This paper explains the wage-growth slowdown that occurred in the U.S. in the 1980s. Using the vector autoregression method, it is shown that (1) a substantial portion of variations in the growth rate of average hourly earnings and other sectoral wages in the U.S. can be attributed to...

The balanced growth restrictions implied by the neoclassical growth model imply that output, the private capital stock and the public capital stock share the same stochastic trend. We analyse the postwar US data on real output, real private capital stock and real public capital stock and find...

This paper investigates the inflationary impact of actual and expected de valuations. The empirical evidence indicates that (1) the effects of devaluation on the price level are felt for at least three years; (2) in the majority of the cases, the ceteris paribus inflationary impac t of...

This paper reexamines the effectiveness of devaluation in trade-balance adjustment. The question is addressed in a framework that improves the previous empirical literature in several respects. The evidence indicates that devaluations have been a successful tool in inducing trade-balance...

The U.S. wage growth slowdown since 1982 has generated a large controversy over its causes. A hypothesis that has received extensive attention is based on international-competitivene ss effects. The evidence is mixed.and several authors have proposed alternative hypotheses based on economic or...

The authors find strongly non-Ricardian results when they reestimate Paul Evans's (1988) model using a better approximation of the market value of wealth. The authors also examine the long-run properties of the data and find results consistent with their regression evidence when they allow for...