Project acronym ABEP
Project Asset Bubbles and Economic Policy
Researcher (PI) Jaume Ventura Fontanet
Host Institution (HI) Centre de Recerca en Economia Internacional (CREI)
Call Details Advanced Grant (AdG), SH1, ERC-2009-AdG
Summary Advanced capitalist economies experience large and persistent movements in asset prices that are difficult to justify with economic fundamentals. The internet bubble of the 1990s and the real state market bubble of the 2000s are two recent examples. The predominant view is that these bubbles are a market failure, and are caused by some form of individual irrationality on the part of market participants. This project is based instead on the view that market participants are individually rational, although this does not preclude sometimes collectively sub-optimal outcomes. Bubbles are thus not a source of market failure by themselves but instead arise as a result of a pre-existing market failure, namely, the existence of pockets of dynamically inefficient investments. Under some conditions, bubbles partly solve this problem, increasing market efficiency and welfare. It is also possible however that bubbles do not solve the underlying problem and, in addition, create negative side-effects. The main objective of this project is to develop this view of asset bubbles, and produce an empirically-relevant macroeconomic framework that allows us to address the following questions: (i) What is the relationship between bubbles and financial market frictions? Special emphasis is given to how the globalization of financial markets and the development of new financial products affect the size and effects of bubbles. (ii) What is the relationship between bubbles, economic growth and unemployment? The theory suggests the presence of virtuous and vicious cycles, as economic growth creates the conditions for bubbles to pop up, while bubbles create incentives for economic growth to happen. (iii) What is the optimal policy to manage bubbles? We need to develop the tools that allow policy makers to sustain those bubbles that have positive effects and burst those that have negative effects.
Summary
Advanced capitalist economies experience large and persistent movements in asset prices that are difficult to justify with economic fundamentals. The internet bubble of the 1990s and the real state market bubble of the 2000s are two recent examples. The predominant view is that these bubbles are a market failure, and are caused by some form of individual irrationality on the part of market participants. This project is based instead on the view that market participants are individually rational, although this does not preclude sometimes collectively sub-optimal outcomes. Bubbles are thus not a source of market failure by themselves but instead arise as a result of a pre-existing market failure, namely, the existence of pockets of dynamically inefficient investments. Under some conditions, bubbles partly solve this problem, increasing market efficiency and welfare. It is also possible however that bubbles do not solve the underlying problem and, in addition, create negative side-effects. The main objective of this project is to develop this view of asset bubbles, and produce an empirically-relevant macroeconomic framework that allows us to address the following questions: (i) What is the relationship between bubbles and financial market frictions? Special emphasis is given to how the globalization of financial markets and the development of new financial products affect the size and effects of bubbles. (ii) What is the relationship between bubbles, economic growth and unemployment? The theory suggests the presence of virtuous and vicious cycles, as economic growth creates the conditions for bubbles to pop up, while bubbles create incentives for economic growth to happen. (iii) What is the optimal policy to manage bubbles? We need to develop the tools that allow policy makers to sustain those bubbles that have positive effects and burst those that have negative effects.
Max ERC Funding
1 000 000 €
Duration
Start date: 2010-04-01, End date: 2015-03-31
Project acronym CHINA
Project Trade, Productivity, and Firm Capabilities in China's Manufacturing Sector
Researcher (PI) Johannes Van Biesebroeck
Host Institution (HI) KATHOLIEKE UNIVERSITEIT LEUVEN
Call Details Starting Grant (StG), SH1, ERC-2009-StG
Summary China s economy has expanded at breakneck speed to become the 3rd largest trading country in the world and the largest recipient of foreign direct investment (FDI). Entry into the WTO in 2001 was a landmark event in this ongoing process and I propose to study several channels through which it spurred China s industrial development. Crucially, I will take an integrated view of the different ways in which Chinese and Western firms interact: through trade flows, as suppliers or competitors, FDI, or knowledge transfers. First, I investigate the existence and magnitude of a causal link from the trade reforms to productivity growth. Second, I look for evidence of capability upgrading, such as increased production efficiency, an ability to produce higher quality products, or introduce new products by innovating. Third, I study the mechanisms for the impact of trade and FDI on local firms, in particular assessing the relative importance of increased market competition and the transfer of know-how from foreign firms. For this analysis, I draw heavily on a unique data set. Information on the universe of Chinese manufacturing firms is being linked to the universe of Chinese trade transactions. These are unique research tools on their own, but as a linked data set, the only comparable one in the world is for the U.S. economy. The Chinese data has the advantage to contain detailed information on FDI, distinguishes between ordinary and processing trade, and contains information on innovation, such as R&D and sales of new goods. Answering the above questions is important for other developing countries wanting to learn from China s experience and for Western firms assessing how quickly Chinese firms will become viable suppliers of sophisticated inputs or direct competitors. By estimating models that are explicitly derived from new theories, I advance the literature at the interaction of international and development economics, industrial organization, economic geography.
