This paper examines the mean-reverting property of real exchange rates. Earlier studies have generally not been able to reject the null hypothesis of a unit-root in real exchange rates, especially for the post-Bretton Woods floating period. The results imply that long-run purchasing power parity...

This article estimates the aggregate demand for private health insurance coverage in the United States using an error correction model for the period 1966-1999. Both short- and long-run price and income elasticities of demand are estimated. The empirical findings indicate that both private...

Some researchers, for example, Koop (1992), and Sims (1988), advocated for Bayesian alternatives to unit-root testing over the classical approach using the augmented Dickey-Fuller test (ADF). This paper studies the power of what Koop (1992) has called the "Objective" Bayesian approach to...

Some researchers, for example, Koop (1992), and Sims (1988), advocated for Bayesian alternatives to unit-root testing over the classical approach using the augmented Dickey-Fuller test (ADF). This paper studies what Koop (1992) called the 'Objective' Bayesian approach to unit-root testing. We...

We apply the efficient unit-roots tests of Elliott, Rothenberg, and Stock (1996), and Elliott (1998) to twenty-one real exchange rates using monthly data of the G-7 countries from the post-Bretton Woods floating exchange rate period. Our results indicate that, for eighteen out of the twenty-one...

Book Review of Regina Kaiser and Agustin Maravell, Measuring Business Cycles in Economic Time Series, Springer Verlag, 2000, pp. 190, $59.95 (Paperback), ISBN: 0387951121

We test for the short-run and long-run relationships between the Connecticut real gross state product and the U.S. real gross domestic product using quarterly data and a number of different statistical approaches. Quarterly observations on Connecticut real gross state product are not generally...