The Evolution of the Credit‐to‐GDP Ratio: An Empirical Analysis

We assess the persistence of the credit‐to‐GDP ratio over more than 130 years of data for 11 advanced economies, employing an approach based on fractional integration and allowing for nonlinearities. We show how the time series properties of the data changed around World War II (WWII). Moreover, our findings are consistent with the idea that the supply of mortgage loans has been particularly strong since WWII, in the sense that the degree of integration of the leverage ratio obtained with only these loans is larger than that of the ratio obtained with the total loans for almost all the studied countries. Nevertheless, it is generally the case that both types of ratios show a higher degree of integration after WWII than before it, though often insignificantly, and that their time trends are significant only after WWII.     

Tareas,ocupaciones y salarios en países de la OCDE

En este artículo se investigan los vínculos entre ingresos, capital humano y tareas laborales, utilizando información internacionalmente comparable del PIAAC (OCDE) sobre competencias de adultos. Tomando el marco teórico de Autor y Handel (2013), se amplía el análisis empírico a 21 países de la OCDE. Los datos permiten tener en cuenta tanto el nivel de instrucción como una medida de las competencias cognitivas. Los resultados confirman que las tareas que implica cada ocupación tienen influencia en las diferencias salariales tanto entre ocupaciones como dentro de cada una y proporcionan pruebas empíricas del poder de predicción del modelo para un gran número de países.     

Cost structure,productivity and efficiency of the Italian public higher education industry 2001–2011

In this paper, I analyze the cost structure of the Italian higher education system for the decade between 2001 and 2011, by means of a stochastic translog cost function. I suggest that the judgment about the optimal configuration of the sector is strongly dependent upon the policy priorities set by decision makers. When assuming that the universities’ output is the number of students, scale economies are exhausted, and marginal costs are relatively low; when considering graduates as outputs instead, there is opportunity for increasing the scale of operations. Inefficiency affects production in a sensible manner, especially when assuming that the target output is the number of graduates. Moreover, efficiency contributes to explaining a relevant portion of the productivity increases in the period. No significant scope economies between teaching and research emerge, suggesting that a higher degree of universities’ specialization can be a direction for improving the sector’s efficiency and productivity.     

Consumer heterogeneity and the development of environmentallyfriendly technologies

The paper examines the effect of heterogeneous consumer demand on the generation and diffusion of environmentally benign technology paradigms. The history of the shift from horse-based to car-based transport provides the basis for an empirically grounded multi-agent model of sequential technology competitions. Firms compete on price, product quality, and the environmental sustainability of their products, and improve their market position through product innovation. The trajectory of product innovation is shaped by the distribution of heterogeneous consumer preferences with regards to quality, price, and the environmental impact of consumption. The distribution of consumer preferences determines whether cleaner designs are developed within a technology paradigm, whether new, more environmentally benign paradigms are developed, and whether these new paradigms replace older, environmentally harmful technology paradigms.     

Fiscal Policies and Credit Regimes: A TVAR Approach

This work investigates how the state of credit markets affects the impact of fiscal policies. We estimate a threshold vector autoregression (TVAR) model on US quarterly data for the period 1984–2010. We employ the spread between BAA‐rated corporate bond yield and 10‐year treasury constant maturity rate as a proxy for credit conditions. We find that the response of output to fiscal policy shocks is stronger and more persistent when the economy is in the ‘tight’ credit regime. Fiscal multipliers are significantly different in the two regimes: they are abundantly and persistently higher than one when firms face increasing financing costs, whereas they are feebler and often lower than one in the ‘normal’ credit regime. The results appear to be robust to different model specifications, fiscal foresight, alternative threshold variables, different measure of variables and sample periods. Copyright © 2014 John Wiley & Sons, Ltd.