Summary
China s economy has expanded at breakneck speed to become the 3rd largest trading country in the world and the largest recipient of foreign direct investment (FDI). Entry into the WTO in 2001 was a landmark event in this ongoing process and I propose to study several channels through which it spurred China s industrial development. Crucially, I will take an integrated view of the different ways in which Chinese and Western firms interact: through trade flows, as suppliers or competitors, FDI, or knowledge transfers. First, I investigate the existence and magnitude of a causal link from the trade reforms to productivity growth. Second, I look for evidence of capability upgrading, such as increased production efficiency, an ability to produce higher quality products, or introduce new products by innovating. Third, I study the mechanisms for the impact of trade and FDI on local firms, in particular assessing the relative importance of increased market competition and the transfer of know-how from foreign firms. For this analysis, I draw heavily on a unique data set. Information on the universe of Chinese manufacturing firms is being linked to the universe of Chinese trade transactions. These are unique research tools on their own, but as a linked data set, the only comparable one in the world is for the U.S. economy. The Chinese data has the advantage to contain detailed information on FDI, distinguishes between ordinary and processing trade, and contains information on innovation, such as R&D and sales of new goods. Answering the above questions is important for other developing countries wanting to learn from China s experience and for Western firms assessing how quickly Chinese firms will become viable suppliers of sophisticated inputs or direct competitors. By estimating models that are explicitly derived from new theories, I advance the literature at the interaction of international and development economics, industrial organization, economic geography.
Max ERC Funding
944 940 €
Duration
Start date: 2010-02-01, End date: 2016-01-31
Project acronym ECHR
Project Strengthening the European Court of Human Rights: More Accountability Through Better Legal Reasoning
Researcher (PI) Eva Brems
Host Institution (HI) UNIVERSITEIT GENT
Call Details Starting Grant (StG), SH2, ERC-2009-StG
Summary Human rights are under pressure, in Europe as elsewhere, due to several developments, namely [1] War on terror: the pressures generated by competing discourses [2] Coping with the dangers of rights inflation [3] Conflicting rights: how to handle rights as contested claims [4] The challenges of dealing with universality under fire In this context, the human rights leadership of the European Court of Human Rights is of crucial importance. Yet the Court is not fit for purpose. Inconsistencies and sloppy legal reasoning undermine both its credibility and the impact of its decisions. The research programme that I propose will strengthen the consistency and persuasiveness of Court s legal reasoning so as to improve its accountability and transparency. My aim is to identify new technical solutions for important human rights problems, by the development and application of creative methodologies. The substantive innovations within the field of European human rights law that I propose to make are: [a] the development of new legal tools, which will consistently integrate the accommodation of the particularities of non-dominant groups into the reasoning of the European Court of Human Rights [b] the development of a new theoretical framework combining minimum and maximum approaches to human rights protection, followed by its translation into clear legal criteria for use by the European Court of Human Rights [c] the development of a script that will enable the adoption of a consistent approach by the European Court of Human Rights to conflicts between human rights My methodological approach is characterized by the combination of empirical and normative dimensions, a 360° comparison, and the integration of qualitative research methods (interviews and focus groups with key stakeholders).
