Hicks's ISLM model interpretation of Keynes's theory is subject to much controversy. In this paper, we focus upon the 'real balance' effect and its role in ISLM and AD/AS analyses. We shall argue that ISLM and AD/AS require 'nominal anchors'. We live in a world where, increasingly, the 'money'...

While barriers to trade in most goods and some services including capital flows have been reduced considerably over the past two decades, many remain. Such policies harm most the economies imposing them, but the worst of the merchandise barriers (in agriculture and textiles) are particularly...

The purpose of this paper is to study the impact of capital flows on economic growth in a small open country. An extended Solow growth model which includes human capital is employed. It is shown that we can obtain results which are significantly different from the results suggested by the open...

Most regulatory government agencies to monitor the degree of compliance. These tasks are usually delegated to bureaucrats who, as self interested agents, may engage in corrupt behaviour. Opportunities for bribe taking are most likely to arise when the government (principle) is imperfectly...

In order to improve the small sample performance of the Generalized Empirical Likelihood Kleibergen type tests (GELK), we propose to re-weight the variance of moments matrix with GEL probabilities. Our modification improves GELK significantly by cutting the size distortion in half. Using...

Our review of the literature suggests that the effects of GATT/WTO are insignificant or relatively small for participants in general, but potentially very large for groups that make heavy use of it. Our empirical analysis suggests that these gains are disproportionately large for the...

The paper introduces lobby interaction in the ''protection for sale'' framework. Special interest groups provide unconditional contributions where the marginal contribution of a lobby is decreasing in the total sum collected by the government. In contrast to the ''protection for sale'' model,...

FX pricing processes are nonstationary and their frequency characteristics are time-dependent. Most do not conform to geometric Brownian motion, since they exhibit a scaling law with a Hurst exponent between zero and 0.5 and fractal dimensions between 1.5 and 2. This paper uses wavelet...

We begin by putting the size of Australia's crime problem in an international perspective thorugh comparisons with England and the U.S. Having established the magnitude of crime in Australia, section 3, rovides a framework useful for understanding the 'tough on crime' policy approach. Section...

The aim of this paper is to find approximate log-transition density functions for multivariate time-inhomogeneous diffusions in closed form. There are many empirical evidences that the underlying data generating processes for many economic variables might change over time. One possible way to...