The Scottish economy has experienced relative and, since 1974, absolute declines in manufacturing activity. Using econometric specifications which relate manufacturin g output to total domestic U.K. and world demand, the authors demonst rate that this is a serious regional problem, despite the...

In this paper, the authors estimate the marginal rate of substitution between aggregate nondurable consumption and government expenditure using U.S. data from 1953 to 1993. This estimate is an important input to any attempt to assess the overall effectiveness of fiscal policy since it directly...

In this paper, the authors propose a new procedure for causality testing using nonparametric additive models. They argue that the major advantage of their proposed method is that it can be used if the underlying data generation process (DGP) is either linear or nonlinear. The authors' results...