EMU@10: Coping with Rotating Slumps

On the eve of the financial and economic crisis of 2008/09, the European Economic and Monetary Union (EMU) could look back to a decade of remarkable macroeconomic stability. Somewhat surprisingly, though, inflation differentials across member states have been substantial and persistent, causing large cumulative changes in relative price levels. This paper presents a stylized theoretical model of a monetary union which demonstrates how persistent inflation differentials can arise from inflation inertia in conjunction with the loss of monetary control on the national level. The interaction of inflation and output dynamics which is at the core of the model generates a pattern of ‘rotating slumps’ (a term coined by Blanchard 2007b). A number of implications are derived from the model which shed light on the observed behavior of cyclical conditions and inflation rates in the euro area. The paper concludes that the monetary-fiscal framework of EMU does not pay adequate attention to the need of dealing with internal macroeconomic tensions within the euro zone.EMU

On the Macroeconomics of European Divergence

Geldpolitik; Finanzpolitik; Währungspolitik; Makroökonomik; Eurozone; Europäische Wirtschafts- und Währungsunion

Not more than three tissue kallikreins identified from organs of the guinea pig

The large and varied multigene families of tissue kallikreins of rat and mouse are considered to selectively release as many bioactive peptides. In order to determine whether a similar family of enzymes is expressed in the organs of the guinea pig purification studies were performed. Tissue kallikreins from the submandibular gland, coagulating gland/prostate complex and the pancreas were separated by affinity chromatography on benzamidine-Sepharose. Amino-terminal sequences, the patterns of hydrolysis rates of a number of peptide p-nitroanilides, inactivation rates by active site-directed irreversible inhibitors, specific kininogenase activities and types of kinin released were used to probe the identity of the isolated enzymes. Guinea pig tissue kallikreins 1 and 2 have been reported previously. In the present study we have identified a third type, designated tissue kallikrein la because of its sequence similarity to kallikrein 1, which differs from the latter in the catalytic properties. The inferred occurrence of not more than two or three independent tissue kallikrein genes in the guinea pig contrasts with the varied family of enzymes expressed by the large number of such genes present in rats and mice. Expression in the guinea pig (and also in humans) of only a small number of tissue kallikreins makes specific processing of a multitude of biologically active peptides by such enzymes unlikely

Saving, Microinsurance: Why You Should Do Both or Nothing. A Behavioral Experiment on the Philippines

This paper analyzes data from a novel field experiment designed to test the impact of two different insurance products and a secret saving device on solidarity in risk-sharing groups among rural villagers in the Philippines. Risk is simulated by a lottery, risk-sharing is possible in solidarity groups of three and insurance is introduced via less risky lotteries. Our main hypothesis is that formal market-based products lead to lower transfers among network members. We also test for the persistence of this crowding-out of solidarity. We find evidence for a reduction of solidarity by insurance if shocks are observable. Depending on insurance design, there is also evidence for persistence of this effect even if insurance is removed. Simulations using our regression results show that the benefits of insurance are completely offset by the reduction in transfers. However, if secret saving is possible solidarity is very low in general and there is no crowding out effect of insurance. This suggests that introducing formal insurance is not as effective as it is hoped for when the monetary situation can be closely monitored, but that it might be a very important complement when savings inhibit observing financial resources. --

The impact of data security on firm value : how do stock markets react to data breach announcements?

