This paper examines the influence of foreign factor prices and international corporate taxation on fixed investment in the U.K. manufacturing sector. The evidence suggests that factor prices affect fixed investment in the United Kingdom through their influence on international competitiveness...

Opportunities facing skilled and unskilled workers diverged over the last quarter of the twentieth century in the UK. We develop an empirical framework consistent with these trends that highlights the importance of skill heterogeneity in both wage setting and labour demand in explaining...

The authors investigate the importance of coordinating monetary and fiscal policy in a fully dynamic model. The monetary authority seeks to control inflation while the fiscal authority has a budgetary target. They investigate the resulting Nash equilibrium and the consequences of a period of...