The paper examines the stability of the long-run health care expenditure function for the Canadian and US economies. The use of Hansen, and Gregory and Hansen statistics leads to rejection of the stability of both functions. When the instability problems are solved through the inclusion of some...

Using recent theories of growth, this paper presents empirical evidence that export diversification promotes economic growth. This result is robust to different specifications of the growth equations and different measures of export diversification. In developing countries, export...

The joint estimation procedure of Chen and Liu was applied to the 1997 daily Hong Kong stock market index data for outlier detection and model estimation. The results indicate that the handover of Hong Kong's sovereignty to China on 30 June 1997 seems to have had no effect on the index. The 14...

In macroeconomics, consumption functions supposedly demonstrate stable relationships between consumption and disposable income. This letter constructs a simple consumption function of Keynesian type. It also estimates the function and tests if any structural change had taken place in this...

This paper returns to the issue of whether high budget deficits have had any inflationary consequences in Greece. In a recent paper, Hondroyiannis and Papapetrou (1997) report results denying any direct impact of the deficit on inflation. It is shown here that their evidence lacks weight owing...

This paper investigates the demand for major types of meat in Greece for the 1976-1995. The findings indicate that beef and veal has the highest income and price elasticities compared to the rest of meats (mutton, poultry and pork). A quality decomposition reveals the importance of different...

Socially optimal cost-reducing R&D with product durability is studied. Results show that the first period optimal R&D and output with durability exceed the respective levels without durability. The second period R&D and output are identical to the no durability case.

Based on the 1994 survey data of certified public accountant (CPA) firms in Taiwan, and by applying the iterative seemingly unrelated regression (SUR) technique to a simultaneous system of a translog multi-product cost function and its corresponding factor share equations, an attempt is made to...

There is considerable debate in the literature about the relationship between the economic cycle and property crime. Much of the debate centres on the statistical methods used to explore the importance of various economics factors in determining crime. This study argues that more attention...

The main objective of this letter is to compare two concepts of the power of a test developed in the literature on non-nested hypotheses. Using Monte Carlo techniques it is shown that both definitions of power are asymptotically equivalent, but for small samples they differ in some cases very...