Download or read book Essays on Ricardian Equivalence written by Artidiatun Adji and published by . This book was released on 2006 with total page 345 pages. Available in PDF, EPUB and Kindle. Book excerpt: Due to low salaries in the formal sector, employees have been engaged in moonlighting activities, mostly in the form of self-employment (e.g., opening retail stores or services). This phenomenon may help to explain why private credit---which amounts to 29 percent of GDP---fails to explain consumption behavior. Most loans are made for investment rather than for consumption.
Download or read book Essays on Optimal Policy Design in Macroeconomics written by Vadym Lepetyuk and published by . This book was released on 2008 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Taking Money Seriously and Other Essays written by David E. W. Laidler and published by Cambridge, Mass. : MIT Press. This book was released on 1990 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt: Putting the matters back into money matters is David Laidler's intent in this collection of ten essays on the role of monetary institutions in the development of monetary theory and the implications of these ideas for policy. Together, the essays provide a coherent and accessible introduction to the power and range of thinking by one of the world's leading monetary economists. In Taking Money Seriously Laidler seeks to develop and sustain monetarist ideas of the 1960s in relationship to the new classical economics and to argue their continued policy relevance. Money matters, he points out, because monetary exchange rather than the Walrasian market coordinates economic activity in the real world. Laidler's discussion of the costs of inflation points up the importance of money's means-of-exchange role and is followed by an extended critique of new classical economics. He devotes several chapters to policy issues, in which he asserts that the monetary system is a public good whose organization and control present inherently political problems. David Laidler is Professor of Economics at the University of Western Ontario.
Download or read book Essays on the Government and Trade Deficits written by Seid Yimer Hassan and published by . This book was released on 1993 with total page 312 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays in International Finance and Macroeconomics written by Eric Mengus and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is made of four distinct chapters. In the first chapter, I investigate sovereign debt repayment incentives when countries can implement domestic transfers to mitigate internal costs of default. I show that, in the absence of reputation costs and international sanctions, sovereign repayment emerges as an equilibrium outcome if and only if individual domestic exposures to the domestic debt are not observable by the government. In the second chapter, I extend this mechanism to a two-country situation where one country's private sector is exposed to the second country's sovereign debt. I show that, in case of the second country's default, the optimal compensation can take the form of a purchase of the defaulting bonds. Ex ante, this leads to the existence of an implicit guarantee on sovereign debts. In the third chapter, I consider the connection between sovereign debt repayment incentives and domestic fiscal and redistributive policies. I establish that when the domestic economy is Ricardian, the government can perfectly compensate domestic agents and, thus, no internal cost of default emerges. Then I characterize deviations from Ricardian equivalence that are able to sustain external debt. In the fourth chapter, coauthored with Roberto Pancrazi, we investigate the impact of participation costs to insurance markets on households' ability to smooth consumption. We build a model where households face idiosyncratic risks against which they can purchase insurance, provided that they pay a fixed participation cost. We then confront our results to households' consumption data.
Download or read book IMF Staff papers written by International Monetary Fund. Research Dept. and published by International Monetary Fund. This book was released on 1988-01-01 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: A central proposition regarding effects of different mechanisms of fi-nancing public expenditures is that, under specific circumstances, it makes no difference to the level of aggregate demand if the government finances its outlays by debt or taxation. This so-called Ricardian equivalence states that, for a given expenditure path, substitution of debt for taxes does not affect private sector wealth and consumption. This paper provides a model illustrating the implications of Ricardian equivalence, surveys the litera-ture, considers effects of relaxing the basic assumptions, provides a frame-work to study implications of various extensions, and critically reviews recent empirical work on Ricardian equivalence.
Download or read book Essays in Monetary and Fiscal Policy written by Raffaele Rossi and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis is composed by four chapters on New Keynesian macroeconomics. Chapter 1 develops a small New Keynesian model augmented with a steady state level of public debt and a share of rule-of-thumb consumers (ROTC henceforth) as in Gal? etal. (2004; 2007). This chapter focuses on the consequences for the design of monetary and?scal rules, of the bifurcation on the demand side of the economy generated by the presence of ROTC, in the absence of Ricardian equivalence. When?scal policy follows a balanced budget rule, the share of ROTC determines whether an active and/or a passive monetary policy in the sense of Leeper (1991) guarantees determinacy. When a short run public debt asset is introduced, the amount of ROTC determines whether equilibrium determinacy requires a mix of active (passive) monetary policy and a passive (active) fiscal policy or a mix where both policies are active or passive. Chapter 2 studies the equilibrium determinacy of a New Keynesian model augmented with trend inflation, public debt and distortionary taxation. Both the level of long run inflation as well as the stock of steady state public debt have to be explicitly taken into consideration for the characterisation of the equilibrium dynamics between monetary and fiscal policy. Chapter 3 considers the implications of external habits for optimal monetary policy in an otherwise standard New Keynesian model, when those habits exist at the levelof individual goods as in Ravn et al. (2006). External habits generate an additional distortion in the economy, which implies that the flex-price equilibrium will no longer be efficient and that policy faces interesting new trade-offs and potential stabilisation biases. The endogenous mark-up behaviour, which emerges with deep habits, signi?cantly a?ects the optimal policy response to shocks and the stabilising properties of standard simplerules. Chapter 4 analyses both optimal monetary and?scal policy in a New Keynesian model augmented with deep habits and valuable government spending. We?find that, in line with the general consensus in the macro literature,?scal policy adds very little to optimal monetary policy as a stabilisation device.
