http://repub.eur.nl/res/aut/3319/ List of Publications en http://repub.eur.nl/static-eur/img/logo.png http://repub.eur.nl http://repub.eur.nl/res/pub/37531/ 2012-12-01T00:00:00Z The equity premium is a key parameter in asset allocation policies. There is a vigorous debate in the literature regarding the actual measurement of the equity premium, its size and the determinants of its variation. This study aims to take stock of this literature by means of a meta-analysis. We identify how the size of the equity premium depends on the way it is measured, along with its evolution over time and its variation across regions in the world. We find that the equity premium is significantly lower if measured by ex ante methods rather than ex post, in more recent periods, and for more developed countries. In addition, looking at the underlying fundamentals, we find that larger volatility in GDP growth tends to raise the equity premium while a higher nominal interest rate has a negative impact on the equity premium. http://repub.eur.nl/res/pub/26601/ 2011-06-27T00:00:00Z This article empirically investigates the contribution of different forms of diplomatic representation to the bilateral trade flows (both exports and imports) of a group of 63 countries. The authors report on the construction of a data set that covers 10,524 diplomatic representations. They use these representations as one of the explanatory variables in an applied trade model (the gravity model) for 3,730 bilateral trade flows in order to measure to what extent these representations are economically effective, in the sense that they are associated with larger trade flows. The authors distinguish different forms of international representation in the field of economic diplomacy (such as honorary and career consulates, embassies and embassy branches, and trade and other offices) and find positive and highly significant effects for embassies but mixed results for the other forms of representation. Finally, the authors provide a comparative perspective on the effectiveness of the 63 countries' foreign services and classify the countries according to the average performance of their network of foreign representations. http://repub.eur.nl/res/pub/837/ 2003-09-08T00:00:00Z The question of whether economic growth will ultimately resolve environmental problems has recently been discussed in a mainly empirical literature. One of the mechanisms that can explain the finding of an inverted U-shaped relationship between income and emissions relies on the changes in the sectoral composition of economies associated with economic growth. This paper develops a multi-sector general-equilibrium model to study the dynamic relationships between technological progress, economic development, the sectoral composition of economies and emissions. In the model, structural change is the outcome of a complex interplay between factors of demand and supply, and results from both differences in technological progress on a sectoral level and from differences in income elasticities of demand for different goods. We will derive under what conditions such changes can give rise to a hump-shaped relationship between per capita income and emissions. http://repub.eur.nl/res/pub/820/ 2003-09-04T00:00:00Z This paper studies the adoption and diffusion of energy-saving technologies in a vintage model. An important characteristic of the model is that vintages are modeled as being complementary: there are returns to diversity of using different vintages. We analyse how diffusion patterns and adoption behaviour are affected by complementarity and learning-by-using. It is shown that the stronger the complementarity between different vintages and the stronger the learning-by-using, the longer it takes before firms scrap (seemingly) inferior technologies. We argue that this is a potentially relevant part of the explanation of the energy-efficiency paradox. Furthermore we explore the effects of energy tax policies. http://repub.eur.nl/res/pub/826/ 2003-09-04T00:00:00Z In the literature, attention has been paid to the environmental consequences of lower energy prices caused by market liberalisation: the drop in energy prices reduces the attractiveness of investing in energy-saving technologies. In this paper we develop a simple model of investment decision-making emphasising the importance of not only levels but also volatility of energy prices for actual investment behaviour. The general finding is that lower energy prices and higher uncertainty reduce the propensity to invest. To empirically assess the importance of changes in both levels and volatility, we use US natural gas price data over the market liberalisation period and apply the information to the investment decision with respect to a specific energy-saving technology in the paper industry. We find that energy market liberalisation reduces the propensity to invest in energy-saving technologies substantially, not only because of the lower energy price but also because of its increased volatility. http://repub.eur.nl/res/pub/827/ 2003-09-04T00:00:00Z The diffusion of new technologies is a lengthy process and many firms continue to invest in relatively old technologies. This paper develops a vintage model of technology adoption and diffusion that aims at explaining these two phenomena. Our explanation for these phenomena emphasises the relevance of complementarity between different vintages (or, alternatively, returns to diversity) and learning-by- using. The model is characterised by simultaneous investments in vintages of different quality and endogenously determined scrapping of old technologies. We show that the stronger the complementarity between different vintages and the stronger the learning-by-using, the longer it takes before firms scrap (seemingly) inferior technologies. http://repub.eur.nl/res/pub/813/ 2003-09-02T00:00:00Z As part of the Kyoto Protocol, many countries have committed themselves to substantially reduce the emission of greenhouse gases within a politically imposed time constraint. Investment subsidies can be an important instrument to stimulate the adoption of energy-saving technologies to achieve emission reduction targets. This paper addresses the impact of adoption subsidies on the amount of energy savings, taking into account both the endogenous and uncertain nature of technological progress. Neglecting these two characteristics of technological progress tends to result in overestimation of the short-run effectiveness of investment subsidies, whereas the long-run effects are ambiguous. http://repub.eur.nl/res/pub/6817/ 2002-04-25T00:00:00Z Meta-analysis is a research method to synthesise previously obtained research results. It is best seen as a statistical approach towards reviewing and summarising the literature. This paper aims to introduce and critically review the research method of meta-analysis and to illustrate its potential use in applied economic policy analysis. Special attention will be paid to the possibilities for value transfer and the possibilities to improve the calibration of existing macroeconomic policy models. http://repub.eur.nl/res/pub/11900/ 2002-01-01T00:00:00Z Meta-analyse wordt in toenemende mate toegepast binnen de economische wetenschap. Er is op veel onderzoeksterreinen echter nog een wereld te winnen.