The Pricing Behaviour of Firms in the Euro Area: New Survey Evidence

This study investigates the pricing behaviour of firms in the euro area on the basis of surveys conducted by nine Eurosystem national central banks. Overall, more than 11,000 firms participated in the survey. The results are very robust across countries. Firms operate in monopolistically competitive markets, where prices are mostly set following mark-up rules and where price discrimination is a common practice. Our evidence suggests that both time- and state-dependent pricing strategies are applied by firms in the euro area: around one-third of the companies follow mainly time-dependent pricing rules while two-thirds use pricing rules with some element of state-dependence. Although the majority of firms take into account a wide range of information, including past and expected economic developments, about one-third adopts a purely backward-looking behaviour. The pattern of results lends support to the recent wave of estimations of hybrid versions of the New Keynesian Phillips Curve. Price stickiness arises both at the stage when firms review their prices and again when they actually change prices. The most relevant factors underlying price rigidity are customer relationships – as expressed in the theories about explicit and implicit contracts – and thus, are mainly found at the price changing (second) stage of the price adjustment process. Finally, we provide evidence that firms adjust prices asymmetrically in response to shocks, depending on the direction of the adjustment and the source of the shock: while cost shocks have a greater impact when prices have to be raised than when they have to be reduced, reductions in demand are more likely to induce a price change than increases in demand.

The pricing behaviour of firms in the euro area : new survey evidence

This study investigates the pricing behaviour of firms in the euro area on the basis of surveys conducted by nine Eurosystem national central banks. Overall, more than 11,000 firms participated in the survey. The results are very robust across countries. Firms operate in monopolistically competitive markets, where prices are mostly set following mark-up rules and where price discrimination is a common practice. Our evidence suggests that both time- and state-dependent pricing strategies are applied by firms in the euro area: around one-third of the companies follow mainly time-dependent pricing rules while two-thirds use pricing rules with some element of state-dependence. Although the majority of firms take into account a wide range of information, including past and expected economic developments, about one-third adopts a purely backward-looking behaviour. The pattern of results lends support to the recent wave of estimations of hybrid versions of the New Keynesian Phillips Curve. Price stickiness arises both at the stage when firms review their prices and again when they actually change prices. The most relevant factors underlying price rigidity are customer relationships - as expressed in the theories about explicit and implicit contracts - and thus, are mainly found at the price changing (second) stage of the price adjustment process. Finally, we provide evidence that firms adjust prices asymmetrically in response to shocks, depending on the direction of the adjustment and the source of the shock: while cost shocks have a greater impact when prices have to be raised than when they have to be reduced, reductions in demand are more likely to induce a price change than increases in demand.price setting, nominal rigidity, real rigidity, inflation persistence, survey data.

Impact of COVID-19 emergency on the psychological well-being of susceptible individuals

The current pandemic has exerted an unprecedented psychological impact on the world population, and its effects on mental health are a growing concern. The present study aims to evaluate psychological well-being (PWB) during the COVID-19 crisis in university workers with one or more diseases likely to increase the risk of severe outcomes in the event of SARS-CoV-2 infection, defined as susceptible. 210 susceptible employees of an Italian University (aged 25-71 years) were recruited during the COVID-19 second wave (October-December 2020). A group comprising 90 healthy university employees (aged 26-69 years) was also recruited. The self-report Psychological General Well Being Index (PGWBI) was used to assess global PWB and the influence on six sub-domains: anxiety, depressed mood, positive well-being, self-control, general health, and vitality. We applied non-linear dimension-reduction techniques and regression methods to 45 variables in order to assess the main demographic, occupational, and general-health-related factors predicting PWB during the COVID-19 crisis. PGWBI score was higher in susceptible than in healthy workers, both as total score (mean 77.8 vs 71.3) and across almost all subscales. Age and jobs involving high social interaction before the pandemic were inversely associated with the PWB total score, general health, and self-control subscores. The current data suggest no decline in PWB during the second wave of COVID-19 health emergency in susceptible individuals of working age. Critically, higher risk for mental-health issues appears to be inversely related to age, particularly among individuals deprived of their previous level of social interaction at work

