Applied cointegration analysis has much to gain from strong links with economic theory. For example, the current generation of equilibrium macroeconomic models have simple predi tions for cointegrating vectors. These models also suggest that important information about the economic structure can...

We test how government revenue and expenditure depend on economic activity, elections, and ideology. We show how the use of fiscal forecasts makes it possible better to understand the determinants of fiscal variables and to separate fiscal policy rules from discretionary policies. The approach...

In an overlapping generations framework, the effects of exogenous changes in child mortality on fertility and parental welfare in the short run and on fertility, population density and parental welfare in the long run is analyzed in a primitive, land-constrained economy. In a first step a...

We examine the growth performance of Sweden in the post-World War II period, focusing on explaining the relative decline of economic growth in Sweden since the early 1970s. The hypothesis that the relative decline is a consequence of productivity catch-up is rejected. A number of potential...

The present study provides a detailed analysis of the development pattern and characteristics of small-scale industries in Ethiopia against the backdrop of the transformation of the economic environment in Ethiopia and the specific policies pursued vis-à-vis small-scale industries. Problems...

We suggest an operational definition of transaction cost as the expected value of strategy information in games played by individuals randomly matched from a large population. We relate the concept of a transaction cost minimum to those of Nash equilibrium, efficiency, and evolutionary...

In 1991 a major tax reform was implemented in Sweden. This study compares the income equalization (income redistribution), vertical and horizontal equity properties of the pre- and post-reform tax and transfer systems. The method used is a decomposition, first proposed by Kakwani (1984), of the...

The effect of economic incentives on absenteeism in Sweden is examined. Based on a utility funcion, frequently used in labour supply studies, absenteeism is modelled as an individual day-to-day decision. Implications of compensating wage differentials and efficiency wage hypotheses are...

This paper examines intra-industry spillovers from FDI in Uruguayan manufacturing plants in 1988, to determine whether differences in the technology gap between locally- owned plants and foreign affiliates have any impact on the relation between local productivity and foreign presence. We find a...

The effect of tax discrimination of equity capital on the simultaneous choice of financial structure and operational risk is studied in a model with symmetrical information, risk neutral investors, bankruptcy costs and small open economy assumptions. Taxes are either proportional to the amount...