This note presents some empirical evidence on the presence of nonlinear adjustment in the PPP relationship. Nonlinearities are shown to be captured by a polynomial in the error correction term. It is also shown that there is some evidence for PPP when the hypothesis is tested over the period of...

The relationship between the spot and forward exchange rates during the 1920s is reexamined for five major currencies with daily data. Johansen's (1988, 1991) methodology is used to test for cointegration between spot and forward exchange rates. The results show that the spot and forward...

The investment-output ratio is often used as a regressor in empirical studies of economic growth, although Scott (1991) is the only serious proponent of its being theoretically appropriate to do so. Evidence is here adduced that when capital stock data are available they ought to be used in...

Johan Bring (1994), in his criticism of my paper on Cameroon (Mbaku, 1993), raises several issues related to the definition of aid, the time span used in the study, and the methodology adopted. In this reply, I shall address these issues and outline what I believe to be the key contributions and...

In this study, the impact of trade on purchasing power parity was tested for a sample of Asian currencies using official and black market exchange rates. Cross exchange rates were used in order to directly compare prices between countries. The efficient markets version of PPP cannot be rejected...

The relationship between price instability and inflation is re-examined using the data for the People's Republic of China over the period 1953-91. The empirical results indicate that Friedman's conjecture of positive relationship between price instability and inflation is valid in China, where...

Empirical estimates of the Lorenz model of chaos are reported here for the conditional variances of returns of selected mutual funds over the period September 1988 to April 1993. These estimates show that chaotic instability may occur with a positive probability.

This paper estimates the determinants of manufacturing firm location in an urban area, concentrating on the impact property taxes have on firm location. This note, which estimates location probabilities, provides further evidence under an alternative methodology on the role local taxes play in...

Previous research has shown that female workers, unlike other minorities, continue to earn a wage premium in the US public sector. We examine the nature of government wage differentials for female workers separately for city dwellers and non-city dwellers. A bivariate selectivity approach is...