Spanish Economic History Research Papers (original) (raw)

This study analyzes the effect of corporate bond rating changes by international agencies on stock prices. This topic has not yet been analyzed for the Spanish stock market, despite the growing importance of ratings in Spanish financial markets. On an efficient market, rating changes will only have an effect if they contain some new information. The results from an event study indicate that rating actions cause significant negative abnormal returns in issuing firms around the date of the announcement. This evidence indicates an informational effect related to downgrades, which supports the hypothesis that credit rating agencies provide information that may reduce the asymmetric information problem between firms and investors. In the case of upgrades, our results are compatible with a redistribution of wealth between bondholders and owners or with the reputation hypothesis.

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- Economics, Stock Market, Event Study, Asymmetric Information

A dynamic general equilibrium model of a small open economy specialized in producing tourism services is presented. The tourism package is a bundle of attributes provided by firms, the government and the natural environment. Investment in accommodation increases the number of visitors but also congests public goods and reduces environmental quality. The model is used to determine the conditions for the existence of a long-term double dividend. These conditions depend on both the initial level of environmental quality and the responsiveness of the tourism price to marginal changes in environmental and accommodation quality and congestion of public goods.

- by javier lozano
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- Economics, Environmental policy, Public Good, Spanish Economic History

In this paper we try to provide additional insight into the problem of how to discriminate between the two most common spatial processes: the autoregressive and the moving average. This problem, whose analogous time series is apparently simple, acquires a certain complexity when it is considered in an irregular system of spatial units, mainly because there are few tools to carry out this discussion. Nevertheless, even with this lack, we believe that it is possible to make some progress using the methods available at present. In this paper we discuss the advantages and inconveniences of the different techniques that can help us to discriminate between both processes. We finish off the examination with a Monte Carlo exercise, and an application to the European regional income, which has enabled us to better understand the performance of several proposals such as the Lagrange Multipliers, the so-called Variance criterion and the tests of Vuong and Clarke.

- by Jesus Mur
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- Economics, Time Series, Monte Carlo, Spanish Economic History

The aim of this paper is to show the evolution of Spanish wheat output in the last decades of XK century. The paper evaluates both
the advances in statistical methods achieved by provincial agricultural scientists in the 80's, and the statistic consumption data published by the Ministry of Public Works in 1868. The main conclusión is that consumption and output of wheat between
1868 and 1890 were similar to those obtained for the period 1890-1896. This suggest that the Spanish and Italian cereal sectors behaved quite alike. The paper also proves that the tariff aproved by Cánovas had a powerful effect on the wheat pattern of consumption of the Spanish peasantry.

- by Rafael Barquín
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- Agrarian History, Spanish Economic History

La presente comunicación intentará presentar las principales hipótesis y conclusiones que la historiografía regional ha planteado para este periodo, todavía hoy precariamente
conocido y escasamente investigado.
El orden expositivo adoptado se articula en dos grandes bloques. El primero muestra una síntesis cronológica y por fases del tipo de políticas adoptadas por la dictadura en el plano económico. En el segundo bloque, por su parte, se hará referencia a las
consecuencias que las políticas autárquicas tuvieron para la economía y población.

- by Aarón León Álvarez
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- Agricultural Economics, Social History, Spanish Civil War, Historia Social

La primera multinacional española en sus momentos más difíciles
La embajada en Manila hizo una gran exposición sobre Tabacalera que comisarió Martín Rodrigo. Me centré en los años de la Mancomunidad, 1935-1945, los más difíciles tras haber dado un record de beneficios desde el final de la I Guerra Mundial, con incrementos anuales del 17% a cuenta de las ventajas de las exportaciones Filipinas a Estados Unidos. El estallido de la Guerra Civil española hizo mucho daño, por la interrupción del comercio con España pero también por los préstamos que hubo de hacer al régimen de Franco. Y después, con el estallido de la Guerra Mundial y la ocupación japonesa, pérdida de bienes y cosechas, muerte de sus rabajadores y la solicitud de un préstamo al régimen de Franco que no se les concedió. Ramon Serrano Suñer se acordaba de las visitas que le hicieron cuando era ministro de Exteriores.

