This paper characterises the world real interest rate as a common trend in real interest rates in Germany, Japan, and the United States from 1964Q1 to 1996Q2. This single common trend has desirable properties as the world real interest rate and has been moving together with the world real return...

A quasi-linear social choice problem is concerned with choosing one among a finite set of public projects and determining side payments among agents to cover the cost of the project, assuming each agent has quasi-linear preferences. We first investigate the logical relations between various...

An increasing number of Chinese companies are now taking the form of the enterprise groups. The enterprise groups often develop in China when the parent companies set up subsidiaries to enter into new profitable business areas. We interpret this phenomenon as a response to increasing market...

This paper develops an asymptotic theory for time series binary choice models with nonstationary explanatory variables generated as integrated processes. Both logit and probit models are covered. The maximum likelihood (ML) estimator is consistent but a new phenomenon arises in its limit...

We consider the class of binary social choice problems. A society must choose one of two public projects, money being available to perform side payments and each agent having quasi-linear preferences. Moulin [1987a] formulates the problem and characterizes the egalitarian solution on the basis...

This article closely examines the maintenance of the covered interest parity during the course of the currency crisis in Korea, and analyzes the movement of the covered interest differential(CID) in an effort to draw out some policy implications. This article also takes a thorough study of...