Exact Limit of the Expected Periodogram in the Unit-Root case

We derive the limit of the expected periodogram in the unit-root case under general conditions. This function is seen to be independent of time, thus sharing a fundamental property with the stationary case equivalent. We discuss the consequences of this result to the frequency domain interpretation of filtered integrated time series.

Exact Limit of the Expected Periodogram in the Unit-Root Case

We derive the limit of the expected periodogram in the unit-root case under general conditions. This function is seen to be time-independent, thus sharing a fundamental property with the stationary case equivalent. We discuss the consequences of this result to the frequency domain interpretation of filtered integrated time series.Periodogram, Unit root

A Multivariate Band-Pass Filter

We develop a multivariate filter which is an optimal (in the mean squared error sense) approximation to the ideal filter that isolates a specified range of fluctuations in a time series, e.g., business cycle fluctuations in macroeconomic time series. This requires knowledge of the true second-order moments of the data. Otherwise these can be estimated and we show empirically that the method still leads to relevant improvements of the extracted signal, especially in the endpoints of the sample. Our filter is an extension of the univariate filter developed by Christiano and Fitzgerald (2003). Specifically, we allow an arbitrary number of covariates to be employed in the estimation of the signal. We illustrate the application of the filter by constructing a business cycle indicator for the U.S. economy. The filter can additionally be used in any similar signal extraction problem demanding accurate real-time estimates.

A Multivariate Band-Pass Filter

We develop a multivariate filter which is an optimal (in the mean squared error sense) approximation to the ideal filter that isolates a specified range of fluctuations in a time series, e.g., business cycle fluctuations in macroeconomic time series. This requires knowledge of the true second-order moments of the data. Otherwise these can be estimated and we show empirically that the method still leads to relevant improvements of the extracted signal, especially in the endpoints of the sample. Our filter is an extension of the univariate filter developed by Christiano and Fitzgerald (2003). Specifically, we allow an arbitrary number of covariates to be employed in the estimation of the signal. We illustrate the application of the filter by constructing a business cycle indicator for the U.S. economy. The filter can additionally be used in any similar signal extraction problem demanding accurate real-time estimates.

Environmental Regulation and Technological Innovation with Spillovers

We present a two-period dynamic model of standard setting under asymmetric information to model the attempts by the Califormia Air Resources Board (CARB) in getting car manufacturers to comply with its phase-in of stringent emissions standards. After CARB chooses an initial emissions standard that ?rms are required to comply with, automakers respond by choosing R&D investment and production levels which provide CARB an imperfect signal whether they are more or less capable of complying with the standard. CARB resets the environmental standard and the ?rms once again choose research and production levels. Firms are Cournot duopolists in the product market and can choose to do research noncooperatively or cooperatively in the presence of spillovers. We show that ?rms will behave strategically and underinvest in research both under competitive and cooperative R&D, though the level of underinvestment — the ratchet effect — is greater under cooperative R&D when spillovers are large. We uncover a fundamental con?ict between the incentives of ?rms to do cooperative research and social welfare: that ?rms will want to engage in cooperative (resp. noncooperative) R&D only when spillovers are low (resp. high) while social welfare is greater under noncooperative (resp. cooperative) research.Car emissions; dynamic technology-forcing regulation; selfregulation; pre-commitment; cooperative R&D; ratchet effect.

Linking plant composition and arthropod abundance to establish little bustard breeding requirements in pastureland dominated landscapes

