We test a q investment model for Belgium using a multivariate cointegration approach. The introduction of the degree of capacity utilization duc, in addition to investment and average q, is necessary to determine the cointegration space. This supports the idea that marginal q differs from...

This paper suggests improvements on leading indicators based on survey data. Three main point are discussed. a) The use of survey data at sectoral level results in a longer lead of the indicator series. Exploiting the information contained in "no change" answers by applying the concept of...

It is widely agreed that conflict or consensus on macroeconomic distribution of income between firms and wage-earners is important for macroeconomic stability. A new Keynesian model is developed with nominal price rigidities prevailing because of the sequential structure of wage ; price and...

Classical models of Industrial organization are examined, placing emphasis on pricing patterns in response to exogenous shocks. Different reasons for prices to be rigid are presented and explanations for apparently erratic behaviour of prices are provided.

This paper analyses in a time-series dimension the effect of unemployment benefits schemes on the unemployment of the young members of the Belgian labor force by applying the framework of smooth quantity-constrains. The model is a representation of an aggregate labor market with the coexistence...

Classical tests for unit roots have been criticized of their unusual asymptotic theory leading to disconnected confidence intervals and their lack of power in small samples. Such critiques were initiated by SIMS (1998) who promoted a Bayesian approach to the question. Various papers then...

Strategic models of product differentiation are applied to the labour market. In a first model we investigate the case of imperfect competition among workers facing an heterogenous labour demand ; the second model illustrates imperfect competition among firms that are heterogenous with respect...

A dynamic bargaining model with endogenous prices, wages and investment is presented. It accounts for capital and labour underutilization at steady state and displays various patterns of unemployment rate and capacity utilization rate comovements as a function of demand and supply shocks. The...

The aim of this paper is to study the effects of credit constraints on the equilibrium aggregate capital stock. Credit constraints are the consequence of asymmetric information and moral hazard on the credit markets. When the equilibrium interest rate is low, entrepreneurs may have the...

Real business cycle models generally neglect demand shocks. Technological productivity shocks are the primary source of economic fluctuations. The multisectoral consequences of this assumption are described in the well-known model of Long and Plosser (1983). The presented paper shows that...