The presence of transaction costs in trading implies a non-linear adjustment process of real exchange rates towards Purchasing Power Parity (PPP). This may make the traditional tests for PPP using a linear framework, which generally tend to refute the PPP hypothesis, unreliable. This study...

This paper proposes a new procedure to test for a unit root in a nonlinear framework, with three separate contributions. First, the study proposes a modification of the ESTAR model to account for cases where the adjustment mechanism towards equilibrium is not symmetric. Second, we develop a...

We evaluate the economic significance of linguistic barriers to communication in 226 US cities from 1980 to 2000 to test for the ‘paradox of diversity', namely, whether knowledge exchange is inhibited by linguistic barriers to communication across social groups. We find: one, linguistic and...

One important component of almost all theoretical models in fishery is a fish transfer function. However, most of the current fish transfer functions have significant shortcomings. This paper contributes to the literature on fishery management by showing some of shortcomings of commonly used...

A 'bottom up' regional Computable General Equilibrium Model (CGE) model for Vietnam is constructed for 28 commodities and 8 regions (using a GSO input-output table for 2005). The model is used to analyze the recent dramatic increases in the world price of rice on the regional economy of Vietnam,...