This paper presents a new method for computing the theoretical autocovariance function of an autoregressive-moving average model. The importance of the reesult is that it yields two interesting results: (1) a closed form solution is derived in terms of roots of the autoregressive polynomial and...

This paper considers the problem of testing for thepresence of unit autoregressive roots in time series with seasonal components that are arbitrarily close to being deterministic. In particular, the performance of several test criteria for seasonal and non-seasonal unit autoregressive roots is...

This paper explores the optimal design of subsidies for hiring unemployed workers ("employment vouchers" for short) in the context of a simple macroeconomic model of the labor market. Focusing on the short-term and long-term effects of the vouchers on employment and unemplkoyment, the analysis...

The purpose of this paper is to provide a methodology for computing time-consistent, strategic capital taxes in a large open economy and to analyze the nature of these taxes. Our results suggest that even if a full set of nondistortionary taxes is unavailable and even if the government has...

This paper is an attempt to account for the empirical results of Krueger and Summers (1988) which suggest significant inter-industry wage differentials. We derive a dynamic efficiency wage model where firms use their wage policy to reduce turnover costs. Industry wages are shown to be a positive...

When foreign and domestic firms collude under free trade, a tariff can be pro-competitive because it drives a wedge between the interests of the firms. However, only if the firms meet in a small number of countries can a tariff be used to prevent international collusion. In the case in which a...