El Santander-Mediterráneo era la más obvia de las líneas transversales que debían cerrar el mapa de los grandes ferrocarriles de España. Sin embargo, tenía un serio problema: atravesaba regiones con muy poca población y actividad económica, por lo que sólo podía justificarse por el tráfico a larga distancia entre Cantabria y Valencia. Después de un tortuoso proceso político y administrativo las obras comenzaron en 1925. Cuatro años más tarde gran parte de la línea, entre Calatayud y las Merindades de Burgos, estaba en explotación. Pero a pesar del esfuerzo realizado en la excavación del gran túnel de La Engaña, nunca se terminó el tramo final. En 1984 la línea fue clausurada. El Santander-Mediterráneo fue un ferrocarril de incierta utilidad social que nunca pudo servir a los fines para los que había sido diseñado.

Este artículo, que repasa la situación de la Hacienda pública española a finales del siglo XIX, se publicó en el año 1999 como introducción al monográfico sobre el centenario del paso de Raimundo Fernández Villaverde por el Ministerio de... more

The council of Cordoba, like all other late Middle Ages Castilian councils, had to face many ordinary as well as extra ordinary expenses at the end of middle Ages. In this project, it is offered an analysis of the different payments that the tax office of the council of Cordoba should face during the second half of the 15 th century. Among them, there can be considered the following: wages of the different council officers, the internal coasts of the functioning of the own city bureaucracy, the annual parties, the maintenance of the public works emphasizing in the defensive network, the situations of military urgencies, or simply, debts and loans. The aims of this study is to approximate to the knowledge of the situation the Cordoba tax office at the late middle ages.

- by Javier López Rider
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- History, Economic History, Late Middle Ages, Medieval History

Resumen: El presente artículo estudia la Escuela Industrial de Artesanos de Valencia desde su fundación hasta su supresión. Iniciativa surgida de la diputación provincial contó desde el primer momento con la colaboración del claustro de profesores del instituto de enseñanza media, aunque tuvo un éxito irregular dependiendo de las circunstancias políticas. Sin embargo, la labor de dicha escuela y su independencia como institución pública despertaron los recelos de los patronos de la ciudad de Valencia, que intentaron controlar el acceso de los trabajadores a este tipo de enseñanza para fortalecer las relaciones de clientelismo en sus empresas. 1 Este artículo ha sido posible gracias al proyecto de investigación LAS BASES SO-CIALES DEL ESTADO Y LA TRAYECTORIA DE LA SOCIEDAD CIVIL EN LA ES-PAÑA DEL SIGLO XIX, 1840-1880 HAR2012-36318. Asimismo, agradezco a los profesores M.ª Cruz Romeo, Jesús Millán y Albert García Balañà los comentarios aportados para su mejora.

- by Carles Sirera
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- History of Education, Spanish History, Social History, Contemporary Spanish History

Hay dos propósitos en este trabajo. Por un lado, se intenta hacer una estimación del impacto económico del turismo sobre el negocio ferroviario en la segunda mitad del siglo XIX. Para la compañíaNorte, pero sólo para ella, ese efecto parece haber sido bastante significativo. En segundo lugar, trata de averiguar hasta qué punto el ferrocarril condicionó el desarrollo del sector y, en particular, el éxito o fracaso de determinados destinos turísticos. En general, los ferrocarriles satisficieron una demanda latente, pero no tuvieron efectos hacia delante en el sector turístico. Por eso no fueron un factor determinante en la localización de los principales destinos.

The aim of this paper is to study the process of integration of the XIX century Spanish market of wheat Basically, integration grew until the middle of the XIX century, and decreased from then. The growth of agricultural production and the reduction of transport costs explain the improvement of integration in the period 1830/50. The process
of disintegration is more enigmatic, but the advent of railway does not seem to have contributed to building the national market On the contrary, it could be the cause of that disintegration, in spite of the fact that it improved the connection of some markets.

