A number of authors have attemted to test whether the U.S. economy is in a determinate or an indeterminate equilibrium. We argue that to answer this question, one must be impose a priori restrictions on lag length that cannot be tested. We provide examples of two economic models. Model 1...

As the worlds largest economy, the United States is also the largest consumer of fossil energy sources and the largest per capita emitter of greenhouse gases. Although the climate and energy policies adopted over the past decade have been insufficient to reverse continued emissions growth, a...

On 1 January 2005, the EU Emission Trading Scheme (EU ETS) commenced. The legislation behind the scheme is the European Commission’s Directive 2003/87/EC, within which Article 30 requires a review report of the EU ETS should be submitted to the European Parliament and the Council. In response...

Within a two-step GARCH framework we explore the linkages between equity returns of ten sectors in the euro area, the United States and Japan, respectively. Our estimation framework allows a distinction to be made between spillover effects originating from one of the three currency areas and...

The aim of this paper is twofold. First, for West Germany, France, Italy and US, we econometrically select within a SVAR model some fiscal policy regimes, i.e. a u0094set of rulesu0094 for the implementation of fiscal policies. Second, we identify the fiscal policy shocks related to different...