Convergence is defined for a multivariate time-series model of output with breaks in intercepts and in time trends. Using OECD quarterly data on output from 1980, the convergence hypothesis is tested across seven European economies, Belgium, Finland, France, Italy, the Netherlands, Spain and the...

This paper presents necessary and sufficient conditions for unambiguous changes in wage inequality in a dual economy, based on analysis of the entire Lorenz curve. These conditions are then used to analyze the distributional consequences of various types of economic growth. In particular, it is...

We show that the New-Keynesian (NK) model of inflation can be interpreted as a forward-looking cointegrated model. This allows us to model firms' expectations about marginal costs in a simple VAR framework and develop relatively simple formal tests of the model which bypass the econometric...

We examine the effect of financial openness on the development of financial systems in a panel of 35 emerging markets during the period of 1976 to 2003. A group of indicators including variables from banking sector, stock market, and national capital accounts are used as measures of financial...

Data from a number of regions indicate that childhood deaths are unequally distributed across families. This has been identified, in previous research, with (observed and unobserved) heterogeneity between families. In this paper, we investigate whether, on top of these correlated risks, there is...

Using recently developed panel data techniques on data for 43 developing countries over the period 1970-98, this paper provides an exhaustive analysis of causality between aggregate private investment and financial development. GMM estimation on averaged data, and a common factor approach on...

Techniques for determining the number of stochastic trends generating a set of non-stationary panel data are applied to budget shares for a number of commodity groups from the Family Expenditure Survey (FES) for the UK for the years 1973-2001. It is argued that some stochastic trends in macro...

This article investigates the relation between the level of publicness of digital goods – i.e. their degree of non-excludability and non-rivalness – and the pirating behaviour of the consumers. The main focus is put on the difference between the ex-ante level of publicness – determined by...

This paper investigates the contemporary sharing of household resources between parents and co-resident children, motivated by the increasing popularity of cash transfers targeted at children, and limited evidence of their efficacy. It argues that this provides information on parental altruism...

This paper examines the inflationary consequences of a currency changeover in the catering market. Empirical evidence from the Michelin Red Guide shows that: i) differently from restaurants in non-euro countries, restaurants in the euro area experienced abnormal price increases just after the...