In this paper we have tested various explanations for differences in rates of economic growth across states. We found no evidence consistent with Olson's hypothesis that differences in state age (a proxy for the strength of special interest groups) can explain differences in state growth....

Standard autocorrelation corrections applied to cointegrating regressions can lead to erroneous first-differencing. Such outcomes are shown to be possible under a range of environments, including cases with autocorrelation coefficients substantially less than 1. First-differencing of a...

In this paper, the authors present evidence that neither large differences in inflation nor long time periods are necessary for a finding favorable to purchasing power parity. Evidence from cointegrating regressions and tests of the real exchange rate indicate that purchasing power parity held...

Similar but alternative specifications of tests of forward rate unbiasedness provide conflicting evidence on the rejection of the hypothesis. These conflicting results are reconciled by demonstrating that although the root cause is simultaneity bias, the severity of this bias and the resulting...