Comparing monetary policy reaction functions: ECB versus Bundesbank

This paper compares the European Central Bank’s (ECB) conduct of monetary policy with that of the Bundesbank. Estimated monetary policy reaction functions show that the ECB reacts similarly to expected inflation but significantly stronger to the output gap than the Bundesbank did. Theoretical considerations suggest that this stronger response to the output gap may rather be due to a higher interest rate sensitivity of the German output gap than to a higher weight given to output stabilisation in the objective function of the ECB. Counterfactual simulations based on the estimated interest rate reaction functions reveal that German interest rates would not have been lower under a hypothetical Bundesbank regime after 1999. However, this conclusion crucially depends on the assumption of an unchanged long-run real interest rate for the EMU period and is reversed when the Bundesbank reaction function is adjusted for the lower long-run real interest rate estimated for the ECB regime.

BargCrEx: A System for Bargaining Based Aggregation of Crowd and Expert Opinions in Crowdsourcing

Group Decision and Negotiation - Crowdsourcing and crowd voting systems are being increasingly used in societal, industry, and academic problems (labeling, recommendations, social choice, etc.) due...     

Knowledge diffusion and morality: Why do we freely share valuable information with Strangers?

This article offers a model integrating heterogeneously moral preferences to overcome the seemingly irrational tendency of individuals to freely share data and knowledge. We build on recent literature showing that moral preferences are favored by evolution theoretically, and have a strong explanatory power empirically, to model individual sharing behavior. Our analysis highlights the limit of financial incentives and the importance of promoting a sharing culture by enhancing awareness. Shedding light on how people respond not only to financial but also moral motives, we contribute to the ongoing policy debate on the design of effective open science policies.