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This paper examines the use of autoregressive distributed lag (ARDL) models for the analysis of long-run relations when the underlying variables are I(1). It shows that after appropriate augmentation of the order of the ARDL model, the OLS estimators of the short-run parameters are p T-consistent with the as-ymptotically singular covariance matrix, and the(More)
It is well known that vertical integration can change an upstream produc-er's incentive to supply the integrated …rm's downstream rivals. However, it has not been noticed that vertical integration also changes these rivals' incentives to choose suppliers. This paper develops an equilibrium theory of vertical merger that incorporates strategic behaviors in(More)
Recent studies have suggested that firm-specific technological competence may be diversified and internationalised. We show that increases in competence increased corporate technological diversification until the early 1970s, and then again more recently. However, a new interrelationship has now emerged between the accumulation, diversification and(More)
We show the importance of a dynamic aggregation bias in accounting for the PPP puzzle. We prove that established time series and panel methods substantially exaggerate the persistence of real exchange rates because of heterogeneity in the dynamics of disaggregated relative prices. When heterogeneity is properly taken into account, estimates of the real(More)
In the decade following Latane and Darley's publication of the discovery that the presence of other people inhibits an individual from intervening in an emergency , numerous researchers have attempted to replicate this finding, extend its range of applicability, and determine what boundary conditions limit it. In the present article, we review both(More)
This paper provides a review of the literature on unit roots and cointegration in panels where the time dimension (T), and the cross section dimension (N) are relatively large. It distinguishes between the first generation tests developed on the assumption of the cross section independence, and the second generation tests that allow, in a variety of forms(More)
This paper examines the macroeconomic impact of the first round of quantitative easing (QE) by the Bank of England which started in March 2009. Although Bank Rate, the UK policy rate, was reduced to ½%, effectively its lower bound, the Bank's Monetary Policy Committee felt that additional measures were necessary to meet the inflation target in the medium(More)
Principals who exercise favouritism towards certain agents may harm those who are not so favoured. Other papers have produced evidence consistent with the presence of such favouritism but have been unable to consider methods for controlling it. We address this issue in the context of a natural experiment from English soccer, where one particular league(More)