This paper presents a simple model of the effects of exchange rate flexibility on the transmission of income shocks. The starting point is the traditional channel through exports and imports known as the "locomotive". The intertemporal exchange rate model presented here also allows for the...

Some 300 profit-sharing schemes were introduced in Britain between 1865 and 1913. These were intended both to raise labour productivity and to improve industrial relations in the firms concerned. These schemes appear to have increased significantly the wages of eligible workers but were...

Public ownership is viewed as a restriction on the portfolio of equities held by investors. Three conditions are required to justify such restrictions. First, monitoring and coordination create concentration in supply or demand. Second, complete contracts must be infeasible or undesirable....

Monetary and fiscal policy are introduced into a version of Hart's "Keynesian features" model of imperfect competition. Individuals' labour supply is exogenous, so, under perfect competition, output is always at the exogenous "full employment" level. Imperfect competition takes the form of...

The paper analyses the determinants of interwar unemployment using a previously unexploited quarterly data set for 1924-39. Individual equations for insured employment, insured unemployment and the nominal wage rate are estimated and tested. The results indicate that the real wage was an...

We consider a model in which two countries are involved in arms accumulation. The West is a decentralized market economy whose government uses optimal taxation to provide a public good, defense. The East is a centrally planned economy. Utility depends on consumption, leisure and defense; defense...

During the 1980s youth unemployment rates have persistently exceeded unemployment rates for adults, in Britain as in other OECD countries. In the interwar period, youth unemployment rates in Britain were dramatically lower than those for adults. This paper explores possible reasons for the...

This paper discusses the best way to formulate and estimate a dynamic econometric model when interest focuses mainly upon its long-run properties. Using results derived for the more general context of transformed regression models, it is shown how point estimates and the standard errors of...

Specialists in international relations have argued that international regimes operate smoothly and exhibit stability only when dominated by a single, exceptionally powerful national economy. In particular, this "theory of hegemonic stability" has been applied to the international monetary...

In the context of monopolistic price adjustment and price setting behavior on the part of firms, it is shown that a large discrete adjustment of the nominal exchange rate as opposed to a crawling peg is likely to result in faster adjustment of domestic prices. This is the case because an...