This paper seeks to empirically analyze the determinants of the business failure rate, i.e., the proportion of businesses that fail. This issue is of obvious importance due to its ramifications for resource allocation, especially that of financial capital, physical capital, and labor. This...

This study empirically investigates whether the assumption of the monetary authority in pre-2000 Germany that rising prices of imported crude oil would lead to domestic inflation in Germany had validity. In a model where unemployment rate changes, money stock growth, and wage growth are all...

This paper develops a formal theoretical model within which it investigates mathematically the policy implications of adverse business expectations involving deficit financing. It is found that hostility towards deficit financing will always diminish the effectiveness of fiscal policy and render...

In this Reply, we concede that our assumption that per capita expenditures will grow by the maximum permitted under Proposition 4 is arbitrary. How "unrealistic" this assumption is (would be) cannot be known. Nevertheless, we viewed the assumption under debate as necessary to the undertaking of...

Unaccounted for currency in the U.S. is argued to reflect the presence of widespread income tax evasion. This empirical study seeks to identify determinants of the underground economy in the U.S. in the form of federal personal income tax evasion over the period 1970-2008. In this study, we use...

The Board of Directors plays an important role in corporate governance. It is an internal mechanism that controls and monitors the actions of managers and aligns the utility functions between corporate owners and managers. The board of directors performs multiple functions that concern, for...

This exploratory note empirically investigates determinants of the annual percentage rate of return on commercial bank assets over the period 1959-1998. The findings indicate that this rate of return has been an increasing function of the average annual interest rate yield on three-year U.S....

This paper evaluates a study by Robert Crandall that empirically examines the shift in manufacturing employment and output from the so-called “Rust Belt” states – the states from Wisconsin to New York – to the South and West [the “Sun Belt”]. Crandall finds that differences in labor...

This study investigates whether there is empirical evidence that federal budget deficits in the U.S. actually lead to the crowding out of private investment in new plant and equipment. Several specifications are undertaken. Each of these estimations finds that private investment is apparently...

The purpose of this study is to examine the impact of federal budget deficits upon the nominal long term rate of interest in the United States when, in addition to the usual potential interest-rate-influencing factors such as monetary policy, short term interest rates, the budget deficit, and...