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The literature is full of studies of production functions with capital and labour aggregate indices, mainly for the economies or manufacturing industries of the USA and Canada. Traditional Cobb‐Douglas and CES specifications treated aggregate labour on the assumption that heterogeneous labour categories were highly substitutable. Berndt and Christensen proposed that a consistent aggregate of diverse labour exists if certain Allen‐Uzawa partial elasticities of substitution (AUES, denoted σij, i, j = factor inputs) are equal.

The synchronous failure of conventional policies to achieve “acceptable” levels of employment, growth and price stability has provoked scepticism and led researchers to build up a pantheon of countercyclical credit motives. In this article we focus on Greek employment level, a method to promote employment and an empirical investigation. More specifically, using Greek time‐series data we shall concentrate on employment subsidies whose aim is to endorse labour‐intensive technology in Greek production process

As tariffs on trade have been drastically reduced after lengthy negotiations, non‐tariff barriers to trade have assumed increasing relative importance. This article examines the “Buy‐American” policy of the US Defence Department which may be classified as a restrictionist procurement tactic. The term Buy‐American refers to the systematic preference for domestic products which is in effect a form of trade discrimination. More specifically, we are interested in calculating the social welfare costs caused by the Buy‐American discrimination of the Defence Department.

Arafat and Rabin's famous handshake opened a new stage in the Middle East peace talks. Recent delays in the process have centered more around economic than political issues. Two main controversies revolve around means for distributing aid funds and the development of viable financial networks in the Israeli Occupied Territories. These agenda are reviewed from the viewpoint of promoting U.S. trade interests in the region. Islamic banks, if they are granted licenses by the Israeli government, may provide an effective means for distributing funds, while at the same time promoting U.S.‐Arab mercantile trade.