Summary
Human rights are under pressure, in Europe as elsewhere, due to several developments, namely [1] War on terror: the pressures generated by competing discourses [2] Coping with the dangers of rights inflation [3] Conflicting rights: how to handle rights as contested claims [4] The challenges of dealing with universality under fire In this context, the human rights leadership of the European Court of Human Rights is of crucial importance. Yet the Court is not fit for purpose. Inconsistencies and sloppy legal reasoning undermine both its credibility and the impact of its decisions. The research programme that I propose will strengthen the consistency and persuasiveness of Court s legal reasoning so as to improve its accountability and transparency. My aim is to identify new technical solutions for important human rights problems, by the development and application of creative methodologies. The substantive innovations within the field of European human rights law that I propose to make are: [a] the development of new legal tools, which will consistently integrate the accommodation of the particularities of non-dominant groups into the reasoning of the European Court of Human Rights [b] the development of a new theoretical framework combining minimum and maximum approaches to human rights protection, followed by its translation into clear legal criteria for use by the European Court of Human Rights [c] the development of a script that will enable the adoption of a consistent approach by the European Court of Human Rights to conflicts between human rights My methodological approach is characterized by the combination of empirical and normative dimensions, a 360° comparison, and the integration of qualitative research methods (interviews and focus groups with key stakeholders).
Max ERC Funding
1 370 000 €
Duration
Start date: 2009-11-01, End date: 2014-10-31
Project acronym EDSGEL
Project Likelihood-based estimation of non-linear and non-normal DSGE models
Researcher (PI) Juan Francisco Rubio-Ramirez
Host Institution (HI) FUNDACION CENTRO DE ESTUDIOS MONETARIOS Y FINANCIEROS
Call Details Starting Grant (StG), SH1, ERC-2009-StG
Summary DSGE models are the standard tool of quantitative macroeconomics. We use them to measure economics phenomena and to provide policy advice. However, since Kydland and Prescott s 1982, the profession has fought about how to take these models to the data. Kydland and Prescott proposed to calibrate their model. Why? Macroeconomists could not compute their models efficiently. Moreover, the techniques required for estimating DSGE models using the likelihood did not exist. Finally, models were ranked very badly by likelihood ratio tests. Calibration offered a temporary solution. By focusing only on a very limited set of moments of the model, researchers could claim partial success and keep developing their theory. The landscape changed in the 1990s. There were developments along three fronts. First, macroeconomists learned how to efficiently compute equilibrium models with rich dynamics. Second, statisticians developed simulation techniques like Markov chain Monte Carlo (MCMC), which we require to estimate DSGE models. Third, and perhaps most important, computer power has become so cheap that we can now do things that were unthinkable 20 years ago. This proposal tries to estimate non-linear and/or non-normal DSGE models using a likelihood approach. Why non-linear models? Previous research has proved that second order approximation errors in the policy function have first order effects on the likelihood function. Why non-normal models? Time-varying volatility is key to understanding the Great Moderation. Kim and Nelson (1999), McConnell and Pérez-Quirós (2000), and Stock and Watson (2002) have documented a decline in the variance of output growth since the mid 1980s. Only DSGE models with richer structure than normal innovations can account for this.
Summary
DSGE models are the standard tool of quantitative macroeconomics. We use them to measure economics phenomena and to provide policy advice. However, since Kydland and Prescott s 1982, the profession has fought about how to take these models to the data. Kydland and Prescott proposed to calibrate their model. Why? Macroeconomists could not compute their models efficiently. Moreover, the techniques required for estimating DSGE models using the likelihood did not exist. Finally, models were ranked very badly by likelihood ratio tests. Calibration offered a temporary solution. By focusing only on a very limited set of moments of the model, researchers could claim partial success and keep developing their theory. The landscape changed in the 1990s. There were developments along three fronts. First, macroeconomists learned how to efficiently compute equilibrium models with rich dynamics. Second, statisticians developed simulation techniques like Markov chain Monte Carlo (MCMC), which we require to estimate DSGE models. Third, and perhaps most important, computer power has become so cheap that we can now do things that were unthinkable 20 years ago. This proposal tries to estimate non-linear and/or non-normal DSGE models using a likelihood approach. Why non-linear models? Previous research has proved that second order approximation errors in the policy function have first order effects on the likelihood function. Why non-normal models? Time-varying volatility is key to understanding the Great Moderation. Kim and Nelson (1999), McConnell and Pérez-Quirós (2000), and Stock and Watson (2002) have documented a decline in the variance of output growth since the mid 1980s. Only DSGE models with richer structure than normal innovations can account for this.
