This study investigates the sources of cross-country income disparities in the context of time series dynamics for both aggregate and sectoral levels. We first introduce a new approach for testing income disparity persistence across countries. The method proposed by Pesaran, Pierse, and Lee...

This paper develops a shopping-time model in an open economy framework to motivate the specification of money demand. This microfoundations-of-money model allows me to choose which variables, and in what forms, should be used in the empirical money demand function. In particular, the model...

Previous research indicates that the price-output correlation is time varying. This paper therefore estimates a VAR with a bivariate GARCH error process to obtain a time series of quarterly estimates of the price-output correlation for the United States for the period 1876:4-1999:4. The...

It is generally agreed that the price-output correlation in the United States was positive prior to the Second World War, but became negative during the postwar period (at least by 1972). This paper offers evidence that the price-output correlation changed signs because of a decrease in the...

This paper uses the short-run restrictions implied by the aggregate demand-aggregate supply model as an aid in identifying structural shocks to aggregate demand and aggregate supply. Combined with the Blanchard-Quah restriction this allows estimates of the slope of the aggregate supply curve,...

This article investigates the channels through which the short-term interest rate is used as an instrument to stabilize the exchange rates in Asia during the financial crisis in the 1990s. A time-varying-parameter model with Generalized Autoregressive Conditional Heteroscedasticity (GARCH)...

It is generally agreed that the price-output correlation in the United States was positive prior to the Second World War, but became negative during the postwar period (at least by 1972). This paper offers evidence that the price-output correlation changed signs because of a decrease in the...

This article investigates whether the Central Bank of China in Taiwan (CBC) would have had a more successful monetary policy during the period 1978:3 to 1999:4 if it had followed an optimal rule rather than the discretionary policies that were actually employed. The article examines the use of...