The main goal of this paper is to analyze the behavior of the ECM noncointegration test when there are additive outliers in the time series under different co-breaking situations. We show that the critical values of the usual ECM test are not robust to the presence of transitory shocks and we suggest a procedure based on signal extraction to bypass this problem. These procedure renders ECM tests with a left tail of distribution under the null that is robust to the presence of additive outliers in the series. The small sample critical values and the empirical power of the test are analyzed by Monte Carlo simulations for several low frequency filters. The proposed empirical methodology is applied to the CPI-based US/Finland real exchange rate. JEL Classification: C22, C12, C15, C52, C51

- by Miguel Arranz
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- Economics, Monte Carlo Simulation, Time Series, Low Frequency

Most of the countries of the OECD offer quarterly estimates of their national growth or of their Gross National Product. Official Statistical Agencies in western countries have to deal with the problem of estimating Quarterly National Accounts series congruently with Annual National Accounts. In Spain, the Instituto Nacional de Estadística uses the Chow-Lin disaggregation method, which is based on information provided by a group of high-frequency related variables, to estimate the quarterly components of National Accounts from annual components. In this paper, we analyse the relative quality of the estimates obtained through the Chow-Lin procedure, under different sets of hypotheses. JEL Classification C15, C43, M40

- by Jose Manuel Pavia
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- Economics, Time Series, Monte Carlo, High Frequency

El objeto de este trabajo es doble. En primer lugar, se efectúa una estimación del ahorro social en España en 1878, teniendo en cuenta: 1º diversas noticias sobre los precios del transporte en el sistema tradicional; 2º las posibilidades de la complementación entre la navegación de cabotaje, la navegación fluvial y el transporte carretil; 3º el empleo de la tarifa media ferroviaria en lugar de la tarifa de servicio. El resultado es de tan sólo un 1,5% de la renta nacional, sensiblemente inferior al único presentado hasta ahora (Gómez Mendoza, 1982).
En una segunda parte, se intenta estimar cuál pudo haber sido la evolución de dicho ahorro en la segunda mitad del siglo XIX, tomando como punto de referencia el cálculo anterior. Como cabía esperar, el ahorro social fue creciente, pero partiendo de niveles muy bajos. Hacia 1868 podría haber sido de tan sólo un 0,8% de la renta nacional, lo que viene a ser poco más de las subvenciones anuales concedidas por el Gobierno en el sexenio 1861-66. Lo que se desprende de todo ello es que la red básica ferroviaria fue construida con demasiada anticipación, por lo que los beneficios de la misma no pudieron percibirse hasta mucho tiempo después.

The principal aim of this paper is to estimate the cost of Spanish road transport at the end of the 19th century, from data provided by a government questionnaire sent to the village mayors. This information had already been used before for the same purpose (Gómez Mendoza, 1982), but that calculation contained several numerical and documentary errors, and its results had been misinterpreted. The new estimate is half the cost of the previous one (or a third in some other cases, depending on the interpretation).

The paper is based on four main documentary sources. Firstyly, a 1857 Barcelona-Saragossa Railway Company report on the business expectations, before the line was constructed. Secondly, the Annual Accounts of 1864 and other statistics reported by the company’s Board of Directors. Thirdly, the 1857 and 1858 Statistics of Road Transport filled in by several councils of the province of Saragossa. Finally, the prices of Aragonese wheat sold in Barcelona and others cities. From the study of these sources we conclude that one of the main problems of the Barcelona to Saragossa railway company (and, perhaps, of other Spanish ones) was the competition of traditional systems of transport; mainly the wheelwright.

In this article I hold that there isn’t evidence of collusion in the trade of flour and wheat in the 19th century Reinosa´s route. Therefore, these practices did not affect to the international competitiveness of these goods. The study covers sixty years of the history of several regional industries and services, from the purchase of wheat in Castile to the sale of flour in Catalonia, Cuba and Europe. The article refutes some previous research: Javier Moreno (1995 and others) and Andrés Hoyo (1993 and 1999). In order to do it I have made a new estimate of the 'income of intermediation' and I have analyzed the wheat prices series in Castile and the exports of flour from Santander.

- by Rafael Barquín
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- Economic History, Spanish Economic History
- by ANTONIO TENA JUNGUITO
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- Spanish Economic History, Trade protectionism
- by Sonia Sanabria and +1
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- Economics, Stock Market, Spanish Economic History, Business Cycle

This paper reviews the long political and bureaucratic choice process of the Central Range crossing point for the Madrid-France (North) railway. The Avila route was eventually selected. However, it was the wrong decision as there was already a better route; the construction of a three kilometers tunnel in the Sierra of Guadarrama (province of Segovia). Most likely the cost of the tunnel would have been lower than the estimated budget; but, above all, the railway operating costs for the Avila route were notably greater than the Segovia one.

