The authors provide a detailed empirical analysis of Canadian city housing prices. They examine the long-run relationship between city house prices in Canada from 1981 to 2005 as well as idiosyncratic relations between city prices and city-specific variables. The results suggest that city house...

In this paper, we examine the idea that a general model of consumption should allow for the direct effect of government expenditures in a two-good permanent-income model. We show, given an assumed preference specification, that there is a cointegration restriction implied by an intraperiod...

Since Kydland and Prescott published their famous article on rules versus discretion in 1977, the literature on the time-inconsistency problem of economic policy expanded rapidly. While much of the literature is highly technical and can seem esoteric, there is generally an underlying...

The menu-cost models of price adjustment developed by Ball and Mankiw (1994; 1995) predict that short-run movements in inflation should be positively related to the skewness and the variance of the distribution of disaggregated relative-price shocks in each period. We test these predictions on...

We document a robust and interesting relationship between the real domestic price of oil and real effective exchange rates for Germany, Japan and the United States. We also offer an explanation why the real oil price captures exogenous terms of trade shocks, and why such shocks could be the most...

In a recent paper Mercenier and Sekkat (1988) conclude that the Bank of Canada has followed a policy of exchange rate targeting using the money supply. We reexamine their results using a different estimation approach and with different assumptions about the forcing process of the exogenous...