The letter discusses the contagion effect of the first bank liquidation in Japan. Performing the traditional t-test and Corrado's non-parametric rank test, it is found that the effects of the liquidation were concentrated only on banks that resembled the failing bank.

Japanese data from 1971 and 1995 are used to estimate the marginal rate of substitution between private consumption and government consumption, and to empirically analyse the validity of the Ricardian equivalence theorem. The marginal rate of substitution between government expenditure and...

Tourism employment has grown rapidly (a fact which has been of interest to policymakers concerned with job generation) but it has a marked seasonal character. Several attempts have been made by the industry to lessen seasonality in tourism demand (and hence in tourism employment) by fillng...

The paper presents the results of applying an indicator of local (daily) volatility, based on the literature on forecasting in nonlinear systems to six EMS currencies, using data for the period January 1974-April 1995.

The generality of the Cagan model for money demand is questioned. Some high inflationary economies are hit by external shocks that may have a non-transitory effect on macroeconomic variables including consumer prices, high-powered money, or narrow money which are usually used in these studies....

We propose a proxy for trend unemployment derived from the cointegration property between unemployment rates and world oil prices. Evidence from a sample of OECD countries is presented in support of the hypothesis. We argue that our empirical proxy is superior from an economic perspective to at...

Oswald (mimeo, University of Warwick, 1996) theorizes that a secular rise in homeownership constitutes a possible explanation for the observed rise in unemployment in Europe. Our results provide support for this notion. In particular, the results based on the regional data on Finnish labour...

The objective of this letter is to investigate the dynamic relationship between China's trade balance (T) and macroeconomic variables: domestic and foreign output (Y and Y*), real exchange rate (E), domestic and foreign money supply (M and M*). The ADF unit root results show that the variables...

This paper analyses the dynamic properties of several macroeconomic variables in Norway, using different unit root tests and measures of persistence. For none of the variables can we reject the hypothesis of a unit root in favour of a deterministic linear trend alternative. However, when...

In this paper an ordered response Tobit model is specified to determine the effects of absolute wages and relative overpayment on satisfaction with earnings. The joint estimations of wages and satisfaction with earnings allows us to disentangle the effects of relative and absolute wages on...