In this paper we derive a method for simultaneously estimating three possible determinants of output price : the marginal market cost of production, the user cost of the resource, and the exercise of market power.

This paper reconciles two widely-used decompositions of GDP into trend and cycle that yield starkly different results. Beveridge-Nelson (BN) implies that a stochastic trend accounts for most of the variation in output, while Unobserved-Components (UC) implies cyclical variation is dominant....

While the theoretical literature on Foreign Direct Investment (FDI) focuses largely on movements in capital and firm specific technology, recent empirical evidence emphasizes primarily the local human capital necessary to absorb FDI technology. We examine how human capital affects FDI and add a...

This paper sets out a methodology for analyzing high real interest rates in developing and traditional economies.