It is commonly believed that macroeconomic models are not useful for policy analysis because they do not take proper account of agents' expectations. Over the last decade, mainstream macroeconomic models in the UK and elsewhere have taken on board the Rational Expectations Revolution' by explicitly incorporating expectations of the future. In principle, one can perform the same technical exercises on a forward expectations model as on a conventional model -- and more
Rational Expectations in Macroeconomic Models deals with the numerical methods necessary to carry out policy...

T botogy and Vynam c a e u6uatty con6 de ed a 6epa ate 6ubject6. Acco d ngty, e6ea che 6 n th06e two 6 etd6 6etdom meet, de6p te, the 6act that the e 6 a con de a bie ove tap 06 nte e t namety when deat ng w th otat ng mach ne y cond t on mon to ng. Rotat ng mach ne a e u ed n atmo t eve y ndu t at appt cat on namety m t ta y, powe gene at on, chem cat, 600d p oce6 ng, etc. Any powe u e o gene at ng y tem 6 ba6ed on otat ng mach ne 6uch a tu b ne, 6an, pump6, comp e o, etc. mak ng the c ent 6ic e660 t in the 6 etd 06 otat ng mach ne y in ecent yea wett ju t 6 ed. Fa tu e 06 otat ng component,...

A quarter of the century has elapsed since I gave my first course in structural reliability to graduate students at the University of Waterloo in Canada. Since that time on I have given many courses and seminars to students, researchers, designers, and site engineers interested in reliability. I also participated in and was responsible for numerous projects where reliability solutions were required. During that period, the scope of structural reliability gradually enlarged to become a substantial part of the general reliability theory. First, it is apparent that bearing structures should not...

The effects of international trade and foreign direct investment (FDI) on developing economies have always been controversial. From about the 1980s, however, the countries adopting open policies have tended to o- perform those adopting closed policies. The former, essentially the eco- mies of Asia and some countries of Latin America, have grown faster than the latter, the economies of sub-Saharan Africa. With the unstoppable spread of globalization and the supremacy of open policies over closed ones, the debate between participating and not participating in the world economy has been...

The purpose of models is not to fit the data but to sharpen the questions. S. Karlin, 11th R. A. Fisher Memorial Lecture, Royal Society, 20 April 1983 We are proud to offer this volume in honour of the remarkable career of the Father of Spatial Econometrics, Professor Jean Paelinck, presently of the Tinbergen Institute, Rotterdam. Not one to model solely for the sake of modelling, the above quotation nicely captures Professor Paelinck's unceasing quest for the best question for which an answer is needed. His FLEUR model has sharpened many spatial economics and spatial econometrics questions ...

A non-technical introduction to the question of modeling with time-varying parameters, using the beta coefficient from Financial Economics as the main example. After a brief introduction to this coefficient for those not versed in finance, the book presents a number of rather well known tests for constant coefficients and then performs these tests on data from the Stockholm Exchange. The Kalman filter is then introduced and a simple example is used to demonstrate the power of the filter. The filter is then used to estimate the market model with time-varying betas. The book...

This book contains some of the results from the research project "Demand for Food in the Nordic Countries," which was initiated in 1988 by Professor Olof Bolin of the Agricultural University in Ultuna, Sweden and by Professor Karl Iohan Weckman, of the University of Helsinki, Finland. A pilot study was carried out by Bengt Assarsson, which in 1989 led to a successful application for a research grant from the NKJ (The Nordic Contact Body for Agricultural Research) through the national research councils for agricultural research in Denmark, Finland, Norway and Sweden. We are very grateful to...

The Boundary Integral Equation (BIE) method has occupied me to various degrees for the past twenty-two years. The attraction of BIE analysis has been its unique combination of mathematics and practical application. The EIE method is unforgiving in its requirement for mathe matical care and its requirement for diligence in creating effective numerical algorithms. The EIE method has the ability to provide critical inSight into the mathematics that underlie one of the most powerful and useful modeling approximations ever devised--elasticity. The method has even revealed important new insights...

The three decades which have followed the publication of Heinz Neudecker's seminal paper Some Theorems on Matrix Differentiation with Special Reference to Kronecker Products' in the Journal of the American Statistical Association (1969) have witnessed the growing influence of matrix analysis in many scientific disciplines. Amongst these are the disciplines to which Neudecker has contributed directly - namely econometrics, economics, psychometrics and multivariate analysis.
This book aims to illustrate how powerful the tools of matrix analysis have become as weapons in...

The modern system-wide approach to applied demand analysis emphasizes a unity between theory and applications. Its fIrm foundations in economic theory make it one of the most impressive areas of applied econometrics. This book presents a large number of applications of recent innovations in the area. The database used consist of about 18 annual observations for 10 commodities in 18 OECO countries (more than 3,100 data points). Such a large body of data should provide convincing evidence, one way or the other, about the validity of consumption theory. A PREVIEW OF THE BOOK The overall...