Estimates are presented for the impact of debt accumulation by the central and subcentral governments of a federation on the creditworthiness of other federation member governments. The estimates, calculated using an ordered probit model and Canadian provincial data, indicate that debt...

This paper examines whether observed "structural shifts" in the money demand function could be the result of agent heterogeneity due to different household income levels. Following the methodology of T. M. Stoker (1986), income distribution variables are found to be significant determinants of...

The hypothesis that the forward rate is an unbiased predictor of the future spot rate has been rejected in many empirical studies. The rejection of this hypothesis could occur because market behavior is inconsistent with rational--expectations or because there exists a risk premium. Equations...

The marginal political costs of different types of taxes and government spending, as well as voter preferences over different fiscal variables, are examined using two different specifications for political cost--one based on the probability of incumbent defeat and the other based on the...

The impact on price of current product quality and reputation are estimated using data from the market for Bordeaux wine. A model is proposed in which price is a function of current quality and expected quality, where the latter depends on reputation. Equations determining price and expected...

The forward rate is often used as the market's prediction of the future spot exchange rate even though the hypothesis that the forward rate is an unbiased predictor of the future spot rate has been rejected in a large number of empirical studies using data for different countries and time...

The absolute and relative impact of current quality and reputation variables on consumer decisions are examined using data from the market for Bordeaux wine. The estimates indicate that a model of consumer decision making which incorporates information on reputation (past quality) and collective...

Health spending, the largest component of provincial government spending, has risen significantly over the past decade. It has been asserted that larger health expenditures have caused provincial governments to spend less on other types of government services. Using a panel of province-level...

This paper uses constituency-level political campaign expenditures to analyze the impact of competition on advertising. A theoretical model, based on expected utility maximization, predicts an uncertain impact of increased competition on campaign spending. The direction of this impact is tested...

The standard two-sector model is generalized to include a slowly adjusting technique of production. The relationship between a short run fixed coefficients production structure and a long run production structure in which factors are substitutable is examined. The Stolper-Samuelson theorem holds...