Investment in most heavily indebted countries has been weak since 1982. Several papers (Krugman, 1988; Corden, 1988; Sachs, 1989) have subsequently established the debt overhang proposition: the existence of a heavy debt burden reduces the incentive to invest.1 This proposition has given an important...

Fashions and their revivals occur in a rather erratic manner. The paper shows that such fluctuations can be derived from the utility maximizing behaviour of rational individuals with stable preferences. It is assumed that the demand for the fashion good is determined, amongst other variables, by...

The long road from capitalism to capitalism the Eastern European economies have made has been paved with many economic problems, but the transition from a command economy into a market economy is likely to become a bumpy ride as well. Apart from the major real economic reforms that have to take...