As long as it is employed cautiously enough, the model approach is a useful tool to estimate simultaneously the size and the development of the shadow economy in several countries. However, a second method is necessary to calibrate the model. The currency demand approach can lead to highly...

Using quarterly data for the Federal Republic of Germany, we generate four-quarter-ahead forecasts for real GDP growth. Throughout the seventies and eighties, real M1 is still the best predictor. It clearly outperforms interest rate-based forecasts, and within this group short-run interest rates...

Using Swiss data from 1983 to 1996, we first use the approach developed by MISHKIN and are able to reproduce very similar results for Switzerland. However, these results are extremely unstable, once further variables are introduced in the equations. After checking for the order of integration we...

Starting from a non-cognitivist position, it is asked whether it makes sense (i) to claim a right to work as a basic human right which should be written into the constitution, (ii) to decree a general reduction of working time, and (iii) to grant a basic income to everybody without any...

After a short description of the economic model of behaviour first the weak rationality assumption in this model is discussed. As the assumption of self-interest is often seen to be an integral part of the economic model, we also discuss this assumption and its role in economic theorising. Then...

Are political outcomes in democratic systems with referenda and initiatives stronger related to the preferences of the individual citizens than in purely representative systems? After present-ing the theoretical arguments related to the functioning and efficiency of initiatives and refer-enda,...

Using an applied general equilibrium of the Swiss economy the economic consequences of an environmental tax reform are analysed. Such a reform is followed by a substantial reduction of CO2 emissions and the use of non-renewable energy (first dividend), and a reduction of involuntary...