This paper provides a simple dynamic optimization model of durable goods inventories. Closed-form solutions are derived in a general equilibrium environment with imperfect information and serially correlated shocks. The model is then applied to scrutinize some popular conjectures regarding the causes of the volatility reduction of GDP since 1984. JEL Classification: E22, E23, E32.

This paper presents a version of the proportionally calibrated almost ideal demand system (PCAIDS) model, useful for merger simulations, which can be econometrically estimated using price data for two firms in a market. The model is then applied to a database of the Argentine gasoline market, and its results are compared to the ones obtained with other alternative specifications. JEL Classifica...

This note provides a proof of Granger's (1986) error correction model for fractionally cointegrated variables and points out a necessary assumption that has not been noted before. Moreover, a simpler, alternative error correction model is proposed which can be employed to estimate fractionally cointegrated systems in three steps. JEL Classification Code: C32

The ‘rational addiction’ model of cigarette smoking downplays the influence of social factors and biological dependency. This paper develops a simple model of these factors and presents some causality tests that indicate that nicotine content ‘causes’ smoking with the direction being negative. ©2000 Elsevier Science B.V. All rights reserved. JEL classification: D12; J12

JEL CLASSIFICATION C26, C99, D03, I18. PSYCINFO CLASSIFICATION 2360; 3920.

This paper applies the hybrid dynamic general-equilibrium, vector autoregressive (DGE-VAR) model developed by Ireland (1999) to Canadian time series. It presents the first Canadian evidence that a hybrid DGE-VAR model may have better out-of-sample forecasting accuracy than a simple, structure-free VAR model. The evidence suggests that estimated DGE models have the potential to add good forecast...

Context. Among optical stellar interferometers, the CHARA Array located at Mt Wilson in California offers the potential of very long baselines (up to 330 m) and the prospect of coupling multiple beam combiners. This paper presents the principle and the measured performance of VEGA, Visible spEctroGraph and polArimeter installed in September 2007 at the coherent focus of the array. Aims. With 0....

in this study market orientation of iran commercial banks has been considered as an effective factor on banks' performance and the relationship between them has been surveyed. accordingly a conceptual model has been developed that shows both direct and indirect (through value creation) relationship. the developed conceptual model has been evaluated by bank and marketing experts in the fram...

Purpose – The purpose of this study is to analyze the role of infrastructure for and in ascertaining captivations of foreign direct investment (FDI). This work aims to investigate the effects of host country's infrastructure availability along with exchange rate and market size on inflows of FDI towards Pakistan. Design/methodology/approach – This study employs autoregressive distributed lag (A...