This thesis attempts to focus on several 'unresolved' issues that exist in the field of open-economy macroeconomics. 41 Chapter 2 examines the implications of1currency substitution, (CS) for the behaviour of a small open economy, subsequent to an unanticipated contraction in the domestic money...

The thesis aims to explain the determination of employment at the industry level - in particular, the S.I.C. Orders of the U.K. engineering industry. The traditional demand-orientated approach is examined theoretically and empirically. Many developments are made to the models, but implausible...

It is well known that the market price of options are inconsistent with option pricing models that assume the innovation of the underlying price follows Geometric Brownian Motion. What is not clear is why this occurs. The testing of option pricing models requires a joint hypothesis to be tested...

Theoretical models of the exchange rate are developed where information on the model is not fully available to agents. It is an application of Benjamin Friedman's (1979) theme that full rational expectations may be a possibility only in the long-run, even for completely rational individuals. The...

The present thesis is concerned with the relationship between price adjustments in response to changes in economic conditions and industrial market structure. Its point of departure consists of abandoning the time-honoured assumption that firms in industrial markets act as if they were price...

This thesis contains four papers in the area of Public Economics. Chapter 1 looks at producers' taxation in a model of vertically related oligopolies. Both ad valorem and specific taxes are considered and formulae expressing their effects on prices and profits are derived, showing how these...

We study the relationship between bargaining and competition with incomplete information. We consider a model with two uninformed and identical buyers and two sellers. One of the sellers has a privately-known reservation price, which can either be Low or High. The other seller?s reservation...

By distinguishing between producible and nonproducible public goods, we are able to propose a general equilibrium model with externalities that distinguishes between and encompasses both the Starrett [1972] and Boyd and Conley [1997] type external effects. We show that while nonconvexities...

Quantile forecasts are central to risk management decisions because of the widespread use of Value-at-Risk. A quantile forecast is the product of two factors: the model used to forecast volatility, and the method of computing quantiles from the volatility forecasts. In this paper we calculate...

The articles in this thesis reflect my work at the Centre for Study of Globalisation and Regionalisation in Warwick, centred around two EU-funded projects: one relating globalisation to social exclusion, and the second looking at the re-integration of the Central and Eastern European transition...