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Social and Behavioral Sciences Commons™
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Articles 1 - 3 of 3
Full-Text Articles in Social and Behavioral Sciences
The “Price Puzzle” Under Changing Monetary Policy Regimes, Andre V. Mollick, Adolfo Sachsida
The “Price Puzzle” Under Changing Monetary Policy Regimes, Andre V. Mollick, Adolfo Sachsida
Economics and Finance Faculty Publications and Presentations
This paper examines the “price puzzle”, the rise in the price level following a contractionary monetary policy shock, using monthly US data from 1960 to 2006. Deviating from the standard practice is including commodity prices to “solve the puzzle”, our benchmark VAR contains output, prices, the federal funds rate and M1 money stock, while the augmented VAR includes the 10-year long bond yield. Splitting the sample at October of 1979, we find very contrasting patterns and rationalize them under the changing relationship between money and the funds rate across periods. First, the price puzzle is confined to the pre-Volcker period. …
Imperfect Detection Of Tax Evasion In A Corrupt Tax Administration, Diego Escobari
Imperfect Detection Of Tax Evasion In A Corrupt Tax Administration, Diego Escobari
Economics and Finance Faculty Publications and Presentations
This article models the imperfect detection of tax evasion motivated by the existence of a corrupt tax administration. Consistent with previous literature, fines and audit probabilities both have a positive effect on compliance. Moreover, the model shows that they have a negative effect on the bribes paid to corrupt tax officials. More corruption decreases compliance levels, giving honest auditors incentives to work harder to detect evasion. Giving inspectors a share of the detected evasion (tax farming) makes auditors work harder; however, increasing their wages reduces their exerted effort to discover evasion. Higher compliance can as well be achieved by hiring …
Demand Shifting Across Flights And Airports In A Spatial Competition Model, Diego Escobari, Sang-Yeob Lee
Demand Shifting Across Flights And Airports In A Spatial Competition Model, Diego Escobari, Sang-Yeob Lee
Economics and Finance Faculty Publications and Presentations
This paper investigates the nature of day-to-day competition between flights using a unique panel data set on prices and inventories. We use instrumental variables methods and several spatial autoregressive models (SAR) to estimate price reaction functions. The primary source of product differentiation is departure time. After controlling for flight-specific characteristics and various sources of price dispersion, we find important evidence of demand shifting between competing flights. Most of the shift is being captured by flights scheduled to depart within a 3-hour window. We find no evidence of demand shifting between airports.