... and multivariate cointegration and procedures in vector error‐correction modeling (VECM). The empirical results suggest that a bivariate relationship between inflation and productivity is spurious, as the unit root pre‐tests that account for oil shock episodes show that inflation and productivity are integrated...

...I. Civcir; A. Parikh The objective of this study is to propose an economic model of the nominal money balances and reserves in the Turkish economy during the period 1960‐1988. As most of the variables show unit root non‐stationarity, an approach based on the error correction system (Phillips, 1991...

...Michael Funke; Stephen Hall UK regional data on GDP and the GDP deflator are analysed to extract information on underlying demand and supply shocks as well as aggregate demand and supply shocks. Identification is achieved using long run restrictions, based on a theoretical model. The main results...

...Prabir C. Bhattacharya This note sketches out the likely effects of a wage subsidy in a model of LDC which systematically incorporates an Informal sector. It is seen that the effects of a wage subsidy in this model differ considerably from those derived in the Harris‐Todaro‐type frameworks. Also...

...Abdul M.M. Masih; Rumi Masih; Mohammad S. Hasan Proposes to re‐examine empirically the causal relationship between defence spending and economic growth in mainland China. First, using a VAR modelling technique with suitable diagnostics, e.g. Akaike’s FPE statistics and a likelihood ratio test...

...Marco Haan; Hans Maks Proposes a model which shows that Stackelberg competition is not necessarily welfare‐ enhancing compared with Cournot competition. Shows that, although in a simple duopoly model prices in a Stackelberg equilibrium are lower than in a Cournot equilibrium...

...H. Jalilian Attempts to incorporate the “new forms” of foreign investment into a unified model. Uses this simple model to show how differences in production environment in particular, are likely to affect both the timing and mode(s) that any foreign investment is likely to take. The explanatory...

...Phillip Lawler Examines the implications of real wage rigidity for anticipated fiscal policy in the context of a small open economy operating a floating exchange rate. Employs an extended version of a Mundell‐Fleming model, containing an explicit treatment of the supply side, in which domestic...

...Chulho Jung Develops a method of forecasting foreign exchange rate by normal mixture model (NMM). Initially establishes a set of exchange rate models and switches from one model to another probabilistically, depending on supply shocks or government policy changes. By assuming that the population...

...Hugh M. Arce; Kenneth A. Reinert A recurrent concern of researchers who measure the cost of protection is that welfare estimates based on models with highly aggregated sectors of the economy in question will understate the true cost of protection if the tariff system is not uniform. Uses the 1988...

... of by‐products and uses an example to illustrate how their exclusion can impact on estimated EPRs. © MCB UP Limited 1994 Agriculture Egypt Models Products Protectionism Tariffs Value added The effective protection concept is well known and widely used in the evaluation of trade policy...

...Ian Molho Sets out a version of a standard conjectural‐variations oligopoly model,and investigates the properties of that model with respect to the effects of entry. Shows within this context that entry unambiguously reduces incumbents′ margins and output, while raising industry output. Also shows...

...Yong‐Yil Choi While there is strong consensus at the conceptual level about sustainable development there are few formal models that outline the conditions for environmentally steady and sustainable growth in a decentralized market economy. Addresses this issue by building a Green GNP model...

... framework to analyse the performance effects of divisionalization, adopts a dynamic approach, thereby allowing the intertemporal nature of any such performance benefits to be examined. Presents results from the UK manufacturing industry; the model estimated uses a spline function to incorporate differing...

...R. MacDonald; P.D. Murphy Examines the behaviour of UK employment in manufacturing over the period 1964 to 1986. The use of cointegration techniques allows the separation of a long‐run equilibrium relationship for employment from its short‐run dynamics. The estimated model demonstrates a high...

...John Creedy; Patrick Francois Examines, using a simple model, the choice of appropriate contributions of taxes and fees used to finance higher education. A two‐period model is developed in which individuals in cohort invest in higher education in the first period, and the interdependences between...

...Philip Lawler Examines the effects of a monetary expansion on certain key macroeconomic variables, in particular the nominal exchange rate,competitiveness, and domestic output and employment, using a modified version of the Dornbusch (Journal of Political Economy, 1976)model. Dornbusch′s...

... there is evidence of speculative activity. Asset shares are influenced by relative yields (including capital gains), inflation, and real expenditure. A two‐step estimation procedure is used: a set of cointegration vectors are estimated for asset shares and dynamics are represented by a systems error feedback model...

...David Blake The different types of estimators of rational expectations models are surveyed. A key feature is that the model′s solution has to be taken into account when it is estimated. The two ways of doing this, the substitution and errors‐in‐variables methods, give rise to different estimators...

...Chien‐Hsun Chen A general equilibrium model for mainland China′s open economy is formulated and used to examine the effect of stabilisation policy on the internal and external balances. An expansionary monetary or fiscal policy in particular through its effect on consumption and labour supply...