The authors find evidence from Australian time-series data supporting two hypotheses about the determination of labor absence. First, labor absence modeled in a utility-maximizing framework that stresses the opportunity cost of labor absence receives considerable support from the data. Variables...

Did inflation targets reduce the level of expected inflation in Australia, Canada, New Zealand, Sweden, and the United Kingdom? In this note, predictions of forecasts by professional forecasters are constructed for five consecutive 12-month periods after the announcement of targets. These...

We adapt techniques from the literature on chaos and nonlinear dynamics to detect misspecification in models of serially independent data by checking for dependence between the regressors and disturbances. Our tests are nonparametric in that they determine whether the distribution of the...