In this paper we investigate if the predictions of three different models of capital adjustment costs are consistent with the observed investment patterns among manufacturing firms in five African countries. We document a high frequency of zero investment episodes, which is consistent with both...

In this paper two issues, which have been the subject of much multidisciplinary research, are investigated. The first is whether consumption expenditure can be treated as a measure of welfare. The second is whether larger households can be viewed as richer than smaller ones. These issues are...

This paper investigates the implications of different adjustment mechanisms for shadow pricing traded and nontraded goods in a flexible price model. A foreign exchange equivalent rule that can be readily adapted whatever the adjustment mechanism is derived. It is shown that traded commodities...