This paper considers the problem of statistical inference in linear regression models whose stochastic regressors and errors may exhibit long-range dependence. A time-domain sieve-type generalized least squares (GLS) procedure is proposed based on an autoregressive approximation to the...

We review the main New Keynesian inflation equations that have arisen as a result of aggregation from individual firms' price rigidities. We find that, on the whole, they cannot account for inflation persistence, a key feature of the empirical dynamics of inflation, and with important policy...

In this paper we propose a strategy for forecasting the term structure of interest rates which may produce significant gains in predictive accuracy. The key idea is to use the restrictions implied by Affine Term Structure Models (ATSM) on a vector autoregression (VAR) as prior information rather...

In this note we suggest a new iterative least squares method for estimating scalar and vector ARMA models. A Monte Carlo study shows that the method has better small sample properties than existing least squares methods and compares favourably with maximum likelihood estimation as well.

From a CAPM-type model the cost of equity is derived for a firm operating under various foreign tax systems. The firm’s shares are traded in a market which is unaffected by these systems. The cost of capital depends on the foreign tax system, even for fully equity financed projects. This is...

This paper discusses the concept of resourcism' as an alternative to the capability approach. It argues that the term economic resources covers too many different concepts for the term resourcism to be useful when analysing distributional justice. In particular, the resourcism of Dworkin is...

When a monopolistic hydro producer interacts with a competitive thermal fringe, the short-run revenue function of the hydro monopolist is non-concave. This implies that even if the demand function is stationary, equilibrium prices may fluctuate through the year. For given capacities, both hydro...

The bulk of acid depositions, which have harmful effects on the environment, are caused by foreign emissions in many European countries. Therefore, if some countries emit more acids, one cannot be sure that countries that emit less will benefit from reduced acid depositions. However, numerical...

“Green” consumers appear to accept individual responsibility for public good provision. The propensity to take such responsibility may depend on beliefs about others’ behavior, even for consumers motivated by internalized moral norms, not by social sanctions. This can produce multiple...