This paper considers the dynamic evolution of algorithmic (recursive) learning rules in a normal form game. It is shown that the system - the population frequencies - is globally stable for any arbitrary N-player normal form game, if the evolutionary process is algorithmic and the "birth...

The application of econometric analysis to the process of economic policy formulation is considered. A framework is provided by the theory of reduction, specifically reductions where key information losses would invalidate policy.

We consider multicointegration in the sense of Granger and Lee (1990), that is, the cumulated equilibrium error cointegrates with the process itself. It is shown, that if the process is given by the cointegrated VAR model for I(1) variables, then multicointegration cannot occur. If, however, the...

A well-known result from the analysis of the monetary policy coordination of two countries is that coordination of the two policies pareto-dominates the outcome of the non-cooperative game. Hence, both countries will always have an incentive to form a Union when it is ensured that the other...

This paper discusses the intellectual origins of the so-called 'new economic geography' and provides its basic insights by means of a streamlined framework which stresses the generality of their implications.

Using the budget of Italian Survey by Banca d'Italia we analyse the sectoral choce of the Italian workers among the private, public and self-employed options. The choice is modelled using a trivariate probit which allows one to release the IIA hypothesis, imposed by the multinomial logit model....

This paper is a contribution to the memory of A.W.H. Phillips, drawing on the authors' personal recollections of Bill as a teacher and colleague, and also presenting links between Bill's research in econometrics and some more recent econometrics literature. Particular topics mentioned are :...

A correction factor, depending on sample size and parameters, is found for the likelihood ratio test for some linear hypotheses on the cointegrating space in a vector autoregressive model, where the adjustment coefficients are known. The main idea is to condition on the common trends when making...

The Jordan Form of the VAR's Companion matrix is used for proving the equivalence between the statement that there are no jordan blocks of order two or higher in the Jordan matrix and the conditions of Granger's Representation Theorem for an I(1) series. Furthermore, a Diagonal polynomial matrix...

The vector autoregressive model for seasonal cointegration is analysed. The general error correction model is discussed and conditions are found under which the process is integrated of order 1 at seasonal frequency and exhibits cointegration. Under these conditions a representation theorem for...