Tests of purchasing power parity (PPP) are applied to bilateral rates against the Swiss franc for the period of floating exchange rates in the 1920s. The results confirm that the exchange rates of high-inflation currencies tended to move in line with PPP. For low-inflation currencies, however,...

Three empirical models for the choice of entry mode in foreign direct investment are compared. In contrast to the models used in earlier studies where the entry decision is taken to be predetermined, the alternative to refrain from investment altogether is here taken into account. Furthermore,...

An allocative efficiency model based on data envelopment analysis is empirically tested here for evaluating the operational performance of international airlines for the period 1988-90. Results show some robustness of these efficiency measures in terms of stochastic dominance criteria.

This paper raises the question whether population growth is exogenous or endogenous with respect to the development process of Bangladesh during the last three decades. The results of an unrestricted vector autoregression model indicate that population growth does not Granger cause real GDP per...

In this paper Kuznet's U-curve hypothesis is tested on two unbalanced panel data sets of 47 and 62 countries, for the period 1970-93, using two-way fixed and random effects models. Several competing model specifications are estimated and the one best fitting the data is selected by appropriate...

The purpose of this paper is to calculate the cost of capital, the cost of equity and the cost of debt in a world with corporate and personal taxes. We do this in a manner that is consistent with the calculation when there is no tax and when there is corporate tax only. Our results differ from...

The purpose of this study is to establish the determinants of stock market returns for the UK market and to forecast the real capital gain for the Financial Times All-share index using monthly data for the period 1980-1994. Three models are used: (a) a model based on Fama's approach including...

The business cycle implications of 'real business cycle' models are typically summarized by reporting the moments of the filtered model variables. In this letter a procedure to compute the exact moments of the filtered variables is described.

This paper explores the effects that skill and experience have on a baseball player's decision about whether to negotiate with his team or to enter into arbitration. The action taken by players who are eligible to file depends on their perceived trade-off between various types of risk such as...

We introduce a test for randomly sampling of individuals, with as alternative that the data is not randomly sampled due to moving behaviour of individuals, based on duration observations. Furthermore, we apply this test to a particular data set.