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In this paper, we estimate separate UK money demand functions for the household and corporate sectors; and calculate estimates of the welfare cost of inflation. We find that the household sector bears most of the welfare burden which is in sharp contrast to previous (US) evidence. Also, we find aggregate welfare cost estimates that are much smaller than previous (largely US) estimates—sufficiently smaller as to challenge the oft-quoted Lucas finding that shoe leather costs are by no means trivial. For the UK, we find welfare costs no greater than one tenth of a per cent of real income.

This paper empirically examines the contribution of structural reforms to reducing inflation using a panel data-set of 25 transition economies. Two econometric methodologies are applied. First, the Blundell and Bond (1998) estimator for panel data incorporating lags of the dependent variable. Second, a panel logit estimator is employed to consider the likelihood of achieving low inflation. Results highlight the importance of price and trade liberalization and the reform of credit allocation for reducing inflation, the latter being especially important for bringing inflation below 10%.

This paper examines the influence of trade liberalization on GDP growth during the transition from communism. The level of trade liberalization is found to raise the growth rate, particularly in the early part of the transition and for the countries nearest to the European Union. For the remaining countries and for the later transition period, the positive influence of trade reform on growth requires the negative effect of the interaction between trade reform and privatization to be taken into account. Even with the interaction terms the effect of trade liberalization is not statistically significant in the later transition period.

In this paper, we examine the consequences of sequencing on the progress of reforms in transition economies. The paper uses panel logit models to determine whether or not progress in some reforms enhances the prospects for other reforms. We find that progress on small-scale privatization is associated with advances in several other reforms, perhaps because small-scale privatization creates lobbies for reform. Our estimations suggest that a comprehensive program of small-scale privatization is needed to stimulate large-scale privatization, trade, and banking reform in a country that has undertaken little reform. Moreover, if restructuring is to occur banking reform is necessary. We also find that relaxing the fiscal constraint stimulates large-scale privatization, restructuring, and trade reform. Finally, we find that negotiations about EU accession negotiations advance the transition but only in banking reform and competition policy. Journal of Comparative Economics 33 (4) (2005) 835–850.

The relationship from inflation and the real exchange rate to the rate of depreciation of the exchange rate for Hungary is investigated over 1991m6–2002m2. Evidence is found that prior to the adoption of the pre-announced crawl in 1995 depreciation responded to inflation. After the adoption of the crawl inflation is dominated by a trend that indicates the rate of depreciation to be diminishing over time. This trend is interpreted as being deterministic, as a consequence of the gradual reductions in the rate of official devaluations. In both periods depreciation was found to respond to the real exchange rate in ways that limited real appreciations of the currency.

This paper combines Hendry’s general to specific procedure and Leamer’s Extreme Bounds analysis to assess the robustness of the relationship between growth in transition countries and a set of variables included in other studies. The results indicate a robust relationship between inflation and growth. A significant long–term effect of liberalization on growth is not found, which throws doubt on previous empirical studies of the relationship between liberalization and growth. However, the long–term benefits from liberalization may be indirect, via macro stability. Robustness tests also throw doubt on the effect of fiscal and exchange rate policies on growth. JEL classification: P24, P41, C23.

This article uses co-integration analysis to test purchasing power parity for the Romanian leu against the US dollar. The fact that the purchasing power parity (PPP) hypothesis is not rejected leads to the conclusion that the real appreciation of the leu against the dollar over the transition has not been due to an appreciation of the equilibrium real exchange rate. Rather it is simply the consequence of the leu being devalued beyond the equilibrium level at the start of reform and slowly returning to its constant equilibrium real rate. There is evidence that the adjustment to equilibrium has fallen almost entirely on the price level, so that a major consequence of the excessive undervaluation has been higher inflation.

We partition post-Soviet Union Transition Economies into two groups: European Union New Member States and countries belonging to the Commonwealth of Independent States or the South Eastern Europe area. Both groups started the 1980s with low levels of inequality, but in the early 2000s the latter group reached a level of inequality seven percentage points higher. We review various factors of inequality and examine whether these had differential effects in the two groups. Foreign Direct Investments and trade flows with the EU had a bigger inequality-enhancing effect in New Member States. We interpret this as evidence of technological catching-up and productivity improvements taking place in this region. Other specific reforms, such as privatisation and price liberalisation, had similarly strong effects in the two groups. We also find some evidence of an inequality-decreasing effect of an indicator of Voice and Accountability in countries outside the EU, and that countries with higher government effectiveness experienced lower levels of inequality. This supports the relevance of institutional capacity in tackling inequality. Finally, we speculate over the effects of the current global crisis on future economic performance. © 2010 Taylor & Francis.

