We develop an alternative test of the 'German view' that fiscal contractions may lead to immediate consumption booms derived from a form of a open-economy permanent income model where we add uncertainty over whether shocks are permanent or transitory. Using a time-series statistical methodology,...

The paper presents a general method for estimating a country's level of fundamental house prices and its interaction with actual house prices. We set up a unified empirical model which can be used to analyze the time-series behavior of the fundamental house price and to test various hypotheses...

This paper studies business cycle synchronization in the three Scandinavian countries Denmark, Norway and Sweden prior to, during and after the Scandinavian Currency Union 1873-1913. We find that the degree of synchronization tended to increase during the currency union, thus supporting earlier...