This paper addresses the problem of multiple equilibria in markets with adverse selection. Akerlof (1970) identified an unique equilibrium of the total market failure under adverse selection. Posterioly, Wilson (1979, 1980) argued that the presence of adverse selection may lead to multiple...

The aim of this study is to re-visit the Feldstein and Horioka (1980) puzzle for Malaysia. The conventional bounds testing approach cannot show any evidence of cointegration between savings and investment. However, the result of our proposed rolling bounds test approach shows that the...

This article aims at checking whether the macroeconomic models of consumption are always verified to reproduce the dynamics of consumption habits. We show that even if the Keynesian theory of consumption is still checked as the disposable income is a significant explanatory variable of household...

This article aims at checking whether the macroeconomic models of consumption are always verified to reproduce the dynamics of consumption habits. We show that even if the Keynesian theory of consumption is still checked as the disposable income is a significant explanatory variable of household...

The Purchasing Managers' Index (PMI) is one of the key variables to which economists pay considerable attention for assessing US economic activities, particularly, business conditions in the manufacturing sector. Although the PMI has been used to assess the US economy, there is hardly any...

Time-to-build completion rates can be estimated individually, under the restrictions that they are positive values summing up to one. As an alternative strategy, we may use the beta distribution as a restriction and calculate the corresponding completion rates collectively. The estimation...

This paper investigates the effect of confidence on the Japanese economy by using vector autoregressions. Especially, I divide the total estimation period into two parts, pre- and post-bubble periods, and analyze the transition of that effect through the ages. It is shown that consumer...

In this study, we set up a framework to generate the forecasts of growth in aggregate demand and its components using real-time data. In general, these forecasts (for 1983-2008) accurately predict directional change under symmetric loss and are thus of value to a user who assigns similar cost...

Following a positive technology shock, a flexible price monetary model with catching up with the Joneses utility function can easily generate a negative and persistent decline in employment. When the effect of relative consumption is large, the model also produces a small short run response of...

This paper examines an intricate relationship between inflation rate and unemployment rate in the Philippines by employing several economic methods, including the dynamic ordinary least squares (DOLS) (Stock and Watson, 1993) and the Hodrick-Prescott filter (Hodrick and Prescott, 1997). The...