The illusion that is now commonly referred to as ‘White’s illusion’ involves changes in the lightness of the mid-grey test elements that replace sections of the black or white bars of a black–white square–wave grating. This paper describes the discovery of White’s illusion; an attempt to explain it in terms of assimilation theory; the interest it has generated amongst vision researchers; the su...

There has been a resurgence of interest, in many parts of the world, in problems of multi-level government finance. Recent and ongoing political and economic developments raise questions about the role of the nation, subnational governments, and supranational public authorities in the provision and financing of public-sector programs. This paper presents a selective survey of some of these deve...

Control on regional government budgets is important in a monetary union as lower tiers of government have fewer incentives to consolidate debt. According to the Fiscal Theory of the Price Level; unsustainable non-Ricardian fiscal policies eventually force monetary policy to adjust. Hence, uncoordinated and non-regulated regional fiscal policies would therefore threaten price stability for the m...

The monetary instrument problem is examined in an endowment economy model with various stochastic disturbances, with minimizing the variance of inflation as the policy objective. Following current developments in the theory of fiscal determination of the price level, for different monetary policies, active or passive fiscal policy is specified to guarantee a unique equilibrium. The responses of...

The fission illusion is induced by multisensory (audio-visual) integration. In the present study, we assume that perceptual efficiency affects the fission illusion's rate because this illusion occurs in a short temporal range through the integration of visual and auditory information. The present study examined the effect of perceptual efficiency on the fission illusion by presenting visual pat...

Empirical and experimental evidence documents that money illusion is persistent and widespread. This paper incorporates money illusion into two stochastic continuous-time monetary models of endogenous growth. Motivated by psychology, we model an agent’s money illusion behavior by assuming that he maximizes nonstandard utility derived from both nominal and real quantities. Money illusion affects...

The cyclopean illusion is the apparent lateral shift of stationary stimuli on a visual axis that occurs when vergence changes. This illusion is predictable from the rules of visual direction. There are three stimulus situations reported in the literature, however, in which the illusion does not occur. In the three experiments reported here we examine those stimulus situations. Experiment 1 show...

Fiscal policy restrictions are often criticized for limiting the ability of governments to react to business cycle fluctuations. Therefore, the adoption of quantitative restrictions is viewed as inevitably leading to increased macroeconomic volatility. In this paper we use data from 48 U.S. states to investigate how budget rules affect fiscal policy outcomes. Our key findings are that (1) stric...

We examine the impact of different degrees of fiscal feedback on debt in an economy with nominal rigidities where monetary policy is optimal. We look at the extent to which different degrees of fiscal feedback enhances or detracts from the ability of the monetary authorities to stabilise output and inflation. Using an objective function derived from utility, we find the optimal level of fiscal ...

Objective: Xenomelia, that is, the nonacceptance of one’s own limb, is an intriguing but little understood condition. We sought to further test the most prominent neuroscientific hypothesis that suggests xenomelia results from a breakdown in multisensory integration for the affected body part. Method: A ”rubber foot illusion” paradigm was developed and tested in healthy participants and in indi...