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 paper examines if the law of one price holds under different exchange rate regimes and if a simultaneous relationship exists among prices of different countries. The findings show that prices in industrial countries are related, as suggested by the monetary approach. Confirming the law of...

This paper examines the J-curve hypothesis for US agricultural and manufactured goods, using the Shiller lag model. The results support the J-curve effect for agricultural goods, but not for manufactured goods. These findings explain why many studies in the literature fail to support the J-curve...

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...

This paper examines how energy tax cuts, offset with income tax increases, affect production, consumption, and total welfare in the Philippines economy. Our results show that energy tax cuts expand the energy and nonmetal mining sectors, but decrease output in the manufacturing, agricultural,...

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...

The authors examine two questions that are relevant to current policy issues: (1) is there a positive response of aggregate demand to advertising? (2) what is the reaction of consumers to government health warnings and media policy? The results support the hypothesis that advertising increases...

A simultaneous demand and advertising system is used to examine the response of aggregate cigarette demand to advertising and the reaction of consumers and industry to government health warnings and media policy during 1952-84. The results indicate that advertising increases demand and that...