Recent Submissions

  • Aggregate Bankruptcy Probabilities and Their Role in Explaining Banks’ Loan Losses 

    Andreeva, Olga (Working Papers;2/2004, Working paper, 2004)
    Increased competition forces banks to narrow lending margins and at the same time relaxed lending standards worsen the pool of borrowers. To preserve sound banking system it is important task to monitor credit risk as one ...
  • Savers, Spenders and Fiscal Policy in a Small Open Economy 

    Matsen, Egil; Sveen, Tommy; Torvik, Ragnar (Working Papers;18/2004, Working paper, 2004)
    This paper analyzes the effects of fiscal policy in an open economy. We extend the savers-spenders theory of Mankiw (2000) to a small open economy with endogenous labor supply. We first show how the Dornbusch (1983) ...
  • Wage Formation Under Low Inflation 

    Holden, Steinar (Working Papers;14/2004, Working paper, 2004)
    This paper reviews the literature on the effects of low steady-state inflation on wage formation, focusing on four different effects. First, under low inflation, downward nominal wage rigidity (DNWR) may prevent real wage ...
  • Large T and Small N: A Three-Step Approach to the Identification of Cointegrating Relationships in Time Series Models with a Small Cross-Sectional Dimension 

    Hammersland, Roger (Working Papers;15/2004, Working paper, 2004)
    This paper addresses cointegration in small cross-sectional panel data models. In addition to dealing with cointegrating relationships within the cross-sectional dimension, the paper explicitly addresses the issue of ...
  • The Market Impact and Timing of Open Market Share Repurchases in Norway 

    Skjeltorp, Johannes A. (Working Papers;8/2004, Working paper, 2004)
    This paper examines a detailed dataset on open market repurchase announcements and actual repurchases conducted by Norwegian firms during the period 1998-2001. Firms that announce a repurchase plan experience a positive ...
  • The Degree of Independence in European Goods Markets: An I(2) Analysis of German and Norwegian Trade Data 

    Hammersland, Roger (Working Papers;19/2004, Working paper, 2004)
    It is almost common knowledge that foreign trade in Europe is characterized by an acceptance of prices set by the world market. Coupled with a constant profit share in domestic sectors this makes European exports vulnerable ...
  • Consumption and Population Age Structure 

    Erlandsen, Solveig K.; Nymoen, Ragnar (Working Papers;22/2004, Working paper, 2004)
    In this paper the effects on aggregate consumption of changes in the age distribution of the population are analysed empirically. Economic theories predict that age influences individuals’ saving and consumption behaviour. ...
  • The Ownership Structure of Repurchasing Firms 

    Skjeltorp, Johannes A.; Ødegaard, Bernt-Arne (Working Papers;7/2004, Working paper, 2004)
    This paper provides an examination of the ownership structure in Norwegian firms that announced repurchase plans during the period 1999 through 2001, as well as for groups of these firms conditional on whether they actually ...
  • Ownership Structure and Stock Market Liquidity 

    Næs, Randi (Working Papers;6/2004, Working paper, 2004)
    This paper studies the relationship between company ownership and market liquidity using a panel regression approach. The data sample contains detailed transactions data from a limit order driven stock market, and a full ...
  • Modelling Inflation in the Euro Area 

    Jansen, Eilev S. (Working Papers;10/2004, Working paper, 2004)
    The paper presents an incomplete competition model (ICM), where inflation is determined jointly with unit labour cost growth. The ICM is estimated on data for the Euro area and evaluated against existing models, i.e. the ...
  • Downward Nominal Wage Rigidity in the OECD 

    Holden, Steinar; Wulfsberg, Fredrik (Working Papers;5/2004, Working paper, 2004)
    This paper explores the existence of downward nominal wage rigidity (DNWR) in 19 OECD countries, over the period 1973–1999, using data for hourly nominal wages at industry level. Based on a novel nonparametric statistical ...
  • Cross-Boarder Diversification in Bank Asset Portfolios 

    Buch, Claudia M.; Driscoll, John C.; Østergaard, Charlotte (Working Papers;11/2004, Working paper, 2004)
    Taking the mean-variance portfolio model as a benchmark, we compute the optimally diversified portfolio for banks located in France, Germany, the U.K., and the U.S. under different assumptions about currency hedging. We ...
  • House Prices in Norway 1819–1989 

    Eitrheim, Øyvind; Erlandsen, Solveig K. (Working Papers;21/2004, Working paper, 2004)
    Annual house price indices for four Norwegian cities are presented for the period from 1819 to 1989. The indices are constructed on the basis of nominal housing transaction prices compiled from the real property registers ...
  • Testing for a Time-Varying Price-Cost Markup in the Euro Area Inflation Process 

    Bowdler, Christopher; Jansen, Eilev S. (Working Papers;9/2004, Working paper, 2004)
    Empirical models of inflation often incorporate equilibrium correction effects based upon levels of prices and input costs. Such models assume that the steady-state price-cost markup is constant, but recent research suggests ...
  • Oil Wealth and Real Exchange Rates: The FEER for Norway 

    Akram, Q. Farooq (Working Papers;16/2004, Working paper, 2004)
    It is often argued that Norway’s sizeable net foreign assets based on its petroleum wealth imply an appreciation of its real exchange rate to a permanently strong level. We investigate this issue within the framework of ...
  • En effisient handlingsregel for bruk av petroleumsinntekter 

    Akram, Q. Farooq (Working Papers;17/2004, Working paper, 2004)
    Denne artikkelen undersøker hvor mye vi bør bruke av petroleumsinntektene hvis vi samtidig skal minimere kostnadene ved å bruke dem. Slike kostnader forbindes med sektoromstillinger som ikke kan opprettholdes og må reverseres ...
  • Who Was in the Driving Seat in Europe During the Nineties, International Financial Markets or the BUBA? 

    Hammersland, Roger (Working Papers;20/2004, Working paper, 2004)
    The purpose of this paper is to reexamine empirically the relationship between long-term interest rates in well integrated financial markets. The analysis focuses on long-term interest rates in the US and Germany and has ...
  • Firm-Specific Investment, Sticky Prices, and the Taylor Principle 

    Sveen, Tommy; Weinke, Lutz (Working Papers;12/2004, Working paper, 2004)
    According to the Taylor principle a central bank should adjust the nominal interest rate by more than one for one in response to changes in current inflation. Most of the existing literature supports the view that by ...
  • Liquidity Provision in the Overnight Foreign Exchange Market 

    Bjønnes, Geir Høidal; Rime, Dagfinn; Solheim, Haakon O. Aa. (Working Papers;13/2004, Working paper, 2004)
    We presents evidence that non-financial customers are the main liquidity providers in the overnight foreign exchange market using a unique daily data set covering almost all transactions in the SEK/EUR market over almost ...
  • A European-Type Wage Equation from an American-Style Labor Market: Evidence from a Panel of Norwegian Manufacturing Industries in the 1930s 

    Bårdsen, Gunnar; Doornik, Jurgen; Klovland, Jan Tore (Working Papers;4/2004, Working paper, 2004)
    Using a newly constructed panel of manufacturing industry data for interwar Norway, we estimate a long-run wage curve for the 1930s that has all the modern features of being homogeneous in prices, proportional to productivity, ...

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