysis of policy trade-offs likely to be affected by imperfections in financial markets. Key to the literature is the evidence, at odds with efficiency, that consumption is relatively high in countries where its international relative price (the real exchange rate) is also high. We reconsider the relation between cross-country consumption differentials and real exchange rates, by decomposing it into two components, reflecting the prices of tradable and nontradable goods, respectively. We document that, as a common pattern among OECD countries, both components tend to contribute to the overall lack of risk sharing, with the tradable price component playing the dominant role in accounting for efficiency deviations. We relate these findings to two mechanisms proposed by the literature to reconcile open economy models with the data. One features strong Balassa-Samuelson effects on nontradable prices due to productivity gains in the tradable sector, with a muted offsetting response of tradable prices. The other, endogenous income effects causing nontradable but especially tradable prices to appreciate with a rise in domestic consumption demand.

Ultrasound Stimulations Induce Prolonged Depolarization and Fast Action Potentials in Leech Neurons

Objective: Ultrasound (US) stimulation carries the promise of a selective, reversible, and non-invasive modulation of neural activity without the need for genetic manipulation of neural structures. However, the mechanisms of US-induced generation of action potentials (APs) are still unclear. Methods: Here we address this issue by analyzing intracellularly recorded responses of leech nociceptive neurons to controlled delivery of US. Results: US induced a depolarization linearly accumulating in time and outlasting the duration of the stimulation. Spiking activity was reliably induced for an optimal US intensity range. Moreover, we found that APs induced by US differ in smaller amplitude and faster repolarization from those induced by electrical stimulation in the same cell but display the same repolarization rate. Conclusions: These results shed light on the mechanism by which spikes are induced by US and pave the way for designing more efficient US stimulation patterns

Validation and Verification of High-Fidelity Simulations of Thoracic Stent-Graft Implantation

Thoracic Endovascular Aortic Repair (TEVAR) is the preferred treatment option for thoracic aortic pathologies and consists of inserting a self-expandable stent-graft into the pathological region to restore the lumen. Computational models play a significant role in procedural planning and must be reliable. For this reason, in this work, high-fidelity Finite Element (FE) simulations are developed to model thoracic stent-grafts. Experimental crimp/release tests are performed to calibrate stent-grafts material parameters. Stent pre-stress is included in the stent-graft model. A new methodology for replicating device insertion and deployment with explicit FE simulations is proposed. To validate this simulation, the stent-graft is experimentally released into a 3D rigid aortic phantom with physiological anatomy and inspected in a computed tomography (CT) scan at different time points during deployment with an ad-hoc set-up. A verification analysis of the adopted modeling features compared to the literature is performed. With the proposed methodology the error with respect to the CT is on average 0.92 +/- 0.64%, while it is higher when literature models are adopted (on average 4.77 +/- 1.83%). The presented FE tool is versatile and customizable for different commercial devices and applicable to patient-specific analyses

The International Risk-Sharing Puzzle is at Business Cycle and Lower Frequency

We decompose the Backus-Smith [1993] statistic --- a low or negative correlation between relative consumption and the real exchange rate at odds with a high degree of international risk sharing --- in its dynamic components at different frequencies. Using multivariate spectral analysis techniques we show that, in most OECD countries, the dynamic correlation tends to be more negative, and significantly so, at business cycle or lower frequencies --- the appropriate frequencies for assessing the performance of international business cycle models. Theoretically, we show that the dynamic correlation predicted by standard open-economy models is the sum of two terms: a term constant across frequencies, which can be negative as a function of uninsurable risk; a term variable across frequencies, which in bond economies is necessarily positive, reflecting the insurance intertemporal trade provides against forecastable contingencies. We show that the main mechanisms proposed in the literature to account for the puzzle are consistent with the evidence.Incomplete markets; International Risk-Sharing; Spectral Analysis

Traded and nontraded goods prices, and international risk sharing: an empirical investigation

Accounting for the pervasive evidence of limited international risk sharing is an important hurdle for open-economy models, especially when these are adopted in the analysis of policy trade-offs likely to be affected by imperfections in financial markets. Key to the literature is the evidence, at odds with efficiency, that consumption is relatively high in countries where its international relative price (the real exchange rate) is also high. We reconsider the relation between cross-country consumption differentials and real exchange rates, by decomposing it into two components, reflecting the prices of tradable and nontradable goods, respectively. We document that, as a common pattern among OECD countries, both components tend to contribute to the overall lack of risk sharing, with the tradable price component playing the dominant role in accounting for efficiency deviations. We relate these findings to two mechanisms proposed by the literature to reconcile open economy models with the data. One features strong Balassa-Samuelson effects on nontradable prices due to productivity gains in the tradable sector, with a muted offsetting response of tradable prices. The other, endogenous income effects causing nontradable but especially tradable prices to appreciate with a rise in domestic consumption demand.consumption-real exchange rate anomaly; Harrod-Balassa-Samuelson effect; incomplete markets; international transmission mechanism; terms of trade

Fatal protothecosis in four dogs with large bowel disease in Italy

Protothecosis occurs sporadically in dogs around the world, with few cases documented in Europe. Protothecosis causes infection of the large bowel, central nervous system and eyes. It is progressive and has a poor prognosis. We describe dogs affected by protothecosis in Italy and review the current literature. Clinical and laboratory data and information on the treatment and survival of dogs affected by protothecosis and diagnosed between 2009 and 2011 in the western part of the Po river basin in North- West Italy were collected from medical records. PCR analysis of biopsy specimens was used to identify the Prototheca species. Four dogs were included. They were adult and of medium-large breeds, including two Boxers. Complaints at presentation were large bowel diarrhoea, haematochezia and weight loss. Infection was associated with unspecific laboratory and instrumental abnormalities. All dogs had progressive disease despite treatment with itraconazol, antibiotics and corticosteroids. Two dogs developed uveitis and another developed clinical signs of the central nervous system

Molecular analysis of carnivore Protoparvovirus detected in white blood cells of naturally infected cats

Abstract Background Cats are susceptible to feline panleukopenia virus (FPV) and canine parvovirus (CPV) variants 2a, 2b and 2c. Detection of FPV and CPV variants in apparently healthy cats and their persistence in white blood cells (WBC) and other tissues when neutralising antibodies are simultaneously present, suggest that parvovirus may persist long-term in the tissues of cats post-infection without causing clinical signs. The aim of this study was to screen a population of 54 cats from Sardinia (Italy) for the presence of both FPV and CPV DNA within buffy coat samples using polymerase chain reaction (PCR). The DNA viral load, genetic diversity, phylogeny and antibody titres against parvoviruses were investigated in the positive cats. Results Carnivore protoparvovirus 1 DNA was detected in nine cats (16.7%). Viral DNA was reassembled to FPV in four cats and to CPV (CPV-2b and 2c) in four cats; one subject showed an unusually high genetic complexity with mixed infection involving FPV and CPV-2c. Antibodies against parvovirus were detected in all subjects which tested positive to DNA parvoviruses. Conclusions The identification of FPV and CPV DNA in the WBC of asymptomatic cats, despite the presence of specific antibodies against parvoviruses, and the high genetic heterogeneity detected in one sample, confirmed the relevant epidemiological role of cats in parvovirus infection