Most research on steppe bird habitat selection has been focused on the effects of management regimes or vegetation structure. However, much less is known on how plant composition is related with steppe bird occurrence. We investigated microhabitat of little bustard territorial males and females during the nesting and chick-rearing season in areas with dominance of pastureland focusing on plant composition. We searched for relationships between preferred vegetation and arthropod abundance in order to identify the contribution of different vegetation typologies in providing essential trophic resources for the species. Surveys of little bustards were made using car and foot transects. Plant composition was obtained within a 50 × 50 cm square at four sampling replicates and arthropod availability was sampled using a sweep net. Statistical procedures were conducted in three steps: (1) analysis of variance was used to identify at univariate level the plant composition and arthropod variables that were significantly related with both male and female occurrence sites; (2) principal components analysis was performed using the variables with significant results at univariate level; (3) model averaging on generalized linear and mixed models was applied to evaluate the selection probability of each principal component. The species occurs in sites with high floristic richness and high abundance of Fabaceae species, although plant composition differs from male to female sites. These variables were found to be crucial to provide higher abundances of arthropods, notably of Acrididea, Formicidae and some groups of Coleoptera which are decisive for the selection of displaying or female breeding sites

Aromatic Plants in Eurasian Blue Tit Nests: The ‘Nest

The ‘Nest Protection Hypothesis’ suggests that some birds add aromatic plants to their nests to repel or kill ectoparasites. This behavior has been described for several species, including the Eurasian Blue Tit (Cyanistes caeruleus). We studied the reproductive performance, based on 26 nests (in nest boxes), of this species in mixed forested areas of Quercus spp. and Pinus pinea in the Parque Florestal de Monsanto, the largest park of Lisbon, Portugal. The frequency of aromatic plants in nests was compared with frequency of these plants in the study area. The three most frequent aromatic plants (Dittrichia viscosa, Lavandula dentata, Calamintha baetica) in nests were used more than expected from their availability in the study area. We could not reject the null hypothesis that nest survival rate is independent of the presence of aromatic plants in the nest

The importance of grazing regime in the provision of breeding habitat for grassland birds: The case of the endangered little bustard (Tetrax tetrax)

In Mediterranean dry grasslands, grazing by domestic animals is an important agricultural activity on dry grasslands. Several bird species occur in these grazed habitats and are now experiencing a near continuous decline. We investigated the impact of livestock grazing on the threatened little bustard (Tetrax tetrax L.). The study was conducted at the NATURA 2000 Site/Important Bird Area of Cabrela, Portugal. Our main goals were to investigate responses of little bustard territorial males and breeding females to different livestock management practices, namely pasture types, stocking rates and sward structure. Bird distribution was surveyed using car and foot surveys. Data on grazing was supplied by land managers every 10 days from February to June through field interviews. Generalised additive models and model averaging were used to compute predictive models. Results indicate that higher probabilities of occurrence were found in long-term pastures and under light-moderate grazing conditions (stocking rates around 0.4 LU/ha). Conversely, lower probabilities of occurrence were found in ungrazed or heavy grazed fields. Males occurred mostly in large fields, but this variable seemed to be less important for females. On the other hand, green plant cover and the vegetation height were good predictors for the occurrence of females but not for males. Females used mostly pastures with vegetation height around 20–25 cm. Our results suggest that grazing management plans that aim to conserve little bustard populations should consider (1) the maintenance of the larger long-term pastures and (2) the use of light-moderate stocking rates (0.2–0.6 LU/ha)

Intergovernmental grant rules, the "golden rule" of public finance and local expenditures

The Stability and Growth Pact and the process of fiscal consolidation in several European countries have enhanced the role of fiscal rules at sub-national level. This paper analyzes the combined effect of a rule to allocate capital and current block grants to local governments and the “golden rule” of public finance (surplus of current balance). We argue that the two fiscal rules introduce significant rigidities and distortions in local governments’ expenditures structure since these mimic the structure of revenues. This effect is particularly relevant in municipalities that are more dependent of intergovernmental grants, mainly rural. On the other hand, urban municipalities with greater tax revenues (current revenues) are constrained in their ability to make capital investments because they receive per capita capital grants below what economies of scale would suggest. An empirical analysis of Portuguese local governments shows that it is no longer the median voter, but fiscal rules, that command the broad pattern of expenditure (current versus capital) at a local level. This paper is a contribution to the literature on the perverse effects of fiscal rules.Intergovernmental block grants; Fiscal Rules; Local Government Expenditure; “Golden Rule”