全球智库信息集成服务系统(G2TT): DP5970 When Small is Beautiful: Measuring the Evolution and Consequences of the Voluminosity of Patent Applications at the EPO

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP5970
	DP5970 When Small is Beautiful: Measuring the Evolution and Consequences of the Voluminosity of Patent Applications at the EPO
	Bruno van Pottelsberghe de la Potterie; Dominique Guellec; Nicolas van Zeebroeck; Niels Stevnsborg
发表日期	2006-12-03
出版年	2006
语种	英语
摘要	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 behaviour of the real exchange rate, while both demand and technology shocks have been important.
主题	International Macroeconomics
关键词	Real exchange rates Bayesian estimation Model comparison
URL	https://cepr.org/publications/dp5970
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/534808
推荐引用方式 GB/T 7714	Bruno van Pottelsberghe de la Potterie,Dominique Guellec,Nicolas van Zeebroeck,et al. DP5970 When Small is Beautiful: Measuring the Evolution and Consequences of the Voluminosity of Patent Applications at the EPO. 2006.