This paper presents a 'strong hysteretic' version of Okun's Law, that is, a version of the law in which 'history matters.' In this version of the link between fluctuations in unemployment and growth, the most important past growth shock exerts an influence on the current unemployment rate. A...

This paper represents the first attempt to apply a stochastic dominance (SD) approach to examine the efficiency of the UK covered warrants market. Our empirical analyses reveal that neither covered warrants nor their underlying shares stochastically dominate the other, indicating the...

No satisfactory method for measuring and presenting the performance of confidence regions can be found in the literature. Techniques for measuring the effectiveness of confidence regions and for the graphical display of simulation evidence regarding the coverage and effectiveness of confidence...

We propose a nonlinear heterogeneous panel unit root test for testing the null hypothesis of unit-roots processes against the alternative that allows a proportion of units to be generated by globally stationary ESTAR processes and a remaining non-zero proportion to be generated by unit root...

This paper applies recently developed heterogeneous nonlinear and linear panel unit root tests that account for cross-sectional dependence to 24 OECD and 33 non-OECD countries’ consumption-income ratios over the period 1951–2003. We apply a recently developed methodology that facilitates the...

This paper proposes a bootstrap artificial neural network based panel unit root test in a dynamic heterogeneous panel context. An application to a panel of bilateral real exchange rate series with the US Dollar from the 20 major OECD countries is provided to investigate the Purchase Power Parity...

The purpose of this paper is to assess the level of accounting risk that banks, in both emerging and recently developed countries, face by using derivative instruments. On the whole, results show that forwards negatively affect leverage risk, the use of swap contracts has negative effect on...

This paper responds to Backhouse's (2004) claims that there is no antagonism between history and equilibrium and no case to be made in principle against equilibrium analysis. We first show that Backhouse's partial defense of equilibrium analysis has already been encompassed by heterodox theory....

During the last years, there has been a growing interest for the Danish “flexicurity” system all over Europe. Following the European Commission, the subtle combination of flexibility and security chosen by the Danes would even be a matrix of inspiration for the reform of the European labour...