The Kyoto Protocol allows international emissions trading, which could take place in three different forms: government, permit, or credit trading. Which trading system is chosen is likely to depend on the preferences of several interest groups. In this paper, we give empirical evidence on the...

We analyse the Granger-causal relationships between foreign direct investment (FDI) and GDP in a sample of 31 developing countries covering the period 1970-2000. Using estimators for heterogeneous panel data we find bi-directional causality between the FDI/GDP ratio and the level of GDP. FDI is...

A Nash equilibrium can be interpreted as a common theory about the players' actions. It is required that the theory is consistent with each player choosing an optimal response to the theory. It is usually required that the theory takes the form of a combination of probability measures on...

In consequence of difficulties with control through central authorities more attention ought to be directed to the functioning of decentralized control. Based on a study of a Swedish municipal intermediation agency for dwellings, this paper focuses on decentralized control in mixed economies....

This paper characterizes the principle of first order stochastic dominance in a multivariate discrete setting. We show that a distribution f first order stochastic dominates distribution g if and only if f can be obtained from g by iteratively shifting density from one outcome to another that is...

A simple mathematical result characterizing a subset of a product set is proved and used to obtain additive representations of preferences. The additivity consequences of independence assumptions are obtained for preferences which are not total or transitive. This means that most of the economic...

The neo-classical theory of demand applies to individuals yet in empirical work it is usually taken as valid for households with many members. This paper explores what the theory of individuals implies for households with many members. This paper explores what the theory of individuals implies...

This article considers the consequences of a terms of trade deterioration in a small, open economy that imports intermediates and investment goods from abroad. We find that a positive current account effect of a permanent terms of trade deterioration is very likely. As to the effects of a...

In this paper we investigate the extent to which a number of key parity conditions hold within and between the USA and Japan. Previous research has demonstrated that the nonstationarity of the "simple" parity conditions was related to the nonstationarity of the real exchange rate, reflecting the...