The joint behavior of investment and the current account is derived as a triangular simultaneous equations model. To estimate this model for the G7 countries, we propose a full-information GLS estimator for panel data that extends Zellner-Theil three-stage least squares estimator and allows for...

The paper investigates whether it is the level of inflation, changes in the inflation rate or unanticipated inflation which influence the variability of sectoral output growth rate, using the U.S. monthly industrial data from 1957 to 1997. We experiment a range of specifications - our main...

This paper considers how the structure of an open economy determines its flexibility in responding to external shocks. Inter- and intrasectoral reallocation of both expenditures and factors of production are shown to mitigate the consequences of a severe terms-of-trade shock. We demonstrate that...

One of the costs of high levels of in ation may be misperceptions of relative prices and excessive volatility in sectoral output. This paper therefore examines the relationship between the level of inflation and sectoral output growth variability in Canada from 1961:1 to 1995:4. Despite the...

This paper uses a poverty intensity measure to provide additional empirical evidence on the assimilation of immigrant cohorts over time in Canada. This method is used because a reliable, and conservative, indicator of the poor integration of immigrants is the disproportional, prolonged poverty...