We focus on the implications of strategic interactions among research intensive firms on the rates of growth when the number of competing firms is small and firms recognise the effects their investment decisions have on the production behaviour of their rivals. Similar to other results, we find...

The least squares estimator is probably the most frequently used estimation method in regression analysis. Unfortunately, it is also quite sensitive to data contamination and model misspecification. Although there are several robust estimators designed for parametric regression models that can...

Results of numerous cross-country growth regressions have been found to be sensitive to specification, time period or sample coverage. Several authors have observed that results may depend on the source and data collection methods for right-hand side variables. In this paper we suggest that a...

We investigate the effects of market fragmentation and information flows in the case of stocks cross-listed on markets in Central Europe and London. First, we test for co-movement, interaction and error correction behavior between the local and London markets. Our results suggest that strong...

This paper studies key markets (financial, labor, natural resource, and product) to assess how they are facilitating or constraining growth. First, we draw on the body of existing theoretical and empirical literature to discuss the links between markets and growth. Second, we present four...

The rapidly changing environment of the transition may create special problems for calculation of index numbers that require a fixed basket of goods and outlets. Using referent-level data we find that using a fixed-weight Laspeyres Index may overstate inflation rates by approximately 5 per cent...

Many economists find that classroom experiments using the Double Auction (DA) trading institution are an effective pedagogical tool in introductory economics classes. Results of such experiments reliably illustrate the concepts and descriptive relevance of the theory of competitive equilibrium...

Using data from the Luxembourg Income Study we analyze state welfare generosity to immigrants and natives in Sweden, Norway, Belgium, Germany and the USA. The distinction between EU and non-EU immigrants proves to be an interesting one. We find a substantial social income gap between non-EU...

We investigate behavioral responses of judges and prosecutors to more severe punishments by analyzing the effects of Truth-in-Sentencing (TIS) laws in a large sample of individual criminal cases. The TIS laws raised effective punishment by requiring offenders to serve at least 85% of their...

In this paper, I analyze the effects of monitoring on an agent’s incentives in a two-period principal-agent model in which the agent decides on his effort and corruptibility. The agent’s type and strategy are unknown to the principal. I compare incentive-compatible wages under three...