Helsinki Center of Economic Research (HECER) discussion papers

 

ISSN 1795-0562

Recent Submissions

  • Ledyayeva, Svetlana (HECER, Helsinki Center of Economic Research, 2016)
    HECER, Discussion Paper, No. 405
  • Salonen, Hannu (HECER, Helsinki Center of Economic Research, 2016)
    HECER, Discussion Paper, No. 404
  • Gillanders, Robert; Neselevska, Olga (HECER, Helsinki Center of Economic Research, 2016)
    HECER, Discussion Paper, No. 403
  • Huotari, Antti (HECER, Helsinki Center of Economic Research, 2016)
    HECER, Discussion Paper No. 402
  • Halko, Marja-Liisa; Miettinen, Topi (HECER, Helsinki Center of Economic Research, 2016)
    HECER, Discussion Paper No. 401
  • Hämäläinen, Saara (HECER, Helsinki Center of Economic Research, 2016)
    HECER, Discussion Paper No. 400
  • Hämäläinen, Saara (HECER, Helsinki Center of Economic Research, 2016)
    HECER, Discussion Paper No. 399
  • Hämäläinen, Saara (HECER - Helsinki Center of Economic Research, 2016)
    HECER, Discussion Paper No. 398
  • Pönkä, Harri (HECER - Helsinki Center of Economic Research, 2015)
    HECER, Discussion Paper 397
  • Halko, Marja-Liisa; Sääksvuori, Lauri (HECER - Helsinki Center of Economic Research, 2015)
    HECER Discussion Paper No. 396
  • Silvo, Aino (HECER - Helsinki Center of Economic Research, 2015)
    HECER Discussion Paper No.395
    I analyse the dynamics of a New Keynesian DSGE model where the financing of investments is affected by a moral hazard problem. I solve for jointly Ramsey-optimal monetary and macroprudential policies. I find that when there is a financial friction besides the standard nominal friction, the optimal policy can replicate the first-best if the social planner can conduct both monetary and macroprudential policy to control both inflation and the level of investments. Using monetary policy alone is not enough to fully stabilise the economy: it leads to a policy trade-off between stabilising inflation and the output gap. When policy follows simple rules instead, the source of fluctuations is highly relevant for the choice of the appropriate policy mix. JEL Classification: E32, E44, E52, G28 Keywords: monetary policy, macroprudential policy, financial frictions
  • Puonti, Päivi (HECER – Helsinki Center of Economic Research,, 2015)
    HECER Discussion Paper No. 394
    This paper estimates the effects of fiscal policy shocks on GDP in the United States with a vector error correction (VEC) model where shocks are identified by exploiting the nonnormal distribution of the model residuals. Unlike previous research, the model used here takes into account cointegation between the variables and identifies fiscal policy shocks without imposing any restrictions. The approach also allows statistical testing of previous identification strategies, which may help discriminate between them and hence also explain differences between various fiscal multiplier estimates. According to the results, a deficit financed government spending shock has a weak negative effect on output, whereas a tax raise to finance government spending has a positive impact on GDP.
  • Kanniainen, Vesa; Ringbom, Staffan (HECER - Helsinki Center of Economic Research, 2015)
    HECER Discussion Papers No. 393
    The paper introduces a welfarist approach to the national safety of a nation with membership in a defense alliance as an option. The members are risk averse but heterogeneous in their safety classification. There are two public goods as insurance devices, the domestic military budget and the incremental safety provided by the membership in the alliance. The commitment of the alliance in the creation of safety is,however, imperfect. A sufficient condition is stated for the non-membership. Under a positive option value of the membership, several adverse incentive effects shaping the option value are identified, including the incentive to free ride in domestic defense investment and a moral hazard effect in terms of national commitment to the defense effort. The cost of participation is determined in the spirit of the median voter theorem. The alliance equilibrium is shown to be of two potential types, a stable alliance equilibrium with a positive mass and or a degenerate one with one member only. The driving force in the adjustment of the alliance is its size relative to the safety class of the median voter. Expectations of the decision making of the co-members concerning the commitment can result in multiple equilibria.
  • Gillanders, Robert; Parviainen, Sinikka (HECER - Helsinki Center of Economic Research, 2015)
    HECER Discussion Paper No. 392
    The links between corruption and the shadow economy have mostly been studied empirically at the country level. This paper contributes to this literature by examining the relationship at the sub-national level. Using World Bank Enterprise Survey data, we find that sub-national units in which more firms report that corruption is an obstacle to their operations also tend to have more firms that report informal competitors as an obstacle and vice versa. We also ask whether within country variation matters and find that regions with a bigger problem in one of these dimensions than their national average also tend to have a relatively bigger problem in the other dimension. Sub-Saharan Africa is different in that neither of these findings are evident in that sub-sample.
  • Breen, Michael; Gillanders, Robert; McNulty, Gemma; Suzuki, Akisato (HECER - Helsinki Center of Economic Research, 2015)
    HECER Discussion Paper No. 391
    Are women less corrupt in business? We revisit this question using firm-level data from the World Bank’s Enterprise Surveys, which measure firms’ experience of corruption and the gender of their owners and top managers. We find that women in positions of influence are associated with less corruption: female-owned businesses pay less in bribes and corruption is seen as less of an obstacle in companies where women are represented in top management. By providing evidence that women are, ethically at least, good for business our research contributes to the literature on development, gender equality, and corruption more generally.