Showing 1 - 10 of 268
The paper considers the response of a small, open dependent economy to a variety of fiscal and financial shocks. It also examines the influence of alternative budget-balancing rules on the response of the economy to external shocks, such as a change in the world interest rate. The approach...
Persistent link: https://www.econbiz.de/10005498001
This paper provides an explanation of the simultaneous occurrence in developing countries of a large accumulation of external debt, private capital outflows and relatively low domestic capital formation. We consider a general equilibrium model in which two types of government with conflicting...
Persistent link: https://www.econbiz.de/10005281409
This Paper delivers a precise recommendation for how presidential candidates should allocate their resources to maximize the probability of gaining a majority in the Electoral College. A two-candidate, probabilistic-voting model reveals that more resources should be devoted to states which are...
Persistent link: https://www.econbiz.de/10005792233
The current control system for public expenditure in the United Kingdom dates from the Plowden Report in 1961 and was developed for a public utilities model. This paper presents detailed evidence on changes in the composition of public expenditure. A new control system is proposed that is better...
Persistent link: https://www.econbiz.de/10005281370
Africa, while a major aid recipient, has had disappointing export performance. This paper argues for a causal link: aid, by being partially spent on non-traded goods, leads to real appreciation and reduced export competitiveness. I demonstrate the importance of this effect by presenting...
Persistent link: https://www.econbiz.de/10005661879
This paper uses a two-country overlapping generations model to study the international transmission of fiscal policy among open interdependent economies under free international capital mobility. With only lump-sum taxes and transfers, international transmission involves only pecuniary...
Persistent link: https://www.econbiz.de/10005504214
This paper considers the effects of monetary and fiscal policies in an optimizing model with capital accumulation and finite lives. An increase in monetary growth is no longer superneutral in a money-capital economy, but leads to a reduction in the real interest rate and increases in the capital...
Persistent link: https://www.econbiz.de/10005504290
This paper analyses the changes to the tax and social security systems that have occurred since Czechoslovakia's `velvet revolution' in 1989. It shows how the tax system is moving to meet the requirements of a market economy. It suggests that a particularly high priority has to be given to...
Persistent link: https://www.econbiz.de/10005504525
The paper investigates four challenges to exchange rate stability in the coming years and explores their implications for macroeconomic and exchange rate policy. The first section explores the importance of seigniorage in financing the government budget in Southern European countries. The second...
Persistent link: https://www.econbiz.de/10005504541
A new theory of price determination suggests that if primary surpluses are independent of the level of debt, the price level has to ‘jump’ to assure fiscal solvency. In this regime (which we call fiscal dominant), monetary policy has to work through seignorage to control the price level. If,...
Persistent link: https://www.econbiz.de/10005504577