In this article, effects of stock price developments on employment are examined. For this purpose, the reduced-form equation of the Keynes-Weintraub-Davidson model for employment is augmented with stock prices. Estimation of the reduced-form equation, employing cointegration methodology and...

In this article, we provide a test of long-run monetary neutrality employing cointegration and vector error-correction modelling methodology. Using quarterly data for the United States, we estimate the long-run relationships among money supply and output and other key macroeconomic variables....

This paper investigates empirical real wage and productivity dynamics in the G7 countries using annual data for 1960-2002. The findings suggest that the level of labor productivity is positively related to GDP growth in all countries, and real wages are positively related to growth in some of...

This paper provides new evidence on the question of the effects of defense spending on aggregate output in the United States. Earlier studies of this basic issue relied on traditional econometric techniques and the neoclassical production function theory. In this paper, recently developed...