The finding of negative sample selection effects in estimated wage offer equations is often viewed as being 'problematic', resulting from misspecification of the wage and selection processes. This note shows that negative sample selection effects are plausible in the context of Heckman's...

This paper applies seasonal integration and cointegration tests to assess the non-stationary characteristics of velocity using 25 years of quarterly unadjusted New Zealand money and income data. Velocity is clearly non-stationary on the basis of the seasonal unit root tests and there is some...

This paper provides a brief overview of tests for stationarity and cointegration and applies them in an attempt to establish the validity of purchasing power parity theory for the Australian, New Zealand and Singaporean currencies using quarterly time series for the period 1973 to 1992.

Although it has been argued that unemployment results in an increased suicide rate in a society, this association was found in the present study in only a minority of a sample of nations with data available for the period 1950-85.

We apply a new approach to test the long-run purchasing power parity theory of real exchange rate movements for the UK. The question of whether real exchange rates have a unit root or are mean reverting is set in the more general framework of fractionally differenced time-series models. Our...

The theory of hysteresis in the earnings function is tested by investigating its existence across a variety of occupations. Hysteresis signals are detected for professionals and executives, but not for manual construction workers or for the self-employed, so lending support to the theory.

The paper employs a simple threshold model of US bilateral real exchange rate dynamics. The econometric results appear consistent with the existence of a 'neutral band'. Real exchange rates seem to revert to purchasing power parity (PPP) levels only outside the neutral band.

The purpose of this paper is to examine the initial pricing of a form of convertible preferred stock, PERCS (preferred equity redemption cumulative stock). The analysis shows that investors may pay more for the PERCS than the value of the individual components of the financially engineered...

The objective of this paper is to investigate the subscription price decision in a common stock rights offering. The competing prediction of the Heinkel and Schwartz model, in which a higher subscription price signals a higher quality firm, and the Myers and Majluf model in which the firm sets a...