Structural change has been conjectured to lead to an upward bias in the estimated forward expectations coefficient in New-Keynesian Phillips curves. We present a simple New-Keynesian model that enables us to assess this proposition. In particular, we investigate the issue of upward bias in the...

Standard solution methods for linearised models with rational expectations take the structural parameters to be constant. These solutions are fundamental for likelihood-based estimation of such models. Regime changes, such as those associated with either changed rules for economic policy or...

This article examines the impact of UN-imposed sanctions on the stability of the Eritrean regime, using diaspora behavior as an explanatory variable of crucial importance. It explores the transnational nature of Eritrean society, which is characterized by long-distance nationalism, and examines...

We evaluate the Smets–Wouters New Keynesian model of the US postwar period, using indirect inference, the bootstrap and a VAR representation of the data. We find that the model is strongly rejected. While an alternative (New Classical) version of the model fares no better, adding limited...

Market-based instruments increasingly shape international environmental governance. Against this background, this paper puts forward a conceptual framework on the development of regulated global carbon markets. Regarding the adoption of carbon trading as an instance of wider shifts in governance...

The recent financial crisis in developed economies is attributed to the credit crunch and features of a free market economy. One main concern is the spreading of this crisis to emerging economies. This paper tests the importance of the banking sector as a credit transmission channel in India....