The paper illustrates finite sample problems of regression models with I(1) variables. The importance of drifts on test statistics is analysed both analytically and by simulation methods. Moreover, Haavelmo's famous example for the presence of some simultaneous equation bias is considered in the...

This chapter reviews the empirical research on the relation between defense spending and economic growth. A broad flavor of the approaches adopted by different scholars is provided through a list of selected studies on the topic since 1973 and an outline of the variations over Benoit's original...