This paper discusses model based inference in an autoregressive model for fractional processes based on the Gaussian likelihood. The model allows for the process to be fractional of order d or d – b; where d ≥ b 1/2 are parameters to be estimated. We model the data X, …, Xт given the...

This article introduces investments into the discussion of the properties of the share economy. We show that gross profit sharing gives biased incentives to the owners of the firm such that the stationary state capital stock is lower than in the wage economy when the payment to the workers is...

In this paper I show that the idea that firms faced with a liquidity constraint display "excess sensitivity" of employment to shocks is not correct. The employment decision is independent of the financing constraint and artificial data shows that there is no such excess sensitivity.

The author studies the effect of immigration on world welfare. The world consists of two areas, South and North, the former populated by low-skill workers, and the latter by low- and high-skill workers. Immigrants from the South to the North have two effects in the North: a mixed native-foreign...

The notion that foreign aid and foreign direct investment (FDI) are complementary sources of capital is conventional among governments and internationalcooperation agencies. This paper argues that the notion is incomplete. Within the framework of an open economy Solow model we show that the...

The Maastricht European Council clarified above all two features of the so-called stage II. (1) the duration of the stage for those participants who meet the requirements of convergence to qualify for full economic and monetary union (EMU); and (2) the need to focus on these issues, including...

Some methods for the evaluation of parameter constancy in cointegrated vector autoregressive (VAR) models are discussed. Two different ways of re-estimating the VAR-model are proposed; one in which all parameters are estimated recursively based upon the likelihood function for the first...

We consider a standard insurance economy where consumers are supposed to vote over menus of insurance contracts: A menu of contracts is majority stable if there does not exist another menu which is supported by an appropriate majority of consumers. We compute the smallest level of super majority...

Economic history in general and agrarian history in particular is seriously hampered by the lack of production and income data before the middle of the 19th century. Analysis of British agriculture therefore has to rely on indirect evidence. This paper discusses previous attempts and suggests a...

According to the first generation models of endogenous growth based on expanding product variety, the market economy unambiguously generates too little R&D. Later, by disentangling returns to specialization from the market power parameter, it was shown that with sufficiently low returns to...