The Relationship Between Financial Risk Premia and Macroeconomic Volatility: Issues and Perspectives on the Run-Up to the Turmoil

This note sketches the issues that arise while interpreting the relation between macroeconomic volatility and financial risk premia from the perspective of the standard consumption-based asset pricingmodel. The relation arises from the fact that all assets are priced by the same "pricingkernel", given by the inter-temporal marginal rate of substitution in consumption of the representative investor. Since the pricing kernel is a function of aggregate consumption, financial risk premia are positively related to consumption growth volatility. Therefore, from the perspective of this workhorse often employed in the academic debate, the persistent reduction in macroeconomic volatility can be considered a cause for the low average risk premia prevailing during the so-called Great Moderation, namely the period preceding the recent turmoil in financial markets. We challenge this view by shedding light on the issues that generate an inconsistent interpretation of the model outcomes. In particular, since the consumption-based model is geared towards asset prices consistent with macroeconomic fundamentals, we argue that it is not suited for interpreting current developments where underestimation of risk may have subsidized asset prices. In particular, according to the evidence for the Great Moderation, the model view suffers from observational equivalence.

Distortionary tax instruments and implementable monetary policy

We introduce distortionary taxes on consumption, labor and capital income into a New Keynesian model with Calvo pricing and nominal bonds. We study the relation between tax instruments and optimal monetary policy by computing simple rules for monetary and fiscal policy when one tax instrument at a time varies, while the other two are fixed at their steady-state level. The optimal rules maximize the second-order approximation to intertemporal utility. Three results emerge: (a) when prices are sticky, perfect inflation stabilization is optimal independently from the tax instrument adopted; (b) the optimal degree of responsiveness of monetary policy to output varies depending on which tax instrument induces fluctuations in the average tax rate; (c) when prices are flexible, fiscal rules that prescribe unexpected variations in the price level to support debt changes are always welfare-maximizing.

A welfare perspective on the fiscal-monetary policy mix: The role of alternative fiscal instruments

The need of fiscal consolidation is likely to dominate the policy agenda in the next decade; starting from statistical evidence on the conduct of fiscal policy in the EMU area over the last decade, this paper addresses the optimality of alternative fiscal consolidation strategies. We explore the welfare properties. In this paper we explore the welfare properties of debt-targeting fiscal policy implemented through, alternatively, distortionary taxation on consumption, labour and capital income or productive and wasteful government expenditure. We build a general equilibrium model with various distortions in order to evaluate the welfare ranking of alternative fiscal policy configurations under different monetary policy regimes. Our results show the welfare superiority of fiscal adjustments based on productive government expenditure, whereas the use of a capital income tax rate as fiscal instruments yields the highest welfare loss.

Equidistribution of the Fekete points on the sphere

The Fekete points are the points that maximize a Vandermonde-type determinant that appears in the polynomial Lagrange interpolation formula. They are well suited points for interpolation formulas and numerical integration. We prove the asymptotic equidistribution of the Fekete points in the sphere. The way we proceed is by showing their connection with other array of points, the Marcinkiewicz-Zygmund arrays and the interpolating arrays, that have been studied recently

Equidistribution of the Fekete points on the sphere

The Fekete points are the points that maximize a Vandermonde-type determinant that appears in the polynomial Lagrange interpolation formula. They are well suited points for interpolation formulas and numerical integration. We prove the asymptotic equidistribution of the Fekete points in the sphere. The way we proceed is by showing their connection with other array of points, the Marcinkiewicz-Zygmund arrays and the interpolating arrays, that have been studied recently

The Multiplier-Effects of Non-Wasteful Government Expenditure

Macroeconomic literature has traditionally regarded public expenditure as yielding no utility per se to any agent in the economy. In line with a few previous contributions (Linneman and Schabert 2004, Bouakez and Rebei 2007) we build a New Keynesian DSGE model with real and nominal rigidities and distortionary fiscal policy rules, calibrated on the Euro-area (1990:Q1-2008:Q4), where part of public spending is allowed to either Edgeworth complement or substitute private consumption by affecting its marginal utility. We show that the the interaction between the share of usefulness of public spending and the specification of fiscal and monetary policy rules is able to deliver private consumption multipliers which are in line with the empirical findings for the Euro-Area.

Emangiopericitoma Vs Tumore glomico

OBIETTIVI I tumori che originano dalle cellule di supporto dei vasi, i periciti, appartengono alla vasta categoria dei tumori dei tessuti molli che sono lesioni generalmente frequenti nel distretto testa-collo. La trasformazione in senso neoplastico dei periciti è comunque poco frequente e può dare origine a due gruppi neoplastici: i tumori glomici e l’emangiopericitoma. Gli autori presentano in seno alla stessa famiglia due casi clinici rispettivamente di tumori glomico timpanico e di emangiopericitoma del condotto uditivo esterno. MATERIALI I tumori glomici timpanici e giugulari sono rare neoformazioni ipervascolarizzate, a lenta crescita, che si sviluppano nell’ambito dell’orecchio medio e dell’osso temporale; fanno parte di un gruppo di tumori, definiti paragangliomi, che prendono origine da un sistema di cellule derivanti dalla cresta neurale. Esistono delle forme familiari in cui si possono osservare delle lesioni multicentriche, con comparsa sincrona delle lesioni o metacrona, rientrando così in quel gruppo di tumori definito MEN II (neoplasie endocrine multiple tipo II). Ad oggi i loci genici chiamati in causa come responsabili dell’ereditarietà sono definiti: PGL1 codificante per la Succinato Deidrogenasi sub-unità D (SDHD), PGL3 (codificante per SDHC) e PGL4 (codificante per SDHB) localizzati tutti sul cromosoma 11 (11q23-11q13.1). Il locus genico PGL2 non è stato ancora ben identificato. Anche il locus 1q21-q23 può essere responsabile di una forma familiare. L’emangiopericitoma (HPC) è un tumore vascolare maligno che insorge dalle cellule mesenchimali con differenziazione pericitica (periciti di Zimmerman). Il profilo immunoistochimico dell'HPC è incerto e la diagnosi è di solito controversa. La diagnosi differenziale con il sarcoma sinoviale, il condrosarcoma mesenchimale, l'istiocitoma fibroso e il tumore fibroso solitario è problematica. Sono state identificate anomalie cromosomiche (traslocazioni) in alcuni emangiopericitomi in particolare t(x;18)(p11.2;q11.2) ma ad oggi non sono state riscontrate delle forme familiari. RIASSUNTO Gli autori presentano due casi clinici rispettivamente di tumori glomico timpanico e di emangiopericitoma del condotto uditivo esterno di due soggetti appartenenti alla stessa famiglia analizzando le differenti caratteristiche cliniche, audiologiche ed istologiche delle forme neopastiche. CONCLUSIONI Gli autori ipotizzano una origine genetica analoga per le neoplasia sopradescritte che potrebbe essere ricondotta alla inattivazione del gene di Von Hippel-Lindau