Focus on Economic Theory Keynes on the Nature of Economic Thinking: The Principle of Non-Neutrality of Choice and the Principle of Non-Neutrality of Money

In the last two decades there has been a flourishing of writings on the methodological approach of Keynes. Whereas broad interpretations of Keynes's work may have a role to play for future economics the main argument of this paper is to propose a return to the theoretical foundations of a truly Keynesian economics. In the main economic writings of Keynes it is possible to discern a body of beliefs, which is (a) consistent in its own terms and (b) susceptible of being used in the explanation of different realities. That body of beliefs is grounded on (1) the principle of non-neutrality of choice and (2) the principle of non-neutrality of money. Both principles were essential parts of the core of Keynes's A Treatise on Money (1930) and The General Theory (1936), and should be used as foundation for future development of Keynesian economics at the methodological as well as at the theoretical level.     

Bootstrap Co‐integration Rank Testing: The Effect of Bias‐Correcting Parameter Estimates

Bootstrap‐based methods for bias‐correcting the first‐stage parameter estimates used in some recently developed bootstrap implementations of co‐integration rank tests are investigated. The procedure constructs estimates of the bias in the original parameter estimates by using the average bias in the corresponding parameter estimates taken across a large number of auxiliary bootstrap replications. A number of possible implementations of this procedure are discussed and concrete recommendations made on the basis of finite sample performance evaluated by Monte Carlo simulation methods. The results show that bootstrap‐based bias‐correction methods can significantly improve the small sample performance of the bootstrap co‐integration rank tests.     

Quasivariational inequalities for dynamic competitive economic equilibrium problems in discrete time

Decisions in Economics and Finance - Equilibrium is a central concept in numerous disciplines including economics, management science, operations research, and engineering. We are concerned with an...     

The Asymmetric Impact of War: Resilience,Vulnerability and Implications for EU Policy

Intereconomics - In 2019, over 96% of EU27 oil needs, nearly 90% of natural gas and over 43% of solid fuels were met by net imports, with the largest share coming from Russia (35% of oil, 40% of...