While paying careful attention to the stochastic properties of income process, this paper tests the joint rational expectation and permanent income hypothesis (RE/PIH) to clarify how and to what degree financial integration delinks national income and consumption. It is shown that both the OECD...

This study empirically explores the following issue: Does corruption fuel conspicuous consumption? It examines the existence and magnitude of any potential corruption-effect on conspicuous consumption expenditure. Regression analyses of an unbalanced panel data for 20 OECD countries between 2004...

Via partnership agreements like the Cotonou Partnership Agreement, the EU provides African countries with access to its markets and asks for compliance with a given set of good governance norms and procedures. While the EU markets are significant for African countries, African markets are not...

The two-gap model of economic growth implies that different constraints on economic growth, namely the savings and the foreign exchange availability, are binding at different times. This article estimates these varying binding constraints in 16 countries in East and Southeast Asia and Latin...

In studying the Great Depression, Galbraith asserts that the higher the transitory income the higher the corruption. For a panel of 39 countries over 13 years, 1995-2007, Galbraith's claim holds. Regression analyses also confirm that the higher the permanent income, the lower the corruption.