The static differentiated product demand model when applied to products with rapid product turnover and declining prices, yields implausible results. One response is to explicitly model the inter-temporal choices of consumers but computational demands require restrictive assumptions on consumer...

In this paper I explore the concept of innovation. The aim is to bring to the fore the importance of learned habits on the motivation to innovate. Innovation is a learning process which results in a new product, a new process, a new movement, a new organisation or a new source of raw materials....

Wright (1990) argues the origins of American industrial success are in the institutions that enabled exploitation of natural resources. These institutions, argue David and Wright (1997), included the state and US geological surveys and universities that worked closely with industry. However,...

We find evidence for asymmetric behaviour in Australian monetary policy. During 1984-1990, the Reserve Bank of Australia acted with considerable discretion yielding poor performance of an interest rate rule. However it behaved asymmetrically to inflation and the output gap in downturns and...

This paper studies the usefulness of the P-star model in the analysis of the behaviour of prices in Australia and New Zealand. The P-star model is based on the quantity theory of money and the belief that the price level tends to move towards the equilibrium price level. The main contribution of...