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DIW Discussion Papers 754 / 2007
We investigate price index convergence on the base of regional data for 439 German districts. Prices refer to the overall consumer price index as well as to the index without housing prices. To increase the efficiency of the testing framework, a panel unit root analysis is performed, where cross section dependencies are taken into account. The tests indicate a lack of regional price convergence. While ...
2007| Christian Dreger, Reinhold Kosfeld
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DIW Discussion Papers 750 / 2007
Interregional differentials in nominal wages in the Russian Federation are huge compared to other countries. Using the NOBUS micro-data and a methodology based on the estimation of the wage equation augmented by aggregate regional characteristics, we show that these differentials have a compensative nature. Russian workers receive wage compensations for living in regions with a higher price level and ...
2007| Aleksey Oshchepkov
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DIW Discussion Papers 746 / 2007
This paper examines whether the behaviour of the real exchange rate is associated with a particular regime for the nominal exchange rate, like fixed and flexible exchange rate arrangements. The analysis is based on 16 annual real exchange rates and covers a long time span, 1870-2006. Four subperiods are distinguished and linked to exchange rate regimes: the Gold Standard, the interwar float, the Bretton ...
2007| Christian Dreger, Eric Girardin
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DIW Discussion Papers 741 / 2007
The neoclassical growth model predicts convergence of productivity or per capita output levels across regions. If participation in the labor force is constant, convergence of per capita income is implied. We investigate this hypothesis for the Iranian economy using data on demand deposits as a proxy for GDP. Furthermore, the analysis controls for the effects of rent seeking. Due to its impact on the ...
2007| Christian Dreger, Teymur Rahmani, Hans-Friedrich Eckey
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DIW Discussion Papers 739 / 2007
This study compares two alternative approaches to estimate parameters in gravity equations. We compare the traditional OLS approach applied to the log-linear form of the gravity model with the Poisson Quasi Maximum Likelihood (PQML) estimation procedure applied to the non-linear multiplicative specification of the gravity model. We use the trade flows for all products, for all manufacturing products ...
2007| Boriss Siliverstovs, Dieter Schumacher
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DIW Discussion Papers 735 / 2007
This study suggests another explanation of the "missing globalization puzzle" typically observed in the empirical gravity models. In contrast to the previous research that focused on aggregated trade flows, we employ the trade flows in manufacturing products broken down by 25 three-digit ISIC Rev.2 categories. We estimate the distance coefficient using the log-linear specification of the standard as ...
2007| Boriss Siliverstovs, Dieter Schumacher
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DIW Discussion Papers 730 / 2007
In this paper we investigate the effects of EU enlargement on price convergence. The internal market is expected to boost integration and increase efficiency and welfare through a convergence of prices in product markets. Two principal drivers are crucial to explain price developments. On the one hand, higher competition exerts a downward pressure on prices because of lower mark ups. On the other hand, ...
2007| Christian Dreger, Konstantin Kholodilin, Kirsten Lommatzsch, Jiri Slacalek, Przemyslaw Wozniak
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DIW Discussion Papers 703 / 2007
This study develops a parsimonious stable coefficient money demand model for Latvia for the period from 1996 till 2005. A single cointegrating vector between the real money balances, the gross domestic product, the long-term interest rate, and the rate of inflation is found. Our study contributes to better understanding of the factors shaping the demand for money in the new Member States of the ...
2007| Boriss Siliverstovs
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DIW Discussion Papers 691 / 2007
In this study we analyse the impact of workers' remittances on the decision to migrate by means of cointegration analysis. In traditional migration theories, especially in human capital models, the decision to migrate is based upon comparison of expected future incomes in the sending and the receiving countries adjusted for the cost of migration. By contrast, the new economics of labour migration suggests ...
2007| Sule Akkoyunlu, Boriss Siliverstovs
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DIW Discussion Papers 675 / 2007
This study develops a parsimonious stable coefficient money demand model for Estonia for the period from 1995 till 2006. Using the Johansen Full Information Maximum Likelihood framework the two cointegrating vectors are found among the system variables including the real money balances, the gross domestic product, the long- and short-term interest rates, and the rate of inflation. The first cointegrating ...
2007| Boriss Siliverstovs