Canadian economists have devoted some attention to the study of regional cycles. In the Quebec-Ontario case, the "wid ening" hypothesis has emerged as the empirical consensus: this hypot hesis states that the gap between the two regional economies increase s in a recessionary period. This paper...

Since the abandonment of monetary targeting by the Central Banks of major industrial nations, McCallum's rule has attracted renewed attention in the macroeconomic literature. Both McCallum and his critics have investigated the stabilizing properties of the rule and its robustness across regimes...

The work of Robert Hall (1978) on the stochastic implications of the rational expectations-permanent income (RE-PI) theory has initiated numerous empirical analysis. The purpose of this paper is to reexamine this question using the methodology recently proposed by Abel and Mishkin (1983) on a...

This exploratory study attempts to measure and explain the evolution of productivity of seven Canadian air carriers over the 1970-80 period. Based on recent work on time series analysis, and in contrast to the conventional approach, this paper links measured productivity to the potential and...

To overcome the over-parameterization problems typically associated with the estimation of large VAR systems, Litterman (1979, 1986) and Doan, Litterman, and Sims (1984) have proposed the inclusion of statistical a priori information. In this paper, we investigate how economic a priori...