This paper derives a NewKeynesiandynamic general equilibrium model with liquidity constrained consumers and sticky prices. The model allows a role for both government spending and taxation in the DGE model. The mode lis then estimated using US data. We demonstrate that there seems to be a...

The main objective of the paper is to analyze the cyclical structure of style indices and of selected economic time series. After comparing similarities we examine the relationship between the economic indica- tors with the style indices to observe interactions and lead-lag struc- tures. Our...

While consumption habits have been utilised as a means of generating a humpshaped output response to monetary policy shocks in sticky-price New Keynesian economies, there is relatively little analysis of the impact of habits (particularly, external habits) on optimal policy. In this paper we...

Missed appointments are a common form of patient non-compliance. One reason often given is they had been forgotten. We evaluate two recent innovations to address this problem introduced at one of the Scottish health boards to increase compliance at consultant-lead outpatient clinics. Patients...

This paper uses a model of trade in vertically differentiated products to examine the effects of "excessive wage" increases (i.e. above productivity) on the volume of commodity imports. The model predicts that for commodities, in which the country has comparative advantage in high quality...

In this paper we re-examine the long standing and puzzling correlation between national savings and investment in industrial countries. We apply an econometric methodology that allows us to separate idiosyncratic correlation at the country level from correlation at the global level. In a major...

We show that U.S. manufacturing wages during the Great Depression were importantly determined by forces on firms' intensive margins. Short-run changes in work intensity and the longer-term goal of restoring full potential productivity combined to influence real wage growth. By contrast, the...

While common sense would indicate that trade and growth are positively correlated, it is not clear from a theoretical and empirical perspective whether or not trade is a proximate determinant of growth. The voluminous empirical efforts in this area show mixed findings. Trying to elucidate the...

We Assess the extent to which fiscal policy, as automatic stabilisers, can stabilise national economies within EMU. We use a two-country New Keynesian DGE model with liquidity constrained consumers, sticky prices, and a home bias in the composition of national consumption bundles. The model...

In this paper we construct a stylised general equilibrium macromodel to show that demand led expansions may have unexpected effects when market imperfections lead to changes in labour productivity. We find some empirical support, from a number of European countries, for the main predictions of...