Output fluctuations are driven by expectations about the degree of competition in the product market (and R&D sector). We examine how the characteristics of endogenous cycles change in the long run, as labour productivity grows faster. Main results: (i) expansion (or contraction) occurs more (or...

We offer a detailed empirical investigation of the European sovereign debt crisis based on the theoretical model by Arghyrou and Tsoukalas (2010). We find evidence of a marked shift in market pricing behaviour from a ‘convergence-trade’ model before August 2007 to one driven by...

This paper examines whether the degree of confidence and overconfidence in one’s ability is determined biologically. In particular, we study whether foetal testosterone exposure correlates with an incentive-compatible measure of confidence within an experimental setting. We find that men...