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We present and analyse an optimizing model which explains the counter-intuitive effects of fiscal policy in terms of expectations. If government spending follows an upward-trending stochastic process, which the public believes may fall sharply when it reaches specific `target points', then...
Persistent link: https://www.econbiz.de/10005662143
sustainability. We show that the dual democratic mechanism – rejection/support rewards (RSRs) for politicians and elections – can … achieve sustainability. RSRs stipulate that incumbents who are not re-elected, but obtain the majority support among young …
Persistent link: https://www.econbiz.de/10005662383
finances of its member states. Yet there is no clear definition of sustainability. The economist’s common use of the term …. In this study, we develop a concept of sustainability focusing on the controllability of public finances. In so doing, we … adopt the approach of the Maastricht Treaty, to assume sustainability as long as a country does not violate the double …
Persistent link: https://www.econbiz.de/10005667090
the sustainability of the current global imbalances. …
Persistent link: https://www.econbiz.de/10005791200
forward a notion of current account sustainability and compares the experience of three Latin American countries – Chile … sustainability indicators and discusses their usefulness in predicting external crises. …
Persistent link: https://www.econbiz.de/10005791270
This paper examines the consequences for the sustainability of fiscal policy of imposing restrictive ceilings on …
Persistent link: https://www.econbiz.de/10005791703
talk to the Potsdam Global Sustainability Symposium (which drafted the Potsdam Declaration presented to the 2007 UN Climate …
Persistent link: https://www.econbiz.de/10005123837
This paper considers a housing insurance market in which buildings have different damage probabilities. Insurers use imperfect tests to find out about buildings’ damage types. The insurance market is a natural monopoly. If more than one insurer is active, high risk house owners continue to...
Persistent link: https://www.econbiz.de/10005123854
When banks have an informational monopoly about their borrowers, the latter incentives can be thwarted by the fear that the return on their effort will be partly appropriated by their banks via high future interest rates. Banks can correct this incentive problem through a commitment to share...
Persistent link: https://www.econbiz.de/10005124286
We show that the when one takes into account the global equilibrium ramifications of an unwinding of the US current account deficit, currently running at more than 6% of GDP, the potential collapse of the dollar becomes considerably larger than our previous estimates (Obstfeld and Rogoff 2000a)...
Persistent link: https://www.econbiz.de/10005124302