Max ERC Funding
909 942 €
Duration
Start date: 2010-07-01, End date: 2015-06-30
Project acronym EUROCORR
Project The European correspondence to Jacob Burckhardt
Researcher (PI) Maurizio Ghelardi
Host Institution (HI) SCUOLA NORMALE SUPERIORE
Call Details Advanced Grant (AdG), SH5, ERC-2009-AdG
Summary The aim of this project is to map and publish in a critical edition the extensive correspondence of European intellectuals with the Swiss cultural historian Jacob Burckhardt over a period of more than half a century, from 1842 to 1897. This correspondence documents a crucial period in European history and culture, one which witnessed the emergence of art history as a separate discipline; serious political conflict in France, Germany, Italy and Switzerland; the birth of the nation-states of Italy and Germany; debate on the meaning and consequences of democracy as a system of government; and the rise of Caesarism in France. The effects of modernism are also discussed in this correspondence, from the culture of museums, art exhibitions and the first universal expositions (e.g., the Expositions Universelles in Paris) to the clash between industrial culture and neo-humanist ideals of education. The large body of correspondence received by Jacob Burckhardt (about two thousand letters conserved in various libraries and private archives) provides a cultural map of this crucial phase in the development of a new European identity.
Summary
The aim of this project is to map and publish in a critical edition the extensive correspondence of European intellectuals with the Swiss cultural historian Jacob Burckhardt over a period of more than half a century, from 1842 to 1897. This correspondence documents a crucial period in European history and culture, one which witnessed the emergence of art history as a separate discipline; serious political conflict in France, Germany, Italy and Switzerland; the birth of the nation-states of Italy and Germany; debate on the meaning and consequences of democracy as a system of government; and the rise of Caesarism in France. The effects of modernism are also discussed in this correspondence, from the culture of museums, art exhibitions and the first universal expositions (e.g., the Expositions Universelles in Paris) to the clash between industrial culture and neo-humanist ideals of education. The large body of correspondence received by Jacob Burckhardt (about two thousand letters conserved in various libraries and private archives) provides a cultural map of this crucial phase in the development of a new European identity.
Max ERC Funding
1 215 600 €
Duration
Start date: 2010-06-01, End date: 2015-05-31
Project acronym GOPG
Project Globalization, Optimal Policies and Growth
Researcher (PI) Gino Gancia
Host Institution (HI) Centre de Recerca en Economia Internacional (CREI)
Call Details Starting Grant (StG), SH1, ERC-2009-StG
Summary This project studies the challenges that policy makers face in a world where globalization is proceeding at high speed and knowledge creation is the key to prosperity. It consists of two main parts: one focuses on optimal growth policies, the other on policy externalities induced by market integration. The first part builds on the premise that fostering innovation requires appropriate regulations on product market competition and on Intellectual Property Rights. The following questions will be addressed. What are the optimal competition and IPR policies when economic growth requires both innovation and technology diffusion? Are competition and IPR policies complements or substitutes? How does the optimal policy mix change with economic development? How do optimal contractual relationships evolve with development? What are the misallocations created by market power when sectors and firms are heterogeneous in technology and in the exposure to foreign competition? Are trade liberalization and competition policy complements or substitutes? The second part studies the consequences of and remedies to the growing mismatch between economic and political borders created by globalization. The following questions will be addressed: Why does the size of governments increase with globalization? Does higher international factor mobility lead to a race to the bottom in taxation? What is the effect of trade openness on pollution and environmental regulations? Can globalization induce governments to adopt more stringent environmental regulations? Does market integration call for a reorganization of the world political structure? Can the tendency to reinforce supra-national entities and the process of political fragmentation within states be complementary reactions to globalization?
