O'Brien (1996) examined the effect of intercept shifts in I(1) processes upon Johansen's cointegration tests. In the case where the statistical model used for testing fails to take into account one or more intercept shifts, it was shown that unrelated random walks will appear cointegrated with...

Market-based structural adjustment programes have been much critised as a blueprint for economic and human development. In Uganda, the first phase of the Economic Recovery Programme (launched in 1987) has brought progress, in that macroeconomic stability and rapid economic growth have been...

This chapter reviews the literature on payment schemes for government purchases of health services. It focuses on four themes: (1) the tension between obtaining appropriate quality of services and keeping the cost of those services at an acceptable level; (2) the role of cost sharing by the...

We construct models of group formation designed to capture some of the key features of political and social competition. The models draw on the ‘citizen candidate’ approach and allow competition to be modelled as either compromise - where all groups influence outcomes; or conflict -...

This paper studies the choice between general and specific human capital. A trade-off arises because general human capital, while less productive, can easily be reallocated across firms. Accordingly, the fraction of individuals with specific human capital depends on the amount of uncertainty in...

I develop a model of growth based on three assumptions: first, a variety of technologies characterised by different degrees of labour skill intensity, where technological change is localized; second, agents are boundedly rational, and the aggregate rule of motion of their behaviour follows a...