Download or read book Three Essays on Intertemporal Fiscal Closure Rules and Fiscal Policies in Macroeconomic Models written by Long Zhang and published by . This book was released on 1996 with total page 368 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Efficiency and Coordination of Fiscal Policies in Interdependent Economies written by Irem Zeyneloglu and published by . This book was released on 2008 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: New open economy macroeconomics (NOEM) literature, initiated by Obstfeld-Rogoff (1995), offers a more rigourous setup for the analysis of macroeconomic policy with respect to Mundell-Fleming models. The perpective of deterministic general equilibrium NOEM models that emerged from Obstfeld-Rogoff (1995) has been extended by Obstfeld-Rogoff (2002) to a stochastic environment. The present dissertation aims to contribute to these two streams of research concerning fiscal policy analysis in the NOEM literature. The dissertation consists of a survey and four essays. The first two essays extend the deterministic setup Obstfeld-Rogoff (1995) by introducing imperfect financial integration and by relaxing the assumption of ricardian equivalence respectively. The third and fourth essays extend Obstfeld-Rogoff (2002) to analyze stabilization and cooperation gains from fiscal policy as well as the interactions between monetary and fiscal policy.
Download or read book Post Keynesian Essays from Down Under Volume II Essays on Policy and Applied Economics written by G. Harcourt and published by Springer. This book was released on 2017-03-21 with total page 444 pages. Available in PDF, EPUB and Kindle. Book excerpt: Joseph Halevi, G. C. Harcourt, Peter Kriesler and J. W. Nevile bring together a collection of their most influential papers on post-Keynesian thought. Their work stresses the importance of the underlying institutional framework, of the economy as a historical process and, therefore, of path determinacy. In addition, their essays suggest the ultimate goal of economics is as a tool to inform policy and make the world a better place, with better being defined by an overriding concern with social justice. Volume II assess application and policies.
Download or read book Three Essays on Monetary Macroeconomics An Empirical Examination of the Soundness Of the Alternative Monetary Model and Monetary Policy in Canada written by Reed Benjamin Collis and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This series of essays explores the soundness of the Alternative Monetary Model (AMM) of Smithin (2013, 2018) via an examination of the monetary policy and monetary transmission mechanism in Canada. The AMM has assumptions that are more consistent with the real world than other approaches to macroeconomics and monetary theory, and the reliability of the AMM through the business cycle will be examined. The model was tested using abduction and numerical methods. The results were also tested econometrically, and the predictions of the directional change of the variables were found to have an accuracy of 91%. Historical simulations were conducted to examine the ability of the AMM to mimic the time profiles of actual economic events. The simulations indicate that if the central bank were to have implemented a real interest rate rule during these historical periods, there would have been better economic outcomes. The monetary transmission mechanism between the Bank of Canada and commercial banks is examined. Evidence suggests this relationship has changed over the period of study and that monetary policy changes have affected commercial bank activities more swiftly since the 1980s. Additional evidence supporting the endogeneity of the money supply was found. Debt dynamics were examined, and certain convergence conditions for debt-to-GDP ratios were established. In almost all cases balanced budgets are not necessary to maintain a stable debt-to-GDP ratio. In much of the existing theoretical literature, it is assumed that interest rates are greater than the growth rate to maintain the assumptions of the transversality conditions, the no-Ponzi constraint, and Ricardian equivalence. However, it was found that in half of the periods studied, Canadas real interest rates were less than the real growth rate violating these assumptions. Monetary policy was found to have a significant effect on government interest rates, whereas fiscal policy was only found to have a marginal effect. This lends credence to the idea that monetary policy should play a critical supporting role in government debt sustainability, through a real interest rate rule, as this has a strong effect on both interest rates at commercial banks and bond yields throughout the economy.
Download or read book Savings and Bequests written by Toshiaki Tachibanaki and published by University of Michigan Press. This book was released on 1994 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt: How do bequests explain differences in savings behavior between countries?