Summary
This project studies the challenges that policy makers face in a world where globalization is proceeding at high speed and knowledge creation is the key to prosperity. It consists of two main parts: one focuses on optimal growth policies, the other on policy externalities induced by market integration. The first part builds on the premise that fostering innovation requires appropriate regulations on product market competition and on Intellectual Property Rights. The following questions will be addressed. What are the optimal competition and IPR policies when economic growth requires both innovation and technology diffusion? Are competition and IPR policies complements or substitutes? How does the optimal policy mix change with economic development? How do optimal contractual relationships evolve with development? What are the misallocations created by market power when sectors and firms are heterogeneous in technology and in the exposure to foreign competition? Are trade liberalization and competition policy complements or substitutes? The second part studies the consequences of and remedies to the growing mismatch between economic and political borders created by globalization. The following questions will be addressed: Why does the size of governments increase with globalization? Does higher international factor mobility lead to a race to the bottom in taxation? What is the effect of trade openness on pollution and environmental regulations? Can globalization induce governments to adopt more stringent environmental regulations? Does market integration call for a reorganization of the world political structure? Can the tendency to reinforce supra-national entities and the process of political fragmentation within states be complementary reactions to globalization?
Max ERC Funding
450 000 €
Duration
Start date: 2009-09-01, End date: 2014-08-31
Project acronym GREEK INTO ARABIC
Project Greek into Arabic: Philosophical Concepts and Linguistic Bridges
Researcher (PI) Cristina D'ancona
Host Institution (HI) UNIVERSITA DI PISA
Call Details Advanced Grant (AdG), SH5, ERC-2009-AdG
Summary One of the prominent features of Medieval Aristotelianism, both Arabic and Latin, is the fact that Aristotle has been credited with writings that, albeit Neoplatonic in origin, circulated under his name. Crucial as it might be for the genesis of Arabic-Islamic philosophy, the main text of the Neoplatonic tradition into Arabic, i.e., the so-called Theology of Aristotle, is still poorly edited and no running commentary exists on it. The Theology of Aristotle, derived in reality from Plotinus' Enneads, will be critically edited, translated and commented upon. This project will also study the Graeco-Arabic translations from a linguistic viewpoint. It will develop the extant Greek and Arabic Lexicon; of the Medieval translations of philosophical works into a computational resource. For the first time, the project allows Ancient and Arabic philosophy to interact with computational linguistics.
Summary
One of the prominent features of Medieval Aristotelianism, both Arabic and Latin, is the fact that Aristotle has been credited with writings that, albeit Neoplatonic in origin, circulated under his name. Crucial as it might be for the genesis of Arabic-Islamic philosophy, the main text of the Neoplatonic tradition into Arabic, i.e., the so-called Theology of Aristotle, is still poorly edited and no running commentary exists on it. The Theology of Aristotle, derived in reality from Plotinus' Enneads, will be critically edited, translated and commented upon. This project will also study the Graeco-Arabic translations from a linguistic viewpoint. It will develop the extant Greek and Arabic Lexicon; of the Medieval translations of philosophical works into a computational resource. For the first time, the project allows Ancient and Arabic philosophy to interact with computational linguistics.
Max ERC Funding
2 106 381 €
Duration
Start date: 2010-04-01, End date: 2015-03-31
Project acronym INST&GLOB
Project Institutions and Globalization
Researcher (PI) Nicola Gennaioli
Host Institution (HI) UNIVERSITA COMMERCIALE LUIGI BOCCONI
Call Details Starting Grant (StG), SH1, ERC-2009-StG
Summary Economists have recently shown that developed economies rely on proper institutions for securing property rights, resolving disputes, etc. Scholars have studied the consequences of alternative legal and political institutions, but much remains to be done. One important and unexplored territory concerns the analysis of how national institutions interact in the international arena. This proposal seeks to study this problem from two perspectives. First, how does the quality of a country s national institutions affect its gains from international integration? Second, how does international integration affect a country s institutional reform path? We address the first question by studying, both theoretically and empirically, the impact of national institutions on sovereign risk, where the latter is defined as the risk that a government unilaterally decides ex-post not to honor its financial obligations with foreigners. While the impact of national institutions on private capital flows has been studied, the role of these same institutions on supporting government debt has so far received scant attention. As for the second question, we study the impact of political and financial integration on countries institutional reform. We model two different motivations towards institutional change in an integrated world: a) direct confrontation in wars and b) competition through world financial markets. The general thrust of these analyses is that institutional reform becomes a strategic variable in international competition, creating cross-country externalities that can shed light on observed episodes of institutional converge or divergence. We also consider the role of institutional harmonization in supporting economic integration.
