We analyse the relationship between export competitiveness and investment in machinery, allowing for imperfect substitution between domestically produced and imported machinery. A translog export price function is estimated for developed, export-oriented developing, and import-substituting...

In order to add realism to the war of attrition model and explain high inflation experiences of countries such as Turkey, Argentina and Brazil, one needs to consider the crucial role played by political elites. In countries with weak institutions and social interest groups, it is rather...

This paper uses the variance-ratio-based multiple comparison test and Richardson-Smith's Wald test procedures to test for martingale property of daily exchange rates of seven major currencies vis-a-vis US dollar. To allow for the possibility that exchange rates are not governed by a single...

We obtain measures of demand and supply shock spillovers across the U.S. manufacturing industries using monthly data on industrial production (1976-2022) and producer prices (1947-2022). Analyzing the spillovers/connectedness measures and the input-output linkages, we find strong evidence that...

This paper investigates the state-level differences in government and community responses to the COVID-19 pandemic, leading to different growth trajectories of COVID-19 cases and their connectedness across the U.S. states. Our regression analysis shows that higher growth trajectories are...

Using a computable general equilibrium model of the global cocoa market we analyze optimal export taxes in a multicountry framework. We show that Lerner's symmetry theorem for uniform taxes does not carry to the case of intraindustry trade with non-uniform taxes. Import liberalization in other...

This article examines the extent of contagion and interdependence across the East Asian equity markets since early 1990s and compares the ongoing crisis with earlier episodes. Using the forecast error variance decomposition from a vector autoregression, we derive return and volatility spillover...