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In this paper we show that the delegation of monetary policy to an independent and more conservative central banker is an optimal policy in an international context with monetary spillovers between countries, even in the absence of time inconsistency (credibility) issues. We also study the