Beggar-my-neighbor policy problems for EEC countries are examined by considering a two-country currency area model involving real wage rigidity and a floating exchange rate with the rest of the world. Recognition of the supply-side effects of the exchange rate significantly changes earlier...

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...