The multivariate cointegration model in the autoregressive and the moving average form is discussed in terms of long run relations and common trends driving the system. The basic results needed for the cointegration analysis of processes integrated of order 2 are reviewed, and the notion of weak...

The persistent movements away from long-run benchmark values in real exchange rates, dubbed the PPP puzzle, observed in many real exchange rates during periods of currency float have been subject to much empirical research without resolving the puzzle. The paper demonstrates how the cointegrated...

We integrate strategic-trade and political-economy considerations in a unified framework to analyze unilateral trade policy. Foreign firms compete on Home´s market through export or foreign direct investment (FDI). They also lobby Home´s government which sets trade (tariff) and industrial...

This paper applies revealed preference theory to the nonparametric statistical analysis of consumer demand. It exploits the idea that price-taking individual households in the same market face the same relative prices, in order to smooth across the demands of individuals for each common price...

This paper traces the origins of World Bank indicators of debt distress and their employment as HIPC sustainability targets. These targets are interpreted as ‘switching values’, below which countries are (on average) expected to avoid debt service problems, but as such, they do not take into...

A strong representation of a committee, formalized as a simple game, on a convex and closed set of alternatives is a game form with the members of the committee as players such that (i) the winning coalitions of the simple game are exactly those coalitions, which can get any given alternative...

The paper discusses methodological questions related to econometric time-series modelling of I(2) data. Long-run and medium-run relationships between two general price indices, the US CPI and WPI and four commodity prices indices, the WBI, CRBI, GSCI, and ECI are investigated in a multivariate...

We study the sources of long-run growth and wage gap in a North-South (N-S) model with trade and foreign direct investment (FDI). Although R&D is the engine of global growth, increased share of R&D spending need not be accompanied by higher growth rate, and vice versa. Although, investment is...

This paper studies two-stage bargaining in a simple general equilibrium model with a dual labour market. We analyse the case where agreements reached at the central level in the unionized sector extend beyond this sector, which seems to be a characteristic feature of continental European labour...

The authors characterize the interplay between firms' decisions in terms of either horizontal or vertical product differentiation and their ensuing price behavior, be that collusive or not. They prove the existence of a non-monotone relationship between firms' decisions at the development stage...