In this paper we investigate the capital structure of Hungarian firms using a cross-section and a panel data approach. The data set constitutes of balance sheet data and information on market structure for 1100 firms from 1992 to 1996. We find evidence of forms of financial market imperfections,...

The relationship between wages, prices, productivity, inflation and unemployment in Italy, Poland, and the UK between the 1960s and the early 1990s is modelled as a cointegrated vector autoregression subject to regime shifts. For each of these economies there is clear evidence of a change in the...

The value of selecting the best forecasting model as the basis for empirical economic policy analysis is questioned. When no model coincides with the data generation process, non-causal statistical devices may provide the best available forecasts: examples from recent work include intercept...

There are many instances in the statistical literature in which inference is based on a normalised quadratic form in a standard normal vector, normalised by the squared length of that vector. Examples include both test statistics (the Durbin-Watson statistic, and many other diagnostic test...

This paper considers the implications of structural breaks, such as have occurred in many transition economies, for econometric modelling based on the multivariate cointegration paradigm. It outlines recent developments on the identification of linear cointegrated systems, discusses some...

This note is a response to an unpublished paper by Evans and Thomas (1998) of which we have recently become aware. Evans and Thomas (1998) take issue with a paper that we published some years back on 'Cooperation and Effective Computability' in repeated games (Anderlini and Sabourian 1995). In...

A two-country differentiated duopoly model is set out in which economic integration increases firms' incentives to invest in R&D, purely through the effect of increased intensity of competition between firms. The model is extended to incorporate knowledge spillovers, which, if related to the...

There is much debate, but surprisingly little evidence, concerning the impact of primarily supply side Active Labor Market Programs (ALMPs) in labor markets characterised by weak labor demand. The usual argument is that we might expect ALMPs to have greater impacts in tight labor markets than in...

The paper builds a theoretical model to analyse the interaction between minimum wage legislation and tax evasion by employed labour. The firm and the worker agree on the amount of earnings to report to the fiscal authorities, which possess an imperfect detection technology. The introduction of...

We show that the 'fear' of globalisation can be rationalised by economic theory in the standard AD/AS equilibrium model, if we substitute the coordinational role of the Auctioneer by an implementation device based on learning (Guesnerie, 1992). When endowing producers with a learning ability to...