We find an example where real exchange rate (RER) is stationary and the nominal exchange rate and the price levels are cointegrated but purchasing power parity (PPP) does not hold, which reveals a fault of the unit root and cointegration tests in this use. We argue that the distribution of an...

In the present paper we propose that in states with relatively weak central authorities, decision makers had to develop market oriented organisation solutions to successfully face a grave external threat, and these solutions proved to be efficient. Using an interdisciplinary approach that...

This study experimentally tests the performance in predicting decisions of a reciprocity model that was proposed by Dufwenberg et al. (2004). By applying a new approach, the study directly and individually predicts a subject's future decision from his past decision. The prediction performance is...

Governments sometimes promote rules backed by sanctions too weak to make obedience privately optimal. Factors that may help make such rules effective include the presence of informal sanctions by peers, and implementation through voting. I study the impact of non-deterrent formal sanctions on...

We study the relationship between the cognitive load manipulation and strategic sophistication. The cognitive load manipulation is designed to reduce the subject's cognitive resources that are available for deliberation on a choice. In our experiment, subjects are placed under a high cognitive...

This paper provides a comprehensive analysis of the relative performance of inflation targeting, price level targeting, and hybrid targeting of them in a simple three-period steady state to steady state economy facing transmission lag, and derives optimal policies implementing commitment...

Using a large information approach and full Bayesian VAR techniques, we study the economic effects of fiscal policy shocks in the U.S. over the last five decades. We find that omitted variables can explain the well known sample instability of the estimates for the fiscal multiplier. We also find...

Strategies and solutions to meet the challenges of GHGs call for new methods and technologies. Potential options for the rice industry sector to contribute to the mitigation of, and adaptation to, climate change by increasing rice production in a physically sustainable manner are attracting...

In Romania, European Studies have been introduced relatively late compared with other European countries. Immediately after the fall of the Communism, Romanian Universities made efforts to introduce the European dimension in their curricula. The first specializations of European Studies date...

Saving represents one of the most predictable determinants of successful personal and economic development. People desire to save although they tend to postpone saving until they have higher-paying jobs or some stability in their lives. However, in developing countries, where opportunities for...