This paper reexamines some unsettled theoretical and empirical issues regarding the relationship between nominal exchange rates and interest rate differentials and provides a model for the behavior of exchange rates in the long run, where interest rates are determined in the bond market. The...

Modern economic theories explain differences in productivity and economic growth across countries by differences in political and economic institutions, and differences in culture, geographical location, policies, and laws. The success of any of these theories in explaining the gap in...

This paper uses the Triples test of Randles et al (1980) to detect asymmetries in US as well as international GDP fluctuations. The test does not detect any asymmetry in the distribution of the US GDP, which is consistent with previous empirical findings. However, significant asymmetries are...

Modern economic theories explain differences in productivity and economic growth across countries by differences in political and economic institutions, and differences in culture, geographical location, policies, and laws. The success of any of these theories in explaining the gap in...

We extend the Glick and Rogoff (1995) aggregate time-series, empirical, intertemporal model of countryinvestment to a sectoral-level, and estimate it for New Zealand. We fit the model to panel data of eleven industries from 1988-2009. The sectoral-level investment growth is a function of lagged...