Empirical analyses of Cagan`s money demand schedule have broadly speaking suffered from the following problems: (i) Inability to model the data to the end of the hyperinflation. (ii) Difficulties in making congruent models for systems of variables. (iii) Discrepancies between estimated and...

The move to a more market-oriented economy is associated with evidence of increased inequality in the incomes earned by men and women. The context of our study of this question is the recent large-scale reform of the inefficient state sector, which has caused layoffs of urban workers that...

This paper examines oil-dependence and civil conflict in Nigeria focusing on the economic dynamics of resource-induced conflicts. It identifies two dimensions to oil-related civil conflict in the country. The first is the violent rent-seeking political violence that oil-availability generates...

We apply the set up of limited commitment model to empirically test the role of informal risk-sharing ntworks using panel data on informal credit transactions from rural Ethiopia. The empirical estimates provide convincing evidence for the belief that enforcement problem limits the direct role...

Failure in the training market may result from credit constraints and the inability to insure against labour income uncertainty, deterring potential trainees, or labour market imperfections that create external benefits for firms. This paper constructs a model of a training market affected by...

This paper uses the pooled mean group estimator and an extended annual dataset to examine the effectiveness of aid on growth. The results indicate a significant long-run impact of aid on growth, but conditioning aid on `good` policy reduces the long-run growth rate.

This introductory article reviews the main themes relating to the development of new knowledge-based economies. After placing their emergence in historical perspective and proposing a theoretical framework which distinguishes knowledge from information, the authors characterize the specific...

Using a stochastic sequential game in ergodic equilibrium, this paper models limit order book trading dynamics. It deduces investor surplus and some agents` strategies from depth`s stationarity, while bypassing altogether agents` intricate forecasting problems. Market inefficiency adjusts to...

Using a South African data set, the paper poses six questions about the determinants of subjective well-being. Much of the paper is concerned with the role of relative concepts. We find that comparator income – measured as average income of others in the local residential cluster - enters the...