In this paper, the coefficient of determination for grouped data is defined as the proportion of between group variation in y that is explained by the regression. This measure is demonstrated to be superior to the one commonly used. A numerical illustration presented in the paper is based on the...

This paper attempts to investigate the empirical validity of the argument that one of the most important welfare effects of inflation is its impact on market power, which many recent New-Keynesian theoretical models of imperfect competition seem to support. Estimates on U.K. manufacturing data...

Rational expectations models in which the forecast horizon is not equal to the sampling interval may result in serially correlated errors. Valid inference requires adjustment to the variance-covariance matrix. This paper outlines SEREM (Statistical Estimation of Rational Expectations Models)--a...

This paper uses a Structural Time Series Model to investigate the behavior of real wages over the business cycle. Estimating a flexible trend using the Kalman Filter enables us to avoid the current controversy surrounding the unit testing issue. Using the unexpected changes in the price level...

This paper reports evidence on the factor content of UK trade in 1984 in terms of both broad aggregates of factors and of disaggregated skill categories. It also reports the result of a similar analysis of the higher educational content of UK net exports. This provides not only a measure of the...

This paper endogenises the job offer arrival rate in a standard search model in order to test the hypothesis that unemployment-related benefits may affect the job search behavior of unemployed workers independently of any reservation wage effect. Using a pooled cross-section of 1484 unemployed...

Unit root tests are frequently used to test long-run economic relationships. However, many of these relationships are not expected to follow simple time-series processes due to transaction costs boundaries or thresholds. This paper finds that the power of unit root tests in detecting long-run...

This note suggests that the logistic function is often not suitable for modeling aggregate demand or ownership levels because of the fact that the independent variable is defined to lie between minus and plus infinity (unlike many economic variables which are positive). This imposes strictly...