This paper examines the nature and importance of seasonal fluctuations in the U.K. equity market. The authors' analysis reveals that returns on the FT-A All Share index exhibit significant seasonality that is best described by a deterministic seasonal model. The authors also establish that...

This paper develops a model where agents learn about the probability of devaluations in a fixed exchange rate regim e. The true probability of devaluation is assumed to be low (or zero) b ut agents are initially unsure about the government's intentions and st art with a high prior belief....

The authors examine the effects of removing tariffs and trade barriers on the behavior of utilitarian trade unio ns using a two-country macroeconomic model. A "hump-shaped" relationshi p between wages and the degree of corporatism emerges here, analogousl y with closed-economy models. The...