We estimate mark-ups of price over marginal cost for UK manufacturing, based on the approach of Hall (1988). We also extend his method to allow for varying mark-ups over industries and the cycle. Using data on 16 two-digit industries, 1968-89, we find: (1) the average mark-up in UK manufacturing...

This paper addresses the question whether high nominal and real long-term interest rates are associated with larger budget deficits. The authors use a loanable funds model framework that allows the combination of the characteristics of the term-structure, with policy variables, influencing...

The paper uses Family Expenditure Survey data to estimate a reduced form, cross-section model, of mortgage demand. A double hurdle model is estimated which takes account of potential mortgage rationing. The model contrasts with the usual limited dependent variable model (Tobit) where zero values...

In this paper we present the first application to unemployment duration analysis of a mixture distribution model, initially proposed in the biosciences literature by Blackstone, Naftel, and Turner (1986). The model is characterized by the decomposition of the aggregate hazard function into a...

This paper investigates the relationship between intrahousehold inequality and levels of household welfare. Under certain conditions it is demonstrated - with both the unitary model of the household and with some collective models - that the relationship between household welfare and inequality...

This study examines some finite-sample properties of a new modified Dickey-Fuller test, called the DF-GLS test, which has been shown to be more powerful than standard unit-root tests. The study shows that the lag order can significantly affect the critical values of the test. This points to the...

This study develops three specification tests for the competing risks duration model. They include a general test for misspecification and specific tests for heterogeneity and defective risk distributions. The last two tests involve null hypotheses located on the boundary of the parameter space...

In this paper, the authors study the economic news, as reflected in the announcements of the United States trade balance by the Commerce Department, to illustrate the importance of revised data versus preliminary data to economic agents. A new methodology has been developed here to study how...