Using the framework of the new trade and endogenous growth theories, this paper finds that factors such as innovation and product quality--proxied by variables such as relative R&D and patenting activity--help to explain the determination of import volumes for both Germany and the United...

This paper attempts to quantify the costs imposed by asymmetric shocks under European Monetary Union compared to free floating. A simple two-country model is examined where policy is set in an optimal, time consistent manner. Nominal and real rigidities are present in both economies, but prices...

This paper presents a study of U.K. earnings over the period 1967-87 aimed at establishing whether wagesetters anticipate future movements in prices. Two models are proposed: the first where agents form rational predictions about future price movements and the second where they use simple...

This paper investigates the role of financial buffer stocks in company sector decisions. A stylized.analytic model is used to consider how adjustment costs in changing dividends can generate a role for a financial buffer stock in any expenditure decision by the firm which has a influence beyond...