This paper investigates the relationship between nominal interest rates and prices using nearly two centuries of data from ten industrial countries. Both a positive relationship between interest rates and price levels (that is, a positive Gibson effect) and a negative relationship between...

This paper investigates whether government bonds are viewed as net wealth. If they are, the nominal interest rate in steady-state equilibrium should be an increasing function of the government debt and of government spending. Using forward interest rates realized during World War II, this paper...

Ricardian equivalence may be a good approximation even if all households have finite horizons, many households have short horizons, and an appreciable fraction of wage income is received by liquidity-constrained households. The approximation is likely to be better the more imperfect annuity...

Using data from sixty-six economies, the authors examine (1) the substitutability between private consumption and military and nonmilitary government spending and (2) the severity of liquidity constraints. Although the estimated substitutability parameters are fragile, private consumption and...

Using an overlapping-generations model in which households may have either finite or infinite horizons, the author derives the implications of each horizon for the steady-state real interest rate. He then formulates an econometric model of the steady-state real interest rate and devises tests...

The author develops a model that nests both Ricardian equivalence and an alternative non-Ricardian theory. The alternative is a stochastic variant of Blanchard's (1985) model and its empirical implications are derived. The author then tests Ricardian equivalence against this alternative using...

This paper investigates whether the forty-eight contiguous U.S. states converge and, if so, whether convergence is absolute. Economies are shown to converge if, and only if, technology is stationary around a common trend. If convergence does occur, it is unlikely to be absolute unless the...

ADCP transects have used to characterise tidal stream resources in the Ramsey Sound area of Pembrokeshire, UK. Previous resource assessments have previously suggested that this area is one of the most promising for tidal stream deployments in the UK and this contribution confirms the commercial...