This paper models regional earnings and unemployment in the ten regions of Great Britain between 1972 and 1995, paying particular attention to their interaction and to the important influence of the housing market. In contrast to Blanchard and Katz (1992, 1997) for the United States, we find...

Franchising involves a variety of contractual and ownership arrangements within a single company. In recent years, a great deal of effort has been made to understand this increasingly popular organization (Lafontaine, 1992, 1993, and Lafontaine and Slade, 1997). There are at least two stylized...

This paper provides cumulative distribution functions, densities, and finite sample critical values for the single-equation error correction statistic for testing cointegration. Graphs and response surfaces summarize extensive Monte Carlo simulations and highlight simple dependencies of the...

Tax competition between two countries is considered in a trade-and-location setting with differentiated products and monopolistic competition. There are two groups of workers, mobile ones and immobile ones. Taxes are used for producing a public good. It is shown that an equilibrium with mobile...

A new non-parametric bootstrap is introduced for dependent data. The bootstrap is based on a weighted empirical-likelihood estimate of the one-step-ahead conditional distribution, imposing the conditional moment restrictions implied by the model. This is the first dependent-data bootstrap...

We examine the theoretical foundations of the hold-up problem. At a first stage, one agent decides on the level of a relationship specific invesment. There is no contract, so at a second stage the agent must bargain with a trading partner over the surplus generated by the investment. We show...

The standard expected utility model is augmented by allowing individuals to receive additional utility in states in which they consider themselves victorious and to lose a utility increment in which they consider themselves defeated. The resulting event-dependent expected utility model is used...

This paper presents a class of examples where a nonmonetary economy converges in a tatonnement process to a monetary equilibrium. Exchange takes place in organized markets characterized by an array of trading posts where each pair of goods may be traded for one another. A barter equilibrium with...

This paper has two aims. A specific goal is to examine the determinants of protection policy in Turkey. A second, broader goal is to test the recent insights of the political economy models of trade policy and assess their contribution to the empirical investigation of associations between...

Should international trade agreements be extended to include negotiations over environmental policy? The answer depends on whether countries distort levels of environmental regulations as a secondary means of providing protection to domestic industries; our results suggest that they do. Previous...