Abstract

An extensive line of research has examined linkages among spatially‐distinct markets. We apply semi‐parametric, generalized additive vector autoregressive models to a consideration of basis linkages among North Carolina corn and soybean markets. An extensive suite of linearity tests suggests that basis and price relationships are nonlinear. Marginal effects, transmission elasticities, and generalized impulse responses are utilized to describe patterns of adjustment among markets.

This paper investigates the relation between risk taking and market power in the US banking sector by introducing the effect of geographical spillovers caused by the transmission of risk taking among banks. For this purpose, we use spatial econometrics. Our results support a negative relation between risk taking and market power. The transmission of risk taking causes significant geographical spillovers, which increases the magnitude of the relation under analysis here.

This research estimates an ordered probit model with data from the 2014 LAPOP survey to explore the factors that explain confidence in institutions in Chile. Results show an increased lack of confidence from the original peoples toward security institutions, probably due to the Mapuche Conflict. There is also a positive effect of democracy and performance variables that unveils differences in responsibilities between the executive power and the municipalities.

In this paper, the empirical analysis finds that the dynamics of inflation and unemployment can be described by a Phillips curve when allowing for a positive co-movement between trend-adjusted productivity and unemployment. This suggests that improvements in productivity have been achieved by laying off the least productive part of the labor force. Furthermore, the natural rate of unemployment is a function of the long-term interest rate, indicating that monetary policy is not completely neutral in the long run.