The dynamics of durable goods markets: rational expectations and sticky prices

This paper studies price dynamics in a durable good market under the assumption that consumers have rational expectations on future prices. For a wide variety of expectations, optimal consumption plans result in sticky-price demand functions. Market dynamics are characterized by intertemporal price discrimination which provides a possible explanation for the declining path of price observed in many "young" industries. Unexpected shocks on demand result in price overshooting, while unexpected supplyshocks have the opposite effect on price

The dynamics of durable goods markets: rational expectations and sticky prices.

This paper studies price dynamics in a durable good market under the assumption that consumers have rational expectations on future prices. For a wide variety of expectations, optimal consumption plans result in sticky-price demand functions. Market dynamics are characterized by intertemporal price discrimination which provides a possible explanation for the declining path of price observed in many "young" industries. Unexpected shocks on demand result in price overshooting, while unexpected supplyshocks have the opposite effect on price.Durable Goods; Rational Expectations; Sticky Prices; Interıtemporal; Overshooting;

Environmental costs of residuals: a characterization of efficient tax policies.

Durable goods leave residuals after being retired from use. If the environmental costs of the residuals are external to consumers and producers of the good, then overproduction and excess residuals will result. Ad valorem taxes are show to be ineffective in eliminating this externality. The efficient regulatory policy is shown to be based on a pigouvian tax.Externalities; Pollution control; Optimal taxation; Durable goods; Residuals;

Competencia tecnológica y estrategia: una panorámica

Este trabajo es una revisión crítica de la literatura acerca de los efectos del aprendizaje tecnológico-autónomo e inducido-sobre la estrategía de las empresas en un oligopolio

Why are there merger waves?

This paper develops a model of the timing of merger waves based on the investment opportunityı synergy (lOS) hypothesis. The model reveals some important weaknesses on the presumedı implications of IOS and suggests that changes in the institutional framework may be responsibleı for the long-term changes in merger activity. The analysis of FTC "Large Firm" Merger andı Acquisitions time series gives additional support to these conclusions

Preliminary Evidence on Takeover Target Returns in Spain: A Note.

This paper measures the share price returns to Spanish takeover targets over the period 1990 to 1994. Using several estimation and testing methods, we show that target shareholders gain significant abnormal returns in the announcement period. In the first part of the year before the announcement period, firms that become targets do not show significant abnormal returns, though there is some significant upturn in the two months before the bid.Takeovers; Target firms; Abnormal residuals; Market model; Spain;

Restricciones financieras a la inversión causadas por el riesgo de quiebra

Este artículo estudia los efectos de las condiciones financieras de las empresas sobre su comportamiento inversor. La hipótesis sostenida es que los fenómenos financieros pueden influir sobre las variables reales y en concreto, se estudia cómo la institución de la responsabilidad limitada puede ser el mecanismo a través del cual se produce esta influencia. La posibilidad de que una empresa no cumpla sus compromisos financieros traslada los riesgos de las inversiones en el sector real de la economía a los agentes del sector financiero lo que, a su vez, puede originar que el coste de los recursos financieros se ajuste según los costes de quiebra e impago asociados a las inversiones que realiza cada empresa. En este trabajo se contrasta, para una muestra de empresas españolas, un modelo de inversión donde el coste de los recursos ajenos recibidos par las empresas se ajusta a la probabilidad de que la empresa quiebre y no cumpla con sus obligaciones financieras, no rechazándose frente al modelo neoclásico de inversión

The role of banks in relaxing financial constraints: some evidence on the investment behavior of spanish firms

There is a growing body of evidence in the literature suggesting that the financial healh of a finn is likely to affect its investment behavior. This sort of capital market imperfection is often attributed to information problems that typically arise when deht and equity are diffusely held and no individual investor has an incentive to monitor the firm. We find that the neoclassical il1\'estll1ent model cannot be rejected for a sample of Spanish finns with a close bank relationship while it is r~iected for the subsample made up with the remaining firms. An augmented model incorporating horrowing constraints yields the opposite results. These results suggest that banks may play a role in alleviating capital market imperfectios in Spain. A second finding is that the effects of borrowing constraints in the augmented model vary only with the firm's cash now, but not with the asset liquidity or the tirn:'s financial health

Comparison of the Evolution of Energy Intensity in Spain and in the EU15. Why is Spain Different?

Energy intensity in Spain has increased since 1990, while the opposite has happened in the EU15. Decomposition analysis of primary energy intensity ratios has been used to identify which are the key sectors driving the Spanish evolution and those responsible for most of the difference with the EU15 energy intensity levels. It is also a useful tool to quantify which countries and economic sectors have had most influence in the EU15 evolution. The analysis shows that the Spanish economic structure is driving the divergence in energy intensity ratios with the EU15, mainly due to the strong transport growth, but also because of the increase of activities linked to the construction boom, and the convergence to EU levels of household energy demand. The results can be used to pinpoint successful EU strategies for energy efficiency that could be used toMassachusetts Institute of Technology. Center for Energy and Environmental Policy Research