This paper tests New Classical and Keynesian explanations ofoutput determination within an encompassing "factor utilization"model wherein the output decision by producers is modelled as thechoice of a utilization rate for employed factors. In thisencompassing model, the ratio of actual to normal...

This chapter presents some empirical results from studies of macroeconomic interdependence. It focuses on studies that involve linked macroeconometric models of two or more countries. It presents specific versions of the models and analysis with special attention to the role of exchange rates in...