Similar Search Results

Rotten Parents and Disciplined Children: A Politico-Economic Theory of Public Expenditure and Debt

Song, Zheng Michael; Storesletten, Kjetil; Zilibotti, … - C.E.P.R. Discussion Papers - 2012

This paper proposes a dynamic politico-economic theory of fiscal policy in a world comprising a set of small open …

Persistent link: https://www.econbiz.de/10011083405

Nominal Contracts as Behaviour Towards Risk

Minford, Patrick; Nowell, Eric - C.E.P.R. Discussion Papers - 1997

We look for a theoretical justification of nominal wage contracts in household diversification of risk. We assume it is more costly for households than for firms to use financial markets for this purpose. In a calibrated general equilibrium model we find from stochastic simulation that where...

Persistent link: https://www.econbiz.de/10005789213

The Implications of Space for Competition

Scotchmer, Suzanne; Thisse, Jacques-François - C.E.P.R. Discussion Papers - 1992

Incorporating space in economic models has two important consequences. First, the hypothesis of perfect competition becomes untenable, and second, the distinction between private and public goods becomes blurred. We review arguments that lead to these conclusions and summarize recent work...

Persistent link: https://www.econbiz.de/10005791949

Inequality, Malnutrition and Unemployment

Dasgupta, Partha; Ray, Debraj - C.E.P.R. Discussion Papers - 1985

This essay presents a rigorous theory of involuntary unemployment in less developed countries based on the observation … that at low consumption levels a person's overall ability to work is impaired. The theory links the incidence of … of physical assets. The theory is a classical one and attention is deliberately concentrated on situations where there is …

Persistent link: https://www.econbiz.de/10005791972

Pareto-Improving Economic Reforms through Dual-Track Liberalization

Lau, Lawrence J; Qian, Yingyi; Roland, Gérard - C.E.P.R. Discussion Papers - 1997

Pareto-improving economic reforms that also simultaneously achieve efficiency can be implemented through a strategy of ‘dual-track’ liberalization. Its success requires the feasibility of the original plan and its continued enforcement by the state. The Chinese experience demonstrates that...

Persistent link: https://www.econbiz.de/10005792369

Globalization and Individual Gains from Trade

Behrens, Kristian; Murata, Yasusada - C.E.P.R. Discussion Papers - 2009

We analyze the impact of globalization on individual gains from trade in a general equilibrium model of monopolistic competition featuring product diversity, pro-competitive effects and income heterogeneity between and within countries. We show that, although trade reduces markups in both...

Persistent link: https://www.econbiz.de/10008528544

Local Labor Markets

Moretti, Enrico - C.E.P.R. Discussion Papers - 2010

I examine the causes and the consequences of differences in labor market outcomes across local labor markets within a country. The focus is on a long-run general equilibrium setting, where workers and firms are free to move across localities and local prices adjust to maintain the spatial...

Persistent link: https://www.econbiz.de/10008468706

The Exchange Rate and Purchasing Power Parity: Extending the Theory and Tests

Apte, Prakesh; Sercu, Piet; Uppal, Raman - C.E.P.R. Discussion Papers - 2002

This Paper analyses the exchange rate in a ‘no-arbitrage’ or ‘real business cycle’ equilibrium model and provides empirical evidence for this model vis-a-vis PPP. Our contribution is to show, based on a generalization of the equilibrium model of exchange rates, that (i) the test equation...

Persistent link: https://www.econbiz.de/10005114340

The Yield Spread as a Symmetric Predictor of Output and Inflation

Hardouvelis, Gikas A; Malliaropoulos, Dimitrios - C.E.P.R. Discussion Papers - 2004

We present evidence that the predictive ability of the yield spread for short-run inflation is related to its predictive ability for economic activity. In particular, an increase in the slope of the term structure predicts an increase in output growth and a decrease in inflation of equal...

Persistent link: https://www.econbiz.de/10005114401

The Effect of Introducing a Non-redundant Derivative on the Volatility of Stock-Market Returns

Bhamra, Harjoat Singh; Uppal, Raman - C.E.P.R. Discussion Papers - 2006

We study the effect of introducing a new security, such as a non-redundant derivative, on the volatility of stock-market returns. Our analysis uses a standard, continuous time, dynamic, general-equilibrium, full-information, frictionless, Lucas endowment economy where there are two classes of...

Persistent link: https://www.econbiz.de/10005114422