This paper attempts to reconcile the differences in previous studies of the tests of foreign exchange market efficiency. The results show that the market efficiency tests depend on the choice of model between the level and the percentage change specifications. Cointegration testing results and...

Using a multivariate vector autoregression (VAR) model, this paper investigates if sectoral shifts, inflation uncertainty, or demand shocks are the primary cause of unemployment fluctuations in the postwar US economy. A sectoral shifts variable (cross-section volatility), an ARCH measure of...

Although theoretical discussion of Factor Price Equalization (FPE) theorem has been quite prolific in the international economics literature, empirical tests of the FPE theorem have been very limited and inadequately performed. In this paper, we use Johansen's multivariate cointegration testing...

Hourly labor costs in the manufacturing sector of seven EC countries, the USA and Canada are used to test the factor price convergence (FPC) by employing Johansen’s multivariate cointegration tests. We also examine if there is a two-way causality in wages between two groups of countries...

This study examines the general equilibrium effects of different export promotion policies on imports and production of importables and exportables. Unlike other studies, land as a factor input in the production function has been included. Thus, this article develops a three-factor production...