Does the euro make a difference? Spatio-temporal transmission of global shocks to real effective exchange rates in an infinite VAR

This paper provides evidence on whether the creation of the euro has changed the way global turbulences affect euro area and other economies. Specifically, it considers the impact of global shocks on the competitiveness of individual euro area countries and assesses whether their responses to such shocks have converged, as well as to what pattern. Technically, the paper applies a newly developed methodology based on infinite VAR theory featuring a dominant unit to a large set of over 60 countries' real effective exchange rates, including those of the individual euro area economies, and compares impulse response functions to the estimated systems before and after EMU with respect to three types of shocks: a global US dollar shock, generalised impulse response function shocks and a global shock to risk aversion. Our results show that the way euro area countries' real effective exchange rates adjust to these shocks has converged indeed, albeit to a pattern that depends crucially on the nature of the shock. This result is noteworthy given the apparent divergence in competitiveness indicators of these countries in the first ten years of EMU, which suggests that this diverging pattern is unlikely to be due to global external shocks with asymmetric effects but rather to other factors, such as country-specific domestic shocks. JEL Classification: C21, C23euro, High-Dimensional VAR, Identification of Shocks, Real Effective Exchange Rates, Weak and Strong Cross Sectional Dependence

Scaling laws for homogeneous turbulent shear flows in a rotating frame

The scaling properties of plane homogeneous turbulent shear flows in a rotating frame are examined mathematically by a direct analysis of the Navier-Stokes equations. It is proved that two such shear flows are dynamically similar if and only if their initial dimensionless energy spectrum E star (k star, 0), initial dimensionless shear rate SK sub 0/epsilon sub 0, initial Reynolds number K squared sub 0/nu epsilon sub 0, and the ration of the rotation rate to the shear rate omega/S are identical. Consequently, if universal equilibrium states exist, at high Reynolds numbers, they will only depend on the single parameter omega/S. The commonly assumed dependence of such equilibrium states on omega/S through the Richardson number Ri=-2(omega/S)(1-2 omega/S) is proven to be inconsistent with the full Navier-Stokes equations and to constitute no more than a weak approximation. To be more specific, Richardson number similarity is shown to only rigorously apply to certain low-order truncations of the Navier-Stokes equations (i.e., to certain second-order closure models) wherein closure is achieved at the second-moment level by assuming that the higher-order moments are a small perturbation of their isotropic states. The physical dependence of rotating turbulent shear flows on omega/S is discussed in detail along with the implications for turbulence modeling

Human Rights Violations After 9/11 and the Role of Constitutional Constraints

human rights, terrorism, 9/11, checks and balances, constitutions, constitutional courts

Have euro area and EU economic governance worked? Just the facts

We test whether two key elements of the EU and euro area economic governance framework, the Stability and Growth Pact and the Lisbon Strategy, have had any impact on macroeconomic outcomes. We test this proposition using a difference-in-difference approach on a panel of over 30 countries, some of which are non-EU (control group). Hence, the impact of the EU economic governance pillars is evaluated based on both the performance before and after their application as well as against the control group. We find strong and robust evidence that neither the Stability and Growth Pact nor the Lisbon Strategy have had a significant beneficial impact on fiscal and economic performance outcomes. We conclude that a profound reform of these pillars is needed to make them work in the next decade. JEL Classification: E62, E63, H63, O43euro area, European Union, governance, institutions, Lisbon Strategy, Stability and Growth Pact

Does Finance Bolster Superstar Companies? Banks, Venture Capital, and Firm Size in Local U.S. Markets

We study the relative effect of venture capital and bank finance on large manufacturing firms in local U.S. markets. Theory predicts that with venture capital, the firm size distribution should become more stretched-out to the right, but it’s ambiguous on the effect of banks on large firms. The empirical evidence suggests that while the average size of firms in the top bin of the firm size distribution has remained unaffected by banking sector developments, it has increased with venture capital investment. We argue that this is due to the emergence of new corporate giants rather than the growth of existing ones. JEL Classification: G24, J24, L11banking, firm size, Venture Capital

QAP Out: Why the Federal Government Should Require More from How States Allocate Low-Income Housing Tax Credits

Prohibitively high land acquisition and construction costs block affordable housing developers from using the Low-Income Housing Tax Credit program in high opportunity areas. Policymakers must study the history of housing policy in the United States and realize that the LIHTC program works because it suitably balances previously problematic private-market competition, federalism concerns, and compliance issues. Federal lawmakers can look to Qualified Allocation Plans drafted by individual states as a way to encourage the construction of affordable housing without upsetting this equilibrium. To encourage such development, the federal government can require states, in determining tax credit allocations through QAPs, to give preference to difficult development areas, high opportunity areas, or areas with less than 10% affordable housing stock

Three Essays on Behavioral and Applied Game Theory.

no abstract availableGame theory;

Experimental Study of Machine-Learning-Based Detection and Identification of Physical-Layer Attacks in Optical Networks

Optical networks are critical infrastructure supporting vital services and are vulnerable to different types of malicious attacks targeting service disruption at the optical layer. Due to the various attack techniques causing diverse physical- layer effects, as well as the limitations and sparse placement of optical performance monitoring devices, such attacks are difficult to detect, and their signatures are unknown. This paper presents a Machine Learning (ML) framework for detection and identification of physical-layer attacks, based on experimental attack traces from an operator field-deployed testbed with coherent receivers. We perform in-band and out-of-band jamming signal insertion attacks, as well as polarization modulation attacks, each with varying intensities. We then evaluate 8 different ML classifiers in terms of their accuracy, and scalability in processing experimental data. The optical parameters critical for accurate attack identification are identified and the generalization of the models is validated. Results indicate that Artificial Neural Networks (ANNs) achieve 99.9% accuracy in attack type and intensity classification, and are capable of processing 1 million samples in less than 10 seconds

The use of mobile technologies for learning in higher education: Students' readiness

A rapid evolution of technologies and their proliferation in the education system has created a new paradigm of learning with universities embarking on the integration of mobile technologies in higher education. As a result, mobile learning has emerged as a new way of learning. Mobile learning utilises mobile technologies such as smartphones, laptops, tablets and the Internet, allowing students to learn anywhere and access learning resources anytime. To ensure the successful implementation of mobile learning in higher education, it is imperative to understand students’ readiness for using mobile technologies to learn. This paper examines whether undergraduate students of a private university are ready to adapt to the mobility of learning through the use of mobile technologies. A quantitative research approach was adopted. Data was collected from a sample of 234 students of a private university using questionnaires. The descriptive statistics analysis shows that students were fairly comfortable (61.1%, M=3.17) with the use of mobile technologies for learning purposes (98.3%), specifically for accessing and downloading online journals (82.5%) and searching for information (82.1%). Most students somehow agreed that products and services that use technologies were much more convenient to use (M=3.75) and they were open to learning new and different technologies (M=3.71); however, students were only moderately ready for mobile learning if it is were to be implemented by their university (M=3.32). This study concludes that students are ready to use technology as they are fairly comfortable with the use of mobile technologies, yet they are only moderately ready to adopt M-Learning. However, despite demonstrating an interest towards mobile technologies used for learning, the students are still not quite ready to adopt M-Learning in higher education. The present study contributes to a growing body of empirical research about the mobile technologies used for learning in Malaysian higher education and recommends that the Ministry of Education assesses the prospect of applying mobile technologies for learning in higher education institutions