One of the main topics of macroeconomics analysis is to assess the causes and transmission of business cycles. In order to address this issue, macroeconomists have analysed the response of output to different types of shocks. However, since a shock is by definition an unobserved variable, there...

The standard version of "q" theory, in which investment is positively related to marginal "q", breaks down in the presence of fixed costs of adjustment. With fixed costs, q is a non-monotonic function of investment. Therefore its inverse, which is the traditional investment function, does not...

This paper uses both the cross-section and panel data approaches to study regional growth in China.

We examine in this paper the effect of an early resolution of uncertainty on savings. We show that this effect is in general ambiguous. We provide necessary and sufficient conditions on the utility function which guarantee that an early resolution of uncertainty reduces current savings for...

We specify and estimate a general health equation. Among the determinants of health, we include employment status, alcohol use, and cigarette use. Non linear instrumental techniques are employed to control for any possible endogeneity of these variables.

This paper analyzes the consequences of introducing stochastic technological progress and stochastic labor input into a Solow-Swan exogenous growth model and an 'AK' endogenous growth model with general savings and production functions.

This paper tests the monetary approach to Zimbabwe's balance of payments during the period 1980 to 1991. It examines whether excess money supply played a role as a disturbance using multivariate cointegration and error-correction modelling.

We develop a ten variable structural VAR model of the Australian economy for the period 1980 to 1995. The VAR methodology has not been widely applied in the Australian context, despite its popularity in quantitative macroeconomics internationally.