This article empirically investigates the volatility spillover of stock returns from the market to disaggregated industry sectors. Seventeen sectors from the US and UK stock markets are estimated by the GARCH technique based on daily data from 1973 to 2008. The key findings are two-fold. In the...

Within a financial- and growth-programming framework, this paper develops a policy-driven growth model and addresses the effects of World Bank lending on economic growth in a sample of 30 countries, after having controlled for the effects of key macroeconomic variables. Both static and dynamic...

McKinnon's (1973) complementarityy hypothesis predicts that money and investment are complementary due to self-financed investment, so that a real deposit rate is the key determinant of capital formation for developing economies. This paper critically appraises this contention by conducting a...

Corporate finance in the Central and Eastern Europe was, in general, characterised by soft budget constraints (SBCs), often leading to the inefficient allocation of resources. This paper empirically investigates the extent of the impact of SBCs on investment financing for large firms in six new...

Soft budget constraints (SBCs) can be said to exist in situations where governments rescue loss-making firms in order to guarantee their survival by means of either a direct or an indirect injection of credit. The credit markets of the former socialist economies of Central and Eastern Europe...

The note examines how negative income taxation may influence incentives to work. The model indicating the income-leisure trade-off is used in both graphical and algebraic forms. The analysis indicates that if both income and leisure are "normal" goods, and if preference patterns are not changed...