Summary
Economists have recently shown that developed economies rely on proper institutions for securing property rights, resolving disputes, etc. Scholars have studied the consequences of alternative legal and political institutions, but much remains to be done. One important and unexplored territory concerns the analysis of how national institutions interact in the international arena. This proposal seeks to study this problem from two perspectives. First, how does the quality of a country s national institutions affect its gains from international integration? Second, how does international integration affect a country s institutional reform path? We address the first question by studying, both theoretically and empirically, the impact of national institutions on sovereign risk, where the latter is defined as the risk that a government unilaterally decides ex-post not to honor its financial obligations with foreigners. While the impact of national institutions on private capital flows has been studied, the role of these same institutions on supporting government debt has so far received scant attention. As for the second question, we study the impact of political and financial integration on countries institutional reform. We model two different motivations towards institutional change in an integrated world: a) direct confrontation in wars and b) competition through world financial markets. The general thrust of these analyses is that institutional reform becomes a strategic variable in international competition, creating cross-country externalities that can shed light on observed episodes of institutional converge or divergence. We also consider the role of institutional harmonization in supporting economic integration.
Max ERC Funding
1 002 000 €
Duration
Start date: 2009-09-01, End date: 2015-05-31
Project acronym MACROMOD
Project New Issues in Macro Modeling
Researcher (PI) Pierpaolo Benigno
Host Institution (HI) LUISS LIBERA UNIVERSITA INTERNAZIONALE DEGLI STUDI SOCIALI GUIDO CARLI
Call Details Starting Grant (StG), SH1, ERC-2009-StG
Summary This project aims at providing novel foundations for the aggregate supply and demand blocks of current macro models, which are extensively used for policy evaluation. On the aggregate-supply side, the first part of the proposal is motivated by recent extensive and consistent empirical evidence on the presence of downward nominal and real rigidities in developed economies. The objective is to investigate the theoretical and empirical implications of including these rigidities in current macro models for: 1) the long-run relationships between inflation, unemployment and productivity growth; 2) the joint dynamics of inflation and unemployment; 3) the role of macroeconomic volatility in influencing these relationships; 4) the distribution of wages. From the policy perspective, several key implications would be examined in terms of the optimal inflation rate and the appropriate degree of stabilization policies. The second part of the proposal deals with the aggregate-demand side of current models and particularly with the specification of the stochastic discount factor. It is a well-known fact that macro models are unable to match the asset-price implications of the data. These shortcomings are more pronounced in open-economy models since the stochastic discount factors also determine the cross-country distribution of wealth and the portfolio allocations. The project will: 1) document the failures of standard preferences in accounting for several puzzles; 2) study whether there exists some stochastic discount factor that can be consistent with the data and with no-arbitrage theories; 3) add a macro structure on this stochastic discount factor while maintaining its consistency with data. In reference to the latter point, particular attention will be devoted to near-rational theories of optimizing behaviour in which the distortions in the subjective probability distributions can be related to macro variables through an optimizing model.
Finally, the research under this proposal will integrate the findings of part 1) and part 2) of the project to propose more realistic frameworks in which it is possible to investigate how investment and consumption decisions change when agents’ evaluation of future contingencies is distorted or uncertain. In particular, the project aims at investigating how monetary policy should be set when agents fear model misspecification, which manifests itself thorugh considerable and realistic premia in holding risky assets.
Summary
This project aims at providing novel foundations for the aggregate supply and demand blocks of current macro models, which are extensively used for policy evaluation. On the aggregate-supply side, the first part of the proposal is motivated by recent extensive and consistent empirical evidence on the presence of downward nominal and real rigidities in developed economies. The objective is to investigate the theoretical and empirical implications of including these rigidities in current macro models for: 1) the long-run relationships between inflation, unemployment and productivity growth; 2) the joint dynamics of inflation and unemployment; 3) the role of macroeconomic volatility in influencing these relationships; 4) the distribution of wages. From the policy perspective, several key implications would be examined in terms of the optimal inflation rate and the appropriate degree of stabilization policies. The second part of the proposal deals with the aggregate-demand side of current models and particularly with the specification of the stochastic discount factor. It is a well-known fact that macro models are unable to match the asset-price implications of the data. These shortcomings are more pronounced in open-economy models since the stochastic discount factors also determine the cross-country distribution of wealth and the portfolio allocations. The project will: 1) document the failures of standard preferences in accounting for several puzzles; 2) study whether there exists some stochastic discount factor that can be consistent with the data and with no-arbitrage theories; 3) add a macro structure on this stochastic discount factor while maintaining its consistency with data. In reference to the latter point, particular attention will be devoted to near-rational theories of optimizing behaviour in which the distortions in the subjective probability distributions can be related to macro variables through an optimizing model.
