Is public R&D spending complementary and thus "additional" to private R&D spending, or does it substitute for and tend to "crowd out" private R&D? Conflicting answers are given to this question. We survey the body of available econometric evidence accumulated over the past 35 years. A framework...

We propose that analysis of purchasing power parity (PPP) and the law of one price (LOOP) should explicitly take into account the possibility of "commodity points" -- thresholds delineating a region of no central tendency among relative prices, possib ly due to lack of perfect arbitrage in the...

This paper examines the extent to which a favorable external shock such as the lower price of an intermediate input affects sectoral output and employment, the real exchange rate of the wage in an economy where the input has no domestic production at all. The analytical framework is a real,...

The paper develops a simple stochastic new open economy macroeconomic model based on sticky nominal wages. Explicit solution of the wage-setting problem under uncertainty allows one to analyze the effects of the monetary regime on welfare, expected output, and the expected terms of trade....

JEL Classification: E44, G21<BR> Keywords: banking sector, banking crises, emerging markets<BR> The existing empirical literature on banking crises has not produced agreement on their causes. Using a sample of 75 emerging markets in 1975-1997, we attempt to determine what we know about banking crises by...