This article extends the IS-MP-IA model (Romer, 2000) and applies the GARCH process (Engle, 1982, 2001) to study output variations in Slovenia. Equilibrium GDP in Slovenia is found to have a positive relationship with real depreciation and the world output and a negative relationship with the...

Extending Ball and Mankiw (2002) and applying the Hodrick-Prescott filter (1997), this paper estimates the time-varying NAIRU for France, Germany, and Italy. Estimated slopes vary from -0.404 for France to -0.647 for Italy. NAIRUs for France and Germany have been on the rise in recent years...

The portfolio model of asset allocations is used to estimate the demand function for real M2 in the United States. The explanatory variables include real return on real M2, real returns on stocks and bonds, wealth, and the expected inflation rate. The cointegration test shows that the demand for...

This paper examines output fluctuations for Lithuania by applying the IS-MP-UIP model. Comparative-static analysis is applied to find the possible sign of a change in an exogenous variable on the equilibrium real GDP. The generalized least squares method is employed to estimate consistent...

This paper studies the effect of currency depreciation on the output level in four Latin American countries. An empirical model that includes monetary, fiscal and exchange rate variables is developed. Two versions of this model, one with real exchange rate and another with nominal exchange rate...

A commonly encountered problem in empirical research involves the choices researchers have to make with respect to data, research methodologies, and/or econometric estimation techniques. In many cases researchers are having to make these choices with less than perfect information. In such cases,...