Since the 1990s, the international fashion market has been increasingly influenced by the so-called fast fashion, a business model characterized by rapidly producing a wide variety of garments, which are continually renewed, with designs that follow the latest fashion trends at low prices. e Spanish business group Inditex, parent company of the Zara brand, is the one that has best developed this business model, becoming the world's largest fashion retailer. In 2019, with almost 180,000 employees and 7,500 stores spread over a hundred countries, its sales exceeded 28,000 million euros. is article analyzes the trajectory of Inditex, from its origins, in the early 1960s, to the present, showing the different stages of its evolution and delving into the causes of its success. e article pays special attention to Inditex's sources of competitive advantage, which are also key to understanding the recent international success of other Spanish fashion companies. In recent years, all these companies have had to face very strong international competition and adapt to the profound changes caused by e-commerce.

- by Javier Andres and +1
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- Economics, International Marketing, Monetary Policy, Exchange rate

Malgrat la seva rellevància a la banca barcelonina del primer terç del segle xx, la figura de Josep Garí Gimeno ha estat relativament poc estudiada. A banda del seu paper al capdavant de la banca Arnús-Garí i de diverses empreses, Josep Garí va ser pròxim a Francesc Cambó i Joan Ventosa. Després de fugir de Barcelona durant la guerra civil, va donar suport al règim franquista durant la resta de la seva vida, si bé les seves relacions amb aquest no van estar exemptes de friccions, incloent-hi un episodi que el va portar deu dies a la presó l’any 1953. L’estudi de Josep Garí s’emmarca també en el conflicte entre els sistemes borsaris de Madrid i Barcelona durant el primer terç del segle xx, que es va resoldre a favor de la capital amb el final de la guerra civil.

- by Santiago Gorostiza
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- Catalan History, Spanish Civil War, Contemporary Spanish History, Barcelona

Se estudia la capacidad óptima y la localización óptima de una secuencia de vertederos, y se señalan las interacciones entre ambas decisiones. La decisión de capacidad de un vertedero tiene implicaciones espaciales, porque afecta a la región factible para el resto de los vertederos, e implicaciones temporales, porque la capacidad determina la vida útil del vertedero y, por tanto, el instante de tiempo en que será preciso instalar uno nuevo. Se obtienen algunas propiedades matemáticas generales del problema y se interpretan económicamente. El problema resultante resulta ser no convexo y, por tanto, no se puede resolver por métodos tradicionales de optimización. Se resuelve un caso particular mediante métodos de optimización global a fin de ilustrar el comportamiento de la solución dependiendo del valor de los parámetros del modelo.

- by Luis Abril and +1
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- Economics, Global Optimization, Spanish Economic History, OPTIMIZATION TECHNIQUE

Una de las principales características del periodo histórico conocido como Antiguo Régimen fue la pervivencia de gran parte del andamiaje jurídico del feudalismo. En teoría, las leyes continuaban reconociendo la existencia de la división de la propiedad agrícola en un dominio útil, el derecho de disponer de las tierras para trabajarlas y cultivarlas que detentaban las familias de agricultores que pagaban un censo por ellas, y el dominio directo, un derecho de posesión no efectiva que retenía un noble o una corporación religiosa; pero, a lo largo de los años, habían surgido nuevos modos de explotación y trabajo de la tierra que habían terminado por producir una coexistencia de formas diversas de propiedad que había desdibujado por completo el sentido originario de aquellas divisiones 1 .

Although it has been argued that Cameralism had a prominent place in the formation of the modern economic mind and that public happiness was a crucial intersection of early modern economic discourses, its (re) discovery by mainstream economics has been considered partial and unconvincing. Therefore, it is crucial to understand that it was in the aftermath of the political and economic crisis of the Thirty Years’ War that happiness was established at the core of the foundations of Spanish Imperialism in the 1650s and then again in the 1760s. The text Signs of Happiness by Francesc Romà i Rossell (1768) is the best thread to reconstruct the evolution of Spanish imperialism. It spins the thread from the 1650s when happiness expanded the public sphere until the publication of his proposal where happiness is defined as the ability to recover from the decline through internal development and the improvement of agriculture, industry, and commerce. It is then when happiness and Cameralist teachings came together to sharpen Romà i Rossell’s science of government to transform the monarchy and underpin the creation of the Spanish nation.