Collapses and explosions in self-gravitating systems

Collapse and reverse to collapse explosion transition in self-gravitating systems are studied by molecular dynamics simulations. A microcanonical ensemble of point particles confined to a spherical box is considered; the particles interact via an attractive soft Coulomb potential. It is observed that the collapse in the particle system indeed takes place when the energy of the uniform state is put near or below the metastability-instability threshold (collapse energy), predicted by the mean-field theory. Similarly, the explosion in the particle system occurs when the energy of the core-halo state is increased above the explosion energy, where according to the mean field predictions the core-halo state becomes unstable. For a system consisting of 125 -- 500 particles, the collapse takes about $10^5$ single particle crossing times to complete, while a typical explosion is by an order of magnitude faster. A finite lifetime of metastable states is observed. It is also found that the mean-field description of the uniform and the core-halo states is exact within the statistical uncertainty of the molecular dynamics data.Comment: 9 pages, 14 figure

An Overview of the Use of Neural Networks for Data Mining Tasks

In the recent years the area of data mining has experienced a considerable demand for technologies that extract knowledge from large and complex data sources. There is a substantial commercial interest as well as research investigations in the area that aim to develop new and improved approaches for extracting information, relationships, and patterns from datasets. Artificial Neural Networks (NN) are popular biologically inspired intelligent methodologies, whose classification, prediction and pattern recognition capabilities have been utilised successfully in many areas, including science, engineering, medicine, business, banking, telecommunication, and many other fields. This paper highlights from a data mining perspective the implementation of NN, using supervised and unsupervised learning, for pattern recognition, classification, prediction and cluster analysis, and focuses the discussion on their usage in bioinformatics and financial data analysis tasks

Operation of a Bloch oscillator

We report the operation of a Bloch oscillator. The active medium was a staticvoltage driven, doped GaAs/AlAs superlattice which was electromagnetically coupled to a resonator. The oscillator produced tuneable microwave radiation (frequency ~ 60 GHz; power ~ 0.5 mW; efficiency ~ 4 %). The gain (~ 10^4 /cm) was due to the nonlinearity mediated by miniband electrons. We also present a theory of the oscillator. The Bloch oscillator should in principle be feasible for generation of radiation up to frequencies of 10 THz and more.Comment: 9 pages, 4 figure

Terahertz superlattice parametric oscillator

We report a GaAs/AlAs superlattice parametric oscillator. It was pumped by a microwave field (power few mW) and produced 3rd harmonic radiation (frequency near 300 GHz). The nonlinearity of the active superlattice was due to Bragg reflections of conduction electrons at the superlattice planes. A theory of the nonlinearity indicates that parametric oscillation should be possible up to frequencies above 10 THz. The active superlattice may be the object of further studies of predicted extraordinary nonlinearities for THz fields.Comment: 10 pages, 4 figure

Pade approximants for functions with branch points - strong asymptotics of Nuttall-Stahl polynomials

Let f be a germ of an analytic function at infinity that can be analytically continued along any path in the complex plane deprived of a finite set of points, f \in\mathcal{A}(\bar{\C} \setminus A), \sharp A <\infty. J. Nuttall has put forward the important relation between the maximal domain of f where the function has a single-valued branch and the domain of convergence of the diagonal Pade approximants for f. The Pade approximants, which are rational functions and thus single-valued, approximate a holomorphic branch of f in the domain of their convergence. At the same time most of their poles tend to the boundary of the domain of convergence and the support of their limiting distribution models the system of cuts that makes the function f single-valued. Nuttall has conjectured (and proved for many important special cases) that this system of cuts has minimal logarithmic capacity among all other systems converting the function f to a single-valued branch. Thus the domain of convergence corresponds to the maximal (in the sense of minimal boundary) domain of single-valued holomorphy for the analytic function f \in\mathcal{A}(\bar{\C} \setminus A). The complete proof of Nuttall's conjecture (even in a more general setting where the set A has logarithmic capacity zero) was obtained by H. Stahl. In this work, we derive strong asymptotics for the denominators of the diagonal Pade approximants for this problem in a rather general setting. We assume that A is a finite set of branch points of f which have the algebraic character and which are placed in a generic position. The last restriction means that we exclude from our consideration some degenerated "constellations" of the branch points.Comment: 47 pages, 8 figure