Pedro Duarte Neves

Labour supply and intertemporal substitution

Abstract This paper concerns the estimation of an intertemporal model for labour supply and consumption that recognises the presence of nonworkers and which is cast in a structural optimising framework that allows for uncertainty. Through the utilisation of a micro-data source that measures consumption and labour supply we are able to estimate a flexible preference model which incorporates corner solutions and uncertainty.

Evaluating Core Inflation Indicators

This paper proposes testable conditions that core inflation measures should satisfy. Trend inflation indicators calculated by Banco de Portugal are tested against this background. The major conclusion is that the so-called “underlying inflation”, the “10% trimmed mean”, and the “25% trimmed mean” do not meet the proposed conditions. However, they are satisfied by the “37-month centred moving average”, the “first principal component” and the “standard deviation weighted CPI” indicators. Yet, only the last two indicators can be used as useful core inflation measures, as the first one is not computable in real time.

A class of differential demand systems

Abstract The Rotterdam, Almost Ideal Demand System, CBS, and NBR models constitute a class of differential demand systems. They correspond to alternative assumptions made concerning the constancy of certain parameters. This paper discusses the restrictions that they impose on the evolution of demand elasticities over time.

Why Should Central Banks Avoid the Use of the Underlying Inflation Indicator

This paper assesses the usefulness of the commonly used underlying inflation indicator, in light of the criteria proposed in Marques et al. (2000). Empirical evidence for a group of six countries strongly suggets that the use of underlying inflation as an indicator of trend inflation should be avoided.

Towards a more general version of the almost ideal demand system

Abstract This note proposes a generalization of the Almost Ideal Demand System. Two independent parameters provide more flexibility to the shape of the Engel curves and to the form of the price effects.

Commodity Demands and Female Labour-Supply over the Life-Cycle

This paper outlines a methodology to identify the preference parameters that characterize household behaviour over the life-cycle, through the specification and estimation of a model of individual behaviour. The focus of this research is directed towards commodity demands, female labour supply and the intertemporal allocation of life- time wealth. Empirical estimates of the parameters of interest are reported at the end of this paper.

FEMALE LABOUR SUPPLY OVER THE LIFE-CYCLE

This note describes two alternative approaches to identify the parameters that characterize intertemporal female labour supply, allowing for uncertainty, nonparticipation and nonseparability. Econometric results indicate that the choice of functional forms is one of the most important issues in the empirical analysis of labour supply.