This paper provides empirical evidence on the dynamic effects of uncertainty on firm-level capital accumulation. A novelty in this paper is that the firm-level uncertainty indicator is motivated and derived from a theoretical model, the neoclassical investment model with time to build. This...

This paper analyses the asymptotic and finite-sample implications of different types of non-stationary behaviour among the dependent and explanatory variables in a linear spurious regression model. We study cases when the non-stationarity in the dependent and explanatory variables is...

This paper examines whether indicators of consumer and business confidence can predict movements in GDP over the business cycle for four European economies. The empirical methodology used to investigate the properties of the data comprises cross-correlation statistics, implementing an approach...

Using global data for the period 1960-99, we model military expenditure. Neighbours' military spending and development aid are important determinants of military expenditure. An implication of the model is that there are regional arms races which are fuelled by aid. Potentially, aid is...

This paper uses a data set collected among inhabitants of Amsterdam, to study whether wages of prime-age male workers are affected by cannabis use. The analysis shows that recent cannabis use has a negative effect on wages. The size of the wage effect depends on the age of onset. The earlier the...

In recent years, there has been a renewed interest in the relationship between market structure and innovation activities at an industry level. The paper examines the relationship between these for the manufacturing sector in a sample of 33 countries. It applies a recently developed method,...