This paper compares the behavior of long-term interest rates and prices in Italy, the United Kingdom and the United States, and seeks to shed light into what has become known as the 'Gibson paradox.' The authors compare the various theoretical explanations for the observed positive correlation...

This paper develops a continuous time model of "buffer stock money" and incorporates it within a small macromodel with policy rules. The author examines the dynamic behavior of the system when the authorities treat the money stock as an intermediate objective. The performance of monetary targets...

The Scottish economy has experienced relative and, since 1974, absolute declines in manufacturing activity. Using econometric specifications which relate manufacturin g output to total domestic U.K. and world demand, the authors demonst rate that this is a serious regional problem, despite the...

In this paper, the authors propose a new procedure for causality testing using nonparametric additive models. They argue that the major advantage of their proposed method is that it can be used if the underlying data generation process (DGP) is either linear or nonlinear. The authors' results...

In this paper, the authors estimate the marginal rate of substitution between aggregate nondurable consumption and government expenditure using U.S. data from 1953 to 1993. This estimate is an important input to any attempt to assess the overall effectiveness of fiscal policy since it directly...