This paper presents a highly aggregated structural macroeconomic model of the U.K. economy. The specification is based on the insights provided by recent theoretical work on the working of open economies, and provides the most complete answer yet offered on the reverse causation controversy in monetary economics. The key empirical findings include relatively high interest rates and price elasticities in the relevant behavioral equations and a significant disequilibrium real balance effect on a broad expenditure aggregate. The results of simulation analysis of the model are reported and throw light on Britain's relatively poor postwar macroeconomic performance.

This paper presents a highly aggregated structural macroeconomic model of the U.K. economy. The specification is based on the insights provided by recent theoretical work on the working of open economies, and provides the most complete answer yet offered on the reverse causation controversy in monetary economics. The key empirical findings include relatively high interest rates and price elasticities in the relevant behavioral equations and a significant disequilibrium real balance effect on a broad expenditure aggregate. The results of simulation analysis of the model are reported and throw light on Britain's relatively poor postwar macroeconomic performance.

A. R. Pagan, D. F. Nicholls; Exact Maximum Likelihood Estimation of Regression Models with Finite Order Moving Average Errors, The Review of Economic Studies, V

G. O. Gaudet, J. D. May, D. G. McFetridge, Optimal Capital Accumulation: The Neoclassical Framework in a Canadian Context, The Review of Economics and Statistics, Vol. 58, No. 3 (Aug., 1976), pp. 269-273

Norman D. Aitken, Robert S. Obutelewicz, A Cross-sectional Study of EEC Trade with the Association of African Countries, The Review of Economics and Statistics, Vol. 58, No. 4 (Nov., 1976), pp. 425-433

Reviews the book "Financial Accounting and Reporting: A Contemporary Emphasis," by John Dearden and John Shank.

[A specialization of the Edgeworth type formulae due to Chambers [4] to approximate the marginal distribution of an econometric estimator is presented, and its application to improvement of the use of asymptotic limits in significance testing is discussed. Appendices discuss the validity of Nagar approximations to estimator moments, the exact distribution of the instrumental variable estimator, the Edgeworth approximations for 3SLS and FIML estimators, and the use of Monte Carlo procedures for assessing the appropriate probability to attach to a given significance test.]