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This paper attempts to provide empirical evidence of the positive definiteness of the mean income effect matrix, a sufficient condition for market demand to satisfy the {\it law of demand} derived by H\"{a}rdle, Hildenbrand and Jerison [HHJ(1991)]. Increasing heterogeneity in spending of...
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The EMS crisis of 1992-1993, which resulted in the widening of the exchange rate bands, may have had some impact on the long-run structure of the system consisting of daily 1-month-Eurorates on German Mark, US-Dollar and French Franc. First, we find that both the US Eurorate and the...
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