We examine factors of within-country income inequality in transition economies of Central and Eastern Europe and the Commonwealth of Independent States after the breakup of the Soviet Union. Internal reforms dominate globalisation factors in accounting for inequality, with price liberalisation showing the strongest effect. Privatisation measures also show robust effects. We find some evidence that the extent of the private sector magnifies the impact of price liberalisation. The only role for globalisation seems to be to moderate the adverse impact of internal reforms on inequality. © 2009 Taylor & Francis.

The authors examine the importance of a disequilibrium real balance effect on non-durable consumers' expenditure in the U.K. Using cointegration techniques and the Johansen procedure they first establish a desired long-run demand function for liquid assets depending on income, wealth and a set of interest rates. Deviations of liquidity from this desired level cause changes in consumption via intertemporal substitution but via its effect on disequilibrium liquidity. Consumption is modeled in an error-correction framework and is also found to depend on income and financial wealth. Both the disequilibrium liquidity and wealth terms may be picking up the effects of financial liberalization (e.g. "mortgage leak") on consumption as funds released will be temporarily held in financial assets. They also find some evidence that changes in the distribution of income have an independent effect on aggregate consumption. Copyright 1991 by MIT Press.

The general-to-specific methodology and cointegration techniques are used to examine the demand for liquid assets by the UK personal sector. The demand for real liquid assets are found to depend positively on the level of transactions, the wealth to income ration and the own rate on liquid assets. In addition a higher rate of return on long-term securities or on bank lending reduces the level of liquid assets in the long run. Evidence in favour of cointegration between these variables is found and a dynamic error correction model with stable parameter estimates is found to hold over the 1970s and 1980s. The stable demand for this broad monetary aggregate however does not imply that it should form the basis for monetary targets since the equation is estimated from a regime that could be broadly characterised as one of interest rate setting. Copyright 1990 by Blackwell Publishers Ltd and The Victoria University of Manchester

It has been demonstrated that embryo transfer during IVF treatment can be performed competently and successfully by nurses (Barber et al., 1996). The present study has examined the success of nurses in training using the standardized protocol of this Unit. Initially, three nurses (two experienced (training completed) and one inexperienced (training ongoing)) each performed 80 transfers, which were standardized to three embryos replaced per transfer. The study aimed to establish whether a standardized procedure was undertaken by the nurses and to assess the influence of one inexperienced nurse performing the procedure. A further study (study 2) was performed to assess the influence of three inexperienced nurses against three experienced nurses undertaking the same procedures. In study 1, the pregnancy rates were 27.5%, 38.8% and 40.0% and there was no significant difference in the clinical pregnancy rates. In study 2, the pregnancy rates were 18.7%, 20.0% and 20.0% for the inexperienced nurses, and 26.3%, 30.0% and 32.5% for the experienced nurses. There was no significant difference in the clinical pregnancy rates within the inexperienced group or the experienced group. When the results of the three inexperienced nurses were grouped and were compared with those of the three experienced nurses, the pregnancy rates were 19.5% and 29.5%, respectively (P0.02). It has been shown that good clinical pregnancy rates can be achieved when nurses perform embryo transfer. There is no significant effect on clinical results when one nurse is in training; however, because of the expected learning curve, when three nurses train together a more significant effect is observed.

Computer-aided molecular modelling was once viewed as a rather specialised enterprise undertaken predominantly by protein crystallographers, but over the last ten years or so has become a key component in all research concerned with the relationships between molecular structure and function. The computing systems used not only provide the ideal means for storing, visualising and manipulating molecular structures, but also facilitate quantitative analyses and predictions of their properties and interactions. The following sections provide a general overview of the basic requirements and common methodologies involved in molecular modelling, including practical considerations and limitations of the various methods, together with specific illustrations of their utility as research tools. For further information the reader can consult Newman and Sproul for a comprehensive treatise on the principles and practice of interactive computer graphics [1]; Barrat & Mackay [2] for an account of some of the mathematics involved in molecular geometric measurements; and Clark [3] for detailed discussions of the methods employed in computational chemistry.