Download or read book Essays in Economics written by James Tobin and published by MIT Press. This book was released on 1996 with total page 838 pages. Available in PDF, EPUB and Kindle. Book excerpt: This fourth volume in the series of Nobel laureate James Tobin's classic papers represents his work since 1980. This fourth volume in the series of Nobel laureate James Tobin's classic papers represents his work since 1980. Both national and international views are intermingled among the 36 chapters on macroeconomics and fiscal policy, savings, stabilization policy, international coordination of macroeconomic policy, monetary policy, and exchange rates. Several tributes to colleagues--including Walter Heller and Seymour Harris--round out the collection.
Download or read book Three Essays on Macroeconomy of Pakistan written by Ateeb Akhter Shah Syed and published by . This book was released on 2020 with total page 137 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of my dissertation is to investigate the macroeconomic impacts of federal government domestic debt, workers’ remittance inflows and the real exchange rate and real exchange rate uncertainty on Pakistan. The first essay examines the Ricardian equivalence hypothesis for Pakistan using a vector autoregressive (VAR) model. The sample period extends from June 2002 to September 2018. The results are reported using variance decompositions (VDCs) and impulse response functions (IRFs). The base model contains five variables and is estimated using 3 lags. As a robustness check, a six-variable model with 6 lags is also estimated. I find support for the idea that wealth does not increase as government debt increases. The results remain robust to a change in ordering of the variables and a change in VAR lag length. The second essay investigates the impact of workers' remittance inflows on the macroeconomy of Pakistan using VAR models. The analysis is performed using two separate datasets: a monthly dataset spanning the period 2003M7 to 2019M3 and a quarterly dataset covering 1980Q3 to 2012Q2. The results for models estimated using both datasets are reported using VDCs and IRFs. For both datasets, I find that there is no impact of workers' remittance inflows on selected variables from Pakistan for the sample period considered. This result remains robust to a change in the variables, alteration of ordering of the variables and a change in VAR lag length. The third essay examines the impact of shocks to the real exchange rate and real exchange rate uncertainty (volatility) on gross foreign direct investment (FDI) in Pakistan using a VAR model. The sample period extends from June 2002 to March 2019. The results are reported using variance decompositions and impulse response functions. The analysis is conducted using two separate measures of the real exchange rate: the US-Pakistan bilateral real exchange rate and the China-Pakistan bilateral real exchange rate. Each VAR contains the price level, real output, a measure of the bilateral real exchange rate, the volatility of the bilateral real exchange rate, the stock market general index of share prices, the long-term interest rate, and FDI. In general, I find that shocks to the real exchange rate and real exchange rate volatility do not have significant impacts on FDI. However, shocks to real output and FDI itself explain significant portions of the forecast error variance in FDI at all forecast horizons. The IRFs show that shocks to the real exchange rate and real exchange rate volatility do not impact FDI significantly at any forecast horizon. The results remain robust to the addition of the variable openness, alteration in the ordering of the variables, and a change in VAR lag length.
Download or read book Macroeconomics written by N. Gregory Mankiw and published by Macmillan. This book was released on 2003 with total page 600 pages. Available in PDF, EPUB and Kindle. Book excerpt: The fifth edition of the #1 bestselling intermediate macroeconomics text, with coverage based on the most recent data available, plus new student media resources.
Download or read book The Effectiveness of Fiscal Policy in Stimulating Economic Activity written by Richard Hemming and published by International Monetary Fund. This book was released on 2002-12 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multipliers are overwhelmingly positive but small. However, there is some evidence of negative fiscal multipliers.
Download or read book Essays on Saving Bequests Altruism and Life cycle Planning written by Laurence J. Kotlikoff and published by MIT Press. This book was released on 2001-06-22 with total page 596 pages. Available in PDF, EPUB and Kindle. Book excerpt: This collection of essays, coauthored with other distinguished economists, offers new perspectives on saving, intergenerational economic ties, retirement planning, and the distribution of wealth. The book links life-cycle microeconomic behavior to important macroeconomic outcomes, including the roughly 50 percent postwar decline in America's rate of saving and its increasing wealth inequality. The book traces these outcomes to the government's five-decade-long policy of transferring, in the form of annuities, ever larger sums from young savers to old spenders. The book presents new theoretical and empirical analyses of altruism that rule out the possibility that private intergenerational transfers have offset those by the government.While rational life-cycle behavior can explain broad economic outcomes, the book also shows that a significant minority of households fail to make coherent life-cycle saving and insurance decisions. These mistakes are compounded by reliance on conventional financial planning tools, which the book compares with Economic Security Planner (ESPlanner), a new life-cycle financial planning software program. The application of ESPlanner to U.S. data indicates that most Americans approaching retirement age are saving at much lower rates than they should be, given potential major cuts in Social Security benefits.
