An increasingly important component of total world trade is intra-industry trade (IIT). The large volume of literature on IIT is reflective of this importance. However, this extensive literature has focused almost completely on explaining the causes of IIT. This focus has left a puzzling gap in...

The concept that the world economy is becoming more integrated is now common place. Terms such as “globalization” or “internationalization” have been integrated into our everyday vocabulary. Over the last several decades, globalization has become a twoway street as goods flow more freely...

Despite its professed emphasis on the real world, the Post Keynesian literature lacks a history of business cycle fluctuations in a particular economy. This is an extremely important oversight. Not only might such a study be useful to researchers, but students are anxious to acquire practical as...

The paper examines the efficiency of Bulgarian banks and its determinants over the period 1999-2007. The levels of technical, allocative, and cost efficiency are estimated using a non-parametric methodology and then regressed upon a number of bank-specific, institutional, and EU-related factors....

Following their EU accession, the new member countries from Central and Eastern Europe (CEE) must achieve sustainable price stability as one of the pre-conditions for joining the Economic and Monetary Union (EMU) and adopting the euro. This paper examines the distribution dynamics of inflation...

This paper examines how household social interaction affects housing and location demand in urban settings. The extended Alonso-Muth urban household model shows that the effects on density and location hinge upon the demand relationship between social activities and housing consumption. Stronger...

The Kuznets hypothesis The character of evolution of the distribution of income along an economy’s development process has been a theme with a long history in economic enquiry. The literature starts with the classic contribution of Simon Kuznets (1955), who was the first to identify economic...

Finding satisfactory explanations of deviations from uncovered interest rate parity (UIRP) has proved to be a frustrating experience for Neoclassical economists. Studies have focused on the role of risk, but thus far no one has been able to put forward a source thereof that can account for the...

Empirical studies using surveys of exchange rate expectations have become very popular in the literature. The majority have concluded that shortterm currency market activity appears to be inconsistent with the standard neoclassical characterization and that, as a consequence, economists should...

The goal of this paper is to provide a model and method for those wishing to include the Post Keynesian perspective when teaching exchange rate theory. It begins by reviewing neoclassical approaches (purchasing power parity, the monetary model, and the Dornbusch model) and then develops a...