Ricardian Equivalence: Evidence From South American Countries

This study deals with the intergenerational effect of national debt.  We try to find out whether the government deficit incurred today has any adverse effect on the generations to come.  More specifically, this study tests the notion that any deficit acquired by the government today is offset by the private sector by reducing their consumption and increasing their savings to pay for the debt some times in the future.  Since the time horizon for the government is longer than that of the private agents, the private agents altruistically bequeath what they have saved along with interest earned to their offsprings.  This study empirically verifies the debt neutrality hypothesis for several South American countries for which workable data were available.  The results do not support the debt neutrality hypothesis and show that economic agents consider government bonds net wealth affecting their consumption in a positive way

A Panel Data Analysis Of The Lucas Hypothesis

In this study we have attempted to verify one of the implications of the Lucas (1973) hypothesis using two-digit industry-level panel data for the U.S. Manufacturing Sector. The hypothesis states that the higher the nominal demand volatility, the lower will be the impact of nominal changes on real variables. Unlike other studies, we use disaggregated panel data for nineteen industries, which are scattered throughout the country, and are subject to the same fiscal and monetary shocks. Another unique feature of this study is the use of price level data at the two-digit industry-level. As opposed to the use of overall price level data, which is common in the literature, we make use of the price level data at the two-digit industry-level. The results of our study support the Lucas hypothesis. Industries with low relative demand volatility transmit the effects of nominal demand shocks exclusively to output and industries with high relative volatility pass on the shocks directly to prices. Finally, we tested for the relation between the real impact of the nominal aggregate disturbances and the relative volatility of industry demands. Our results show strong negative relation between them. That is, the higher the nominal demand volatility facing an industry, the less its impact would be on real output

Finishing the euchromatic sequence of the human genome

The sequence of the human genome encodes the genetic instructions for human physiology, as well as rich information about human evolution. In 2001, the International Human Genome Sequencing Consortium reported a draft sequence of the euchromatic portion of the human genome. Since then, the international collaboration has worked to convert this draft into a genome sequence with high accuracy and nearly complete coverage. Here, we report the result of this finishing process. The current genome sequence (Build 35) contains 2.85 billion nucleotides interrupted by only 341 gaps. It covers ∼99% of the euchromatic genome and is accurate to an error rate of ∼1 event per 100,000 bases. Many of the remaining euchromatic gaps are associated with segmental duplications and will require focused work with new methods. The near-complete sequence, the first for a vertebrate, greatly improves the precision of biological analyses of the human genome including studies of gene number, birth and death. Notably, the human enome seems to encode only 20,000-25,000 protein-coding genes. The genome sequence reported here should serve as a firm foundation for biomedical research in the decades ahead