Previous research by Smyth on the relationship between inflation and productivity growth, reported in this journal, concluded that 'The negative effects of inflation on growth are significant and substantial' (Smyth, 1995). We find that standard causality tests call into question the direction...

This paper briefly explains why there may be a 'tax clientele' induced bias in the observed yield curve and attempts to estimate the size of this tax clientele bias in the term structure of UK interest rates. A method is based on the econometric technique developed by Nelson and Siegel (Journal...

It seems that the random-walk property of stock prices is well established. However, some studies argue that the mean reversion of the stock prices has its theoretical and empirical support and the conventional unit-root tests have weak power against stationary alternatives. This paper uses...

This article examines whether or not federal budget deficits impact the stock markets of Australia and France. According to the stock market efficiency hypothesis, current stock market performance fully incorporates all past policy actions and implies that there should be an insignificant effect...

Using the PSID and 2SLS estimation, this paper provides cross-sectional empirical evidence for the job-matching model. The empirical model which specifies wages as a function of expected tenure (rather than merely current tenure) more accurately describes the observed data.

The paper empirically quantifies technical change for the UK retail banking sector between 1984 and 1995. A time trend model is used to measure average technical change. Bank production is represented with 'intermediation' and 'production' models. Translog cost models are estimated using a SUR...

In a recent paper in this journal, Manning showed that the ordinary least squares (OLS) estimator of regression coefficients in a logit model with continuous and bounded dependent variable measured with error is unbiased but inefficient. This note shows that, contrary to the author's claim, the...

In this paper we develop a method to estimate the rate of depreciation of human capital. The model is estimated on data for Great Britain and the Netherlands. It is found that the rate of depreciation of education is 11-17% per year.

This paper presents a test of the P-Star model using US quarterly data over the period 1951:1-1991:4. The basic formulation of the P-Star model, which is derived from the quantity theory of money, is manipulated to obtain an equation for the price level in terms of a stochastic trend and the...

Recent contributions have pointed out to a beneficial effect of macroeconomic stability and market liberalization on economic growth. This paper analyses this issue empirically by means of cointegration techniques, using annual data from the Spanish economy, 1962-95. Some proxies of...