This paper examines the stability of coefficient estimates from weak-form and semi-strong form tests of efficiency in the 30-day forward exchange rate using Canadian/U.S. weekly and monthly data. The structural relationships are unstable and conclusions based on the full sample estimation can,...

Within a hierarchical firm structure, the paper details how the composition of a worker's skills and the (non) observability of a worker's ability affect wage and promotion paths. Promotion takes place over time and is not efficient, as employers seek to exploit their inside information about a...

Under what circumstances would Adam Smith's statement "the division of labour is limited by the extent of the market" be valid. This paper shows the validity of Smith's law depends not on increasing returns to scale, but on the effect of scale on economies of scope (i.e. cost complementarities...

This paper attempts to synthesize various procedures for testing non-nested hypotheses within the framework of artificial nesting, and establishes the result that different tests correspond to different treatments of its identification problem. Numerical and a priori identification methods are...

We will study a multi-sector discrete-time optimal growth model with a neoclassical non-joint technology and show the Neighborhood Turnpike; any optimal path will be trapped in the neighborhood of an associated optimal steady state and its neighborhood can be chosen as small as possible by taking...

This paper reviews recent developments in unemployment research and policy, and their implications. Two international comparisons suggest that the tendency for the unemployed to exit the labour force rather than find employment may be weaker in Canada than in the U.S. and that layoffs may be...

The effect of imperfect loss offsetting in corporate and personal tax law is analyzed. In a two-period model with technical uncertainty, the cost of capital is derived taking into account taxes, inflation and risk. Imperfect loss offsetting could raise the cost of capital and deter investment....

This paper proposes a methodology for analyzing spell duration of unemployment in terms of duration shares. One can examine directly the shares of total unemployment accounted for by short and long spells. The approach extends recent theoretical work on statistical inference with distributional...

We propose a specification test of a parametrically specified nonlinear model against a weakly specified alternative. We generalize a similar test procedure proposed by Delgado and Stengos (1990) to test the specification of a linear model. We estimate the alternative model by using K...