We compare the transmission mechanism of exogenous and endogenous monetary policies in a calibrated small open economy model with nominal and real rigidities. Under an exogenous monetary policy rule it takes implausible values of the intertemporal elasticity of substitution and the price adjustment costs to generate the liquidity and overshooting effects. Endogenous rules with strong feedback to inflation and output help to reproduce the response of the nominal interest and exchange rates to unanticipated monetary policy shocks that characterize the transmission mechanism of standard sticky price models. The liquidty and overshooting effects are always obtained when the model is augmented with a Taylor interest rate rule.

- by Javier Andres
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- Economics, Monetary Policy, Exchange rate, Spanish Economic History

This article carries out an empirical examination of the origin of the differences between immigrant and native-born wage structures in the Spanish labour market. Special attention is given in the analysis to the role played by occupational and workplace segregation of immigrants. Legal immigrants from developing countries exhibit lower mean wages and a more compressed wage structure than native-born workers. By contrast, immigrants from developed countries display higher mean wages and a more dispersed wage structure. The main empirical finding is that the disparities in the wage distributions for the native-born and both groups of immigrants are largely explained by their different observed characteristics, with a particularly important influence in this context of workplace and, specially, occupational segregation.

- by Raul Ramos
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- Economics, Developing Country, Labour Market, Spanish Economic History

The article presents and discusses long-run series of per capita GDP and life expectancy for Italy and Spain (1861-2008). After refining the available estimates in order to make them comparable and with the avail of the most up-to-date researches, the main changes in the international economy and in technological and socio-biological regimes are used as analytical frameworks to re-assess the performances of the two countries; then structural breaks are searched for and Granger causality between the two variables is investigated. The long-run convergence notwithstanding, significant cyclical differences between the two countries can be detected: Spain began to modernize later in GDP, with higher volatility in life expectancy until recent decades; by contrast, Italy showed a more stable pattern of life expectancy, following early breaks in per capita GDP, but also a negative GDP break in the last decades. Our series confirm that, whereas at the early stages of development differences in GDP tend to mirror those in life expectancy, this is no longer true at later stages of development, when, if any, there seems to be a negative correlation between GDP and life expectancy: this finding is in line with the thesis of a non-monotonic relation between life expectancy and GDP and is supported by tests of Granger causality.

- by Emanuele Felice
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- Economic History, Italian Studies, Economic Growth, Convergence

This work explores the inequality of wealth in Spain during the late Middle Ages from six cities located in the kingdoms of Castile (Seville) and the Crown of Aragon (Barcelona, Valencia, Mallorca, Castelló and Valls), through tax sources that inform about the wealth of each taxpayer. These records provide very precise data on the wealth distribution that allow us to study inequality in an aggregate manner for the same city and, at the same time, perform sectoral analyses according to gender, different socio-professio¬nal groups and urban districts.

- by Luis Almenar Fernández and +1
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- Economic History, Economic Inequality, Iberian Peninsula, Spanish Economic History

The aim of this study is to determine whether the high level of technological innovation detected in Spain’s industrial districts is, as the theory states, an intrinsic characteristic of these districts that was present in all stages of their evolution. To that end, and using figures on the number of patents filed, the trajectory of innovation is analysed for the 1878-1935 period for ten of the main industrial districts in Spain that had already become industrial districts in the early 20th century. The result supports the thesis that the capacity to innovate is an essential characteristic of industrial districts and clusters, but also shows that there were large differences between them in their propensity to innovate, linked to differences in human capital, sectoral specialisation and proximity to environments with a higher level of technological knowledge, among other factors.

In this paper we estimate a standard version of the New Keynesian Monetary (NKM) model augmented with term structure in order to analyze two issues. First, we analyze the effect of introducing an explicit term structure channel in the NKM model on the estimated parameter values of the model, with special emphasis on the interest rate smoothing parameter using data for the Eurozone. Second, we study the ability of the model to reproduce some stylized facts such as highly persistent dynamics, the weak comovement between economic activity and inflation, and the positive, strong comovement between interest rates observed in actual Eurozone data. The estimation procedure implemented is a classical structural method based on the indirect inference principle.

- by Jesús Vázquez
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- Economics, Spanish Economic History, Indirect Inference, Interest Rate

This paper surveys recent work on endogenous fertility and endogenous growth. These models provide the building blocks for a theory of development. They are capable of explaining income and fertility differentials between rich and poor countries. They can produce switching behavior, countries that transform themselves from no growth economies into high growth economies. The fertility and growth effects of social security programs are also examined. Finally models with increasing returns to population are presented. They are capable of reproducing very long term relationships between human capital, fertility and economic growth.

- by Robert Tamura
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- Economics, Economic Growth, Economic Development, Human Capital

Publicado en Juan Pablo Fusi y Genoveva García (eds.), Cartas al Rey. La mediación humanitaria de Alfonso XIII en la Gran Guerra, Madrid, Patrimonio Nacional/Santander Fundación, 2018, pp. 97-115. "la guerra (…) ha hecho vibrar las fibras más escondidas de nuestra alma, ha removido todas las rutinas y ha puesto a nuestro pueblo en el trance, para muchos insoportable, para todos grave, de fallar y tomar partido en un problema moral"

- by Javier Moreno-Luzón
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- Intellectual History, Public Opinion, Spanish History, Political History

Session Organizers: Giovanna Montenegro (Binghamton) & Nicole Legnani (Princeton) Of the relationship between entrepreneurs and empire, Octavio Paz wrote, " The conquistadors undertook the Conquest at their own risk; in a way, it was a private undertaking. But it was also an imperial enterprise. " Since Columbus, the Spanish Conquest of the Americas was often carried out by private financiers and a mercantile economy that bordered on " venture capital. " Crónica writers such as Bartolomé de Las Casas were often critical of the private, " foreign " capital with which the conquest was financed. Anxiety about foreign agents (Genoese and German bankers, for example) was often more complicated when those agents were considered heretical (as in the case of the Welser bankers from Augsburg). Moving beyond the economic history presented in Ramón Carande Thobar's 1949 Carlos V y sus Banqueros this panel seeks new approaches to old economic problems. How can we view the conquest of the Americas through private capital? How did indigenous groups handle and create wealth after the conquest? What metaphors and symbols appear for money and the finances in canonical crónicas and relaciones? What is the value of taking a Marxist perspective in reevaluating old problems? This panel seeks papers that respond to these (and other) questions and take new cultural approaches to the financing of conquest.

- by Laura Dierksmeier and +1
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- Latin American Studies, Latin American Economic History, Spanish Economic History

We evaluate the management of the Northern Stock of Hake during 1986-2001. A stochastic bioeconomic model is calibrated to match the main features of this fishing ground. We show how catches, biomass stock and profits would have been if the optimal Common Fisheries Policy (CFP) consistent with the target biomass implied by the Fischler's Recovery Plan had been implemented. The main finding are: i) an optimal CFP would have generated profits of more than 667 millions euros, ii) if side-payments are allowed (implemented by ITQ's, for example) these profits increase 26%.

Modern theory on interest rate rules is based on the representative agent framework with infinite-horizon consumers, thereby ignoring redistributions of the fiscal burden across generations due to deficit shocks. We show how the 'Taylor principle' relies on this restrictive assumption. In a dynamic New Keynesian general equilibrium model with overlapping generations, the existence of a unique stable rational expectations equilibrium may also occur under a passive monetary policy. However, active monetary policy is still required to stabilize the economy in response to fiscal shocks.

Este artículo aborda dos aspectos importantes en la elaboración de las políticas fiscales durante la Restauración: la posición central del Parlamento en la toma de decisiones político-fiscales y las relaciones entre los partidos con representación parlamentaria y los grupos de presión. En 1916 el ministro de Hacienda Santiago Alba intentó incorporar al sistema tributario español un impuesto sobre los beneficios extraordinarios derivados, adoptado ya por la mayoría de los países beligerantes en la Primera Guerra Mundial y por algunos neutrales. El Proyecto de ley sucumbió en el Congreso de los Diputados debido a la obstrucción de un nutrido conjunto de diputados liderado por la Lliga Regionalista.

This paper compares the performance of a log-linear method and a parameterized expectations method in solving a dynamic general equilibrium endogenous growth model with human capital. Quantitative evaluation based on second moment statistics shows that the results provided by the two numerical methods are very similar in this framework whenever the propagation mechanism of technology shocks is weak. However, the cross correlations of some relevant variables in the RBC literature obtained from the two methods are signi…cantly di¤erent when the model exhibits a strong propagation mechanism. The parameterized expectations method captures the sensitiviness of second moment statistics to the curvature of the utility function while the log-linear method does not.

- by Amaia Iza and +1
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- Economics, Human Capital, Numerical Method, Cross Correlation