The essence of fractal analysis is seeking for a pattern that is independent of scale. This paper examines the existence of long-term memory in nine Asian stock markets together with US and UK indices using the modified rescaled-ranged (R/S) statistic. The modified R/S statistic is robust not...

A full interactive earnings model measures the earnings premium enjoyed by African-American men in cities headed by African-American mayors. After controlling for selection into the labour force, African-American men in such cities are found to enjoy a 7.9% earnings premium, which derives mainly...

The paper examines the causal relationship between tax revenues and expenditures in the G7 countries using cointegration and error-correction methodology. This statistical technique provides additional channels through which causality could emerge. The empirical results show that bidirectional...

The veil of ignorance approach is tested as a basis for empirically determining the shape of the social welfare function for income. An experiment is carried out where the participants choose between different societies that differ with respect to per capita income and the distribution of...

When institutional and financial changes are great, findings about the influence of income and opportunity cost variables on money demand, and the stability of any such relationship, may be influenced by how prices are measured. This paper considers the case of New Zealand, which has experienced...

Forecast rather than actual values of variables are used in an analysis of the property-gilts yield gap to mimic more closely the investor's decision-making environment. The estimated equations combine parsimony with a high level of explanatory power. The yield gap is found to vary...

Data envelopment analysis is applied to the research assessment exercise data collected by the Higher Education Funding Councils in 1992, to study the relative performance of UK university departments of economics. The analysis throws light on returns to scale and on the characteristics deemed...

Greece has regularly been ranked as the country with the highest defence burden in NATO and the European Union. This study, using an error-correction approach, is a preliminary empirical investigation into the economic effects of military spending in Greece during the period 1963-90.

This paper tests the stability of the exchange market pressure model in the case of Korea under a managed floating exchange rate. Using the cusum of squares test, we show that the structural stability was broken in about mid-1986. This is plausible given that there was a sudden surplus in the...

An early-warning model which predicts the extent of sovereign debt reschedulings is developedusing the behavioural assumption thatindividuals (and governments) develop minimum consumption requirements. Sharp and unexpected falls in income and consumption can threaten these minimum requirements,...