Empirical research confirms the existence of volatility spillovers across national stock markets. However, the models in use are mostly statistical ones. Much less is known about the actual transmission mechanisms; theoretical literature is scarce, and so is empirical work trying to estimate...

Spurious regression phenomenon has been recognized for a wide range of Data Generating Processes: driftless unit roots, unit roots with drift, long memory, trend and broken-trend stationarity, etc. The usual framework is Ordinary Least Squares. We show that the spurious phenomenon also occurs in...

Spurious regression phenomenon has been recognized for a wide range of Data Generating Processes: driftless unit roots, unit roots with drift, long memory, trend and broken-trend stationarity, etc. The usual framework is Ordinary Least Squares. We show that the spurious phenomenon also occurs in...

One of the most pressing problems in the Latvian economy is related to the energy sector. The most characteristic feature is coupled with the low efficiency of thermal energy consumption of households as a result of poor insulation of existing buildings in Latvia. Solving energy sector problems...

The formation of the European Union (EU) is the one of the biggest political – economic events of the last 50 years. The aim of this study is to develop EU economy functioning system dynamic model. Main research method is system dynamics. General scheme of EU economy system dynamic model is...

This paper is an up-to-date survey of the state-of-the-art in consumer demand modelling. We review and evaluate advances in a number of related areas, including different approaches to empirical demand analysis, such as the differential approach, the locally �flexible functional forms...

In many countries the state heavily intervenes in the agricultural sector. For instance, domestic prices of agricultural products are regulated by import quotas, export subsidies and intervention prices. Furthermore, coupled or decoupled payments as well as several other subsidies (e.g. for...

The 1947 Taft-Hartley amendments to the National Labor Relations Act (1935) authorized a state's right to prohibit unions from requiring a worker to pay dues, even when the worker is covered by a collective bargaining agreement. Within a short time of the amendment's passage, twelve (12) states...

The Department of Finance employs extensively a large macroeconomic model of the Canadian economy -- the QFS model(Quarterly Forecasting and Simulation Model) -- for economic and fiscal forecasting and simulation exercises. As with any large macroeconomic model, and particularly one that plays a...

Starting from a consistent and asymptotically normally distributed structural estimate of a dynamic econometric model, this paper provides an analytical derivation of the asymptotic distribution of spectra and cross spectra of the jointly dependent variables. A numerical example is provided on...