Finally, the research under this proposal will integrate the findings of part 1) and part 2) of the project to propose more realistic frameworks in which it is possible to investigate how investment and consumption decisions change when agents’ evaluation of future contingencies is distorted or uncertain. In particular, the project aims at investigating how monetary policy should be set when agents fear model misspecification, which manifests itself thorugh considerable and realistic premia in holding risky assets.
Max ERC Funding
648 000 €
Duration
Start date: 2009-11-01, End date: 2014-10-31
Project acronym PHERC
Project Interactive edition and interpretation of various works by Stoic and Epicurean philosophers surviving at Herculaneum
Researcher (PI) Graziano Ranocchia
Host Institution (HI) CONSIGLIO NAZIONALE DELLE RICERCHE
Call Details Starting Grant (StG), SH5, ERC-2009-StG
Summary The aim of this project is to provide through an innovative critical edition the first comprehensive interpretation of some physical, epistemological, ethical and rhetorical works by key figures of Hellenistic philosophy like Epicurus, Chrysippus and Philodemus. These works, totally lost in the manuscript tradition, are preserved exclusively in the carbonised papyrus rolls found since 1752 at Herculaneum and are either totally unpublished or were published only partially between the XIX and the XX century. Even when they were edited, this was done with very precarious methods. In particular, the previuos editors did not usually read the original papyri themselves and even when this was the case, they could not dispose of any modern technology for doing this successfully. In order to overcome these problems the candidate plans for each work: a) to reconstruct with pioneering mathematical techniques the relative and absolute sequence of the papyrus fragments in the original bookroll; b) to read and transcribe the original text by means of last-generation fiber-optic microscopes and with the help of digital multispectral images (MSI); c) to make a thorough textual constitution with a new editorial system and a complete translation; d) to provide an extensive philosophical introduction and commentary containing a wide-ranging interpretation which highlights the specific contribution given by each work in the mainstream of the philosophical discussion of the Hellenistic age; e) to supply a DVD including an interactive edition of the critical text with direct links to all the relevant papyrological documentation (MSI, old apographs, archive documents) and a virtual reconstruction of the original papyrus roll.
Summary
The aim of this project is to provide through an innovative critical edition the first comprehensive interpretation of some physical, epistemological, ethical and rhetorical works by key figures of Hellenistic philosophy like Epicurus, Chrysippus and Philodemus. These works, totally lost in the manuscript tradition, are preserved exclusively in the carbonised papyrus rolls found since 1752 at Herculaneum and are either totally unpublished or were published only partially between the XIX and the XX century. Even when they were edited, this was done with very precarious methods. In particular, the previuos editors did not usually read the original papyri themselves and even when this was the case, they could not dispose of any modern technology for doing this successfully. In order to overcome these problems the candidate plans for each work: a) to reconstruct with pioneering mathematical techniques the relative and absolute sequence of the papyrus fragments in the original bookroll; b) to read and transcribe the original text by means of last-generation fiber-optic microscopes and with the help of digital multispectral images (MSI); c) to make a thorough textual constitution with a new editorial system and a complete translation; d) to provide an extensive philosophical introduction and commentary containing a wide-ranging interpretation which highlights the specific contribution given by each work in the mainstream of the philosophical discussion of the Hellenistic age; e) to supply a DVD including an interactive edition of the critical text with direct links to all the relevant papyrological documentation (MSI, old apographs, archive documents) and a virtual reconstruction of the original papyrus roll.
Max ERC Funding
900 000 €
Duration
Start date: 2009-10-01, End date: 2014-09-30
