Using Australian quarterly data from the post-float period 1984:1-2003:1 and a partial system, we identify and estimate two cointegrating relations, one for the interest-rate differential and the other for the nominal exchange rate. Our estimate of the long-run elasticity of the exchange rate...

IMF-Sonderziehungsrechte und Entwicklungshilfe Das Problem eines "link" zwischen der Entwicklungshilfe und den IMFSonderziehungsrechten ist seit deren Einführung Gegenstand einer ausgedehnten Kontroverse. Die Gegner des "link" bestehen darauf, den Charakter des Systems der Sonderziehungsrechte...

Conventional growth curves, such as the logistic and Gompertz, though both useful and successful as descriptive measures, lack economic substance. Where a new product is developed expressly to compete with an existing close substitute, any economist might reasonably expect the relative prices of...

The United States occupies a rather unique position in the world wool trade - besides being one of the world's largest apparel wool producers, she also needs to supplement her requirements by sizeable imports from wool surplus countries. However, wool imports into the U.S. have a strong...

The paper discusses the problem of incompetent and/or irresponsible refereeing of scientific papers, with emphasis on economics papers. To illustrate, I describe my own confrontation with erroneous published papers, and demonstrate that writing comments on such papers does not always solve the...

By modifying slightly a standard neoclassical-synthesis macroeconomic model, this paper investigates the effects of an adverse supply or demand shock on output, employment, investment, prices, interest rates, and the exchange rate. The paper focuses on the possibility of the magnification of...

In this paper, we define deficit sustainability by requiring formally that both the discounted debt vanish asymptotically and the undiscounted debt be bounded. Thus, a new necessary condition and a new testing procedure emerge. We propose a new test statistic and prove that its limiting...

We construct a model that considers the direct effects, if any, of government spending on the attitudes of a typical consumer toward risk, time preference, and intertemporal substitution. The null hypothesis is that a growing government sector does not affect the consumer's behavior, and the...