Far too often, data security concerns are not taken as seriously as they should be. This negligent behavior does not seldom result in data breaches with far reaching economic consequences. This paper demonstrates that there is an observable decline in firm value following a data breach announcement, applying an event study methodology to a sample of 366 firms being subject to data breaches between January 2013 to July 2018. Using a onefactor and a three-factor model to estimate abnormal returns, firms experiencing a data breach lost on average about 1.33 percent of equity over a three-day window around the event. For different industries, deviations in the magnitude of negative market reactions are detected. Various company and incident related variables, such as company size and number of customer records exposed are deployed in regression analyses to account for cross-sectional variations in abnormal returns. Profitability has a positive influence on the abnormal returns obtained. Multiple breaches have a negative impact on the abnormal equity returns, however, there is no significant difference in the severity when compared to single breaches. Other factors, namely company size, leverage, magnitude of the breach and type of breach do not have any statistically significant influence on the market reactions observed.Frequentemente, as preocupações em torno da segurança dos dados não são levadas tão a sério quanto deveriam. Este comportamento negligente resulta, não raramente, em violações de dados com consequências económicas profundas. Este artigo demonstra um declínio observável no valor das empresas após o anúncio de uma violação de dados, aplicando uma metodologia de estudo de eventos a uma amostra de 366 empresas sujeitas a violações de dados entre janeiro de 2013 e julho de 2018. Utilizando um modelo de um fator e de três fatores para estimar retornos anormais, as empresas que sofreram violações de dados perderam, em média, aproximadamente 1,33 por centro do património líquido num período de três dias a contar do evento. Para diferentes indústrias, são detetados desvios na magnitude das reações negativas ao mercado. Várias variáveis relacionadas com a empresa e com incidentes, tais como o tamanho da empresa e o número de registos de clientes expostos são incorporadas em análises de regressão para contabilizar as variações transversais nos retornos anormais. A rentabilidade tem uma influência positiva nos retornos anormais obtidos. Múltiplas violações têm um impacto negativo nos retornos anormais do património líquido, no entanto, não há diferenças significativas na gravidade quando comparadas com violações individuais. Outros fatores, nomeadamente o tamanho da empresa, alavancagem, a magnitude e o tipo de violação não possuem qualquer influência estatisticamente significativa nas reações de mercado observadas

Hydrodynamics of bivalve offshore aquaculture

Without sustainable offshore aquaculture it is impossible to achieve food security for coastal communities. Growing populations in coastal zones, amounting to approximately 40% of the entire human population, exert high pressure on coastal ecosystems and natural resources, and furthermore increase the need for additional food sources. In coastal zones, marine-based nutrients offer great potential to meet this demand. With sustainability in mind, extractive species like mussels and oysters, which require no additional food, are becoming increasingly more important. Therefore, researchers, industry representatives, and policymakers alike are seeking to utilize offshore areas for shellfish aquaculture. To successfully grow shellfish in offshore areas, it is vital to understand the complex interaction of offshore aquaculture systems with waves and currents. Modelling these interactions facilitates the development of aquaculture structures that can withstand these high-energy environments. Therefore, the aim of this thesis is to increase the understanding of the complex flow around offshore shellfish aquaculture systems and their interaction with waves and currents. The literature review reports on the hydromechanic drivers with a focus on the forces, motion, and wave-structure interaction of bivalve aquaculture systems to lay a sound basis for the analysis and interpretation of the results. From there, a lack of information regarding the motions and forces of bivalve aquaculture components in steady and oscillatory flow as well as a lack of guidance as to how the complex surface of mussel dropper lines should be modelled is identified. To address these gaps of knowledge, physical experiments with live blue mussels (Mytilus edulis), substitute surrogate models, a newly designed aquaculture system, and naturally floating islands were conducted. The results of these experiments, published in four journal manuscripts, provide insights regarding the hydrodynamic coefficients for mussel dropper lines and its influencing parameters. Furthermore, the procedural design and creation as well as the hydrodynamic fit of a surrogate structure are shown. Wave and current tests with the novel aquaculture system and the comprehensive analysis of the hydrodynamic interaction of waves and floating natural islands in a large-scale facility provide insights regarding the motion and forces. Combined, the results enhance the understanding of the hydrodynamic processes around bivalve offshore aquaculture structures

The Bright and Dark Side of Eudaimonic Emotions: A Conceptual Framework

Based on a review of eudaimonic emotion concepts, definitional and empirical overlaps between the concepts are identified and a framework of eudaimonic emotions is developed. The framework proposes that feelings of elevation, awe, tenderness, and being moved can be differentiated based on their feeling components, thus constituting the feeling-specific types of eudaimonic emotions. A variety of other emotion concepts rely on reference to their elicitors, such as moral elevation (i.e., being moved by moral virtue), aesthetic awe (i.e., being moved by beauty), kama muta (i.e., being moved by communal sharing) and admiration (i.e., being moved by achievements), thus constituting elicitor-specific types of eudaimonic emotions. Structuring eudaimonic emotions along these lines allows for integrating research on these emotions. This integration leads to the proposition of general eudaimonic effects and value-specific effects of positive eudaimonic emotions on behaviour. Considering these effects can enhance understanding of how positive eudaimonic emotions affect pro-social intentions—the bright side of being moved—as well as the manipulating effects of propaganda—the dark side of being moved