Euro-Dollar Real Exchange Rate Dynamics in an Estimated Two-Country Model

Central puzzles in international macroeconomics are why fluctuations of the real exchange rate are so volatile with respect to other macroeconomic variables, and the contradiction of efficient risk-sharing. Several theoretical contributions have evaluated alternative forms of pricing under nominal rigidities along with different asset markets structures to explain real exchange dynamics. In this paper, we use a Bayesian approach to estimate a standard two-country New Open Economy Macroeconomics (NOEM) using data for the United States and the Euro Area, and perform model comparisons to study the importance of departing from the law of one price and complete markets assumptions. Our results can be summarized as follows. First, we find that the baseline model does a good job in explaining real exchange rate volatility, but at the cost of implying too high volatility in output and consumption. Second, the introduction of incomplete markets allows the model to better match the volatilities of all real variables. Third, introducing sticky prices in local currency pricing (LCP) improves the fit of the baseline model, but not by as much as by introducing incomplete markets. Finally, we show that monetary shocks have played a minor role in explaining the behavior of the real exchange rate, while both demand and technology shocks have been importantReal Exchange Rates, Bayesian Estimation, Model Comparison

Relativistic-dft study of the electronic structure, bonding and energetic of the [ref8]־ and [uf8]2- ions

Indexación: ScieloABSTRACT In this study we evaluated the importance of the relativistic effects (scalar and spin-orbit) on the description of the electronic structure, bonding and the energetic of the [ReF8]- and [UF8]2- ions. We described the bonding interaction between ligands and metal center using the energy decomposition analysis (EDA) proposed by Morokuma and Ziegler, in which it can be appreciated a strong ionic behavior for both ions since the electrostatic interaction energy (∆Ezlestat) is greater than the orbitalic interaction energy (∆EOrb). Furthermore, a qualitative analysis using the mapping of the electrostatic potential over the total electronic density evidence an increase of the ionic character, as well as, the polarization of the electronic density as U > Re. The electron localization function (ELF) corroborates the bonding analysis because of the lack of di-synaptic basins on the metal-ligand bonding region

Technology Shocks and Aggregate Fluctuations: How Well Does the RBS Model Fit Postwar U.S. Data?

Our answer: not so well. We reach that conclusion after reviewing recent research on the role of technology as a source of economic fluctuations. The bulk of the evidence suggests a limited role for aggregate technology shocks, pointing instead to demand factors as the main force behind the strong positive comovement between output and labor input measures.

Asymptotic stability at infinity for differentiable vector fields of the plane

Let X:R2\Dr->R2 be a differentiable (but not necessarily C1) vector field, where r>0 and Dr={z\in R2:|z|\le r}. If for some e>0 and for all p\in R2\Dr, no eigenvalue of D_p X belongs to (-e,0]\cup {z\in\C:\mathcal{R}(z)\ge 0}, then (a)For all p\in R2\Dr, there is a unique positive semi--trajectory of X starting at p; (b)\mathcal{I}(X), the index of X at infinity, is a well defined number of the extended real line [-\infty,\infty); (c) There exists a constant vector v\in R2 such that if \mathcal{I}(X) is less than zero (resp. greater or equal to zero), then the point at infinity \infty of the Riemann sphere R2\cup\set{\infty} is a repellor (resp. an attractor) of the vector field X+v.Comment: 16 pages, 7 figure