In recent discussion of the transition from a planned to a market economy it has been suggested that the queuing costs associated with excess demand represent a deadweight welfare loss. A simple model of the planned economy is developed and used to explain why the planners might choose to permit...

A simple macroeconomic model is used to examine issues of monetary policy credibility. In this model, prices do not clear the market and output may be demand-constrained. The results differ from those that emerge from the natural-rate models commonly used. Disinflation has an inevitable...

Purpose – This paper seeks to assess the importance of time‐varying regional patterns to countries' per capita growth rates, and their effect on the conclusions that can be drawn from growth regressions. Design/methodology/approach – Pooled ordinary least squares on a data set of...

Purpose – Penn World Tables (PWT) data on output measured at international prices are the data most frequently used in cross‐country growth regressions. These data are subject to revision, and the amendments can be substantial for a minority of countries, although negligible for most. The...

Some recent research has reported results more favourable to long‐run purchasing‐power parity (PPP) for exchange rates within the European Monetary System (EMS) than for those outside it. This is inconsistent with the predictions of theories that regard the EMS as a means of acquiring...

Purpose – The purpose of this paper is to examine the conditions under which discount risk leads to closed‐end funds trading at a discount. Design/methodology/approach – A model of investor portfolio choice is developed in which investors face proportional fees for holding managed funds...

Purpose – This paper aims to investigate the performance of estimators of the bid-ask spread in a wide range of circumstances and sampling frequencies. The bid-ask spread is important for many reasons. Because spread data are not always available, many methods have been suggested for...