According to Wicksell's Classical Dichotomy the money rate of interest depends on the natural rate of interest, but the latter does not depend on the former. If this Classical Dichotomy is false monetary policy may induce hysteresis because the natural rate of interest would depend upon the...

In this paper we analyze the information content of data on inflationary expectations derived from the Israeli bond market. The results indicate that these expectations are unbiased and efficient with respect to the variables considered. In other words, we cannot reject the hypothesis that these...

Using data from the 1981 Family Expenditure Survey we estimate a logit model for the choice between unemployment and employment, using explanatory variables such as tax and social security benefit rates. Other variables represent the characteristics of the households in the survey and...