The New Keynesian Phillips Curve (NKPC) was developed as a response to the New Classical critique that Keynesian macroeconomics lacked micro-foundations. The NKPC provides theoretical micro-foundations that attempt to explain, inter alia, nominal rigidities and, explicitly price stickiness. This...

The present paper is an initiative to pin down major factors behind exorbitant inflationary pressures in the global economy. The paper mentions that among other factors productivity shocks, external shocks, inflationary expectations and conversion of food crops into fuel generation are the major...

The object of this paper is to present an exposition of Efficiency Wage theory, and to test its basic assertions in the context of Pakistan. The Great Depression of 1929 showed that labour disequilibrium persists for long periods of time. One of the causes of this was rigidity of nominal wages,...

This paper investigates how an increase in the United States Federal Fund rate affects the United States economy and how the effects are transmitted to the Canadian economy using the factor-augmented VAR (FAVAR) approach of Stock and Watson (2005) and Bernanke et al. (2005). A distinguishing...

In this paper a factor-augmented vector autoregressive (FAVAR) model is estimated to characterize the dynamic effects of shocks in the personal income tax rate in the United States on United States and Canadian economies. The representation and the estimate of the FAVAR model is based on Stock...

The recent flows of immigrants to many countries has been categorized by both legal/illegal migrants. Such migration flows have occurred despite the presence of domestic unemployment of various categories of labour. It has also been observed that migration has lowered the reward of unskilled...

This paper develops a duopoly model of vertical product differentiation where two domestic firms incur variable costs of quality development. These domestic firms can purchase a superior foreign technology through licensing. Outcomes between Bertrand and Cournot competition are compared. We find...

This article examines the consequences of changes in final and intermediate good tariffs on structural adjustment, urban unemployment, and the real exchange rate in the presence of a free trade zone (FTZ) and foreign capital in the host country. The location of the FTZ and the disaggregation of...