The underlying nature of forecast optimization makes the rational expectations hypothesis (REH) a framework that is theoretically consistent with the expectations formation produced by economic agents under well-defined assumptions of unbiased forecasts and efficient utilization of available...

Over the last decade or more micro price studies have proliferated. In this paper a survey of this literature reveals alternative theoretical explanations of sticky prices: (a) sellers review and change prices only at predetermined intervals (except under extraordinary circumstances), so that...

Since 2008 the global economy, following also the financial crisis, is facing a severe decline in economic activity and the economic estimates concerning the first quarter 2009 are even worse. While in the major industrialized economies Consumers Confidence Indicators (CCI) show common negative...

This paper combines unique survey and experimental data to examine the determinants of self-selection into a vocational training program. Women residing in selected disadvantaged areas in New Delhi, India were invited to apply for a 6-month long free training program in stitching and tailoring....

The paper presents a new sectoral taxonomy that combines manufacturing and service industries within the same general framework. This exercise is relevant because it seeks to achieve a greater integration between the study of sectoral patterns of innovation in manufacturing and services, and to...

The paper presents the results of a new survey on the international activities of Norwegian enterprises in the service industries. The survey focuses on three main internationalization channels: international sales, international cooperation and R&D outsourcing. The empirical analysis studies...

The paper investigates the relationship between firms’ international cooperation strategies and export decision. It proposes an extension of the recent class of models of firm heterogeneity and trade according to which prospective exporters must engage in a cooperation agreement with a foreign...

This paper introduces service innovation in the proximity-concentration trade-off model of trade and FDI (Helpman, Melitz and Yeaple, 2004). The idea is that innovation will have two main effects on service firms’ choice between exports and FDI. First, innovative firms will on average have...

This paper uses recent US data to estimate the new Keynesian Phillips curve (NKPC) with three modifications. Firstly, the variables in the NKPC are found to be nonstationary. Therefore, it is estimated with the time series methods and the cointegrating equations are tested for structural breaks....

This paper uses the methodology of Pearce (1979) and Bhagestani and Noori (2008) to show that the expected rate of inflation by the market participants in Australia is more rational than the household survey forecasts by the Melbourne Institute.