The Economic and Social Review, Vol. 24, No. 1, October, 1992
http://hdl.handle.net/2262/66520
2024-03-28T11:48:30ZTesting and estimation in unstable dynamic models: A case study
http://hdl.handle.net/2262/66538
Testing and estimation in unstable dynamic models: A case study
Harrison, M. J.; Bond, D.
This paper discusses testing for parameter instability and estimation of time-varying
parameters in the context of the Engle-Granger (1987) procedure. It reviews several developments in testing, in particular the new test by Bai, Lumsdaine and Stock (1991) for use in vector autoregression and error-correction models; it gives an account of the Kalman nIter estimation technique; and it examines a variety of methodological matters. To illustrate the methods and issues raised, an example concerning the estimation of regional exployment multipliers for Northern Ireland is presented. The paper concludes with some remarks and recommendations for applied work in economics.
1992-01-01T00:00:00ZCan we infer external effects from a study of the Irish indirect tax system?
http://hdl.handle.net/2262/64860
Can we infer external effects from a study of the Irish indirect tax system?
Madden, David
This paper estimates implied external effects for the Irish indirect tax system for the year 1987. The study uses the inverse optimum technique of Christiansen and Jansen (1978) which estimates implied external effects, given the assumption that the economy is at an optimum with regard to the indirect tax system. External effects are estimated for three goods: tobacco, alcohol and petrol and in all cases the estimated external effects are of the expected sign. The paper also estimates the implied degree of inequality aversion in the Irish indirect tax system and finds that the government's social welfare function as implied by the indirect tax system is virtually utilitarian.
1992-01-01T00:00:00ZTariff policy towards a monopolist in the presence of persuasive advertising
http://hdl.handle.net/2262/64849
Tariff policy towards a monopolist in the presence of persuasive advertising
Leahy, Dermot
This paper considers the positive and normative aspects of tariffs and advertising taxes in a situation in which a foreign monopolist chooses advertising as well as output. On the positive side it is shown that under certain circumstances a tariff will induce a fall in the domestic consumer price of the import. On the normative side the paper demonstrates that an import subsidy can be optimal under two different specifications of the welfare function.
1992-01-01T00:00:00ZEconomics and policy: beyond science and ideology
http://hdl.handle.net/2262/64847
Economics and policy: beyond science and ideology
O'Donnell, Rory
The dominant conception of the relationship between economists and policy makers is one which sees economists as scientists, whose knowledge is, ideally, derived independently of the interests which motivate politicians, civil servants and the public. This paper challenges the effectiveness, practicality and philosophical foundations of this outlook and proposes an alternative approach to policy-oriented economics. Developments in the philosophy of science have revealed serious problems in this positivist methodology and these undermine economists' conception of their rflle. An alternative approach is proposed ? based on a realistic view of how economists hold and change their beliefs and recognition that encounter and engagement with practical problems shapes the research which is undertaken. Although this case is, primarily, advocated with arguments concerning the effectiveness of economics in policy debates, philosophical support for the approach can be found in hermeneutic theory and the recent revival of a realist philosophy for the social sciences.
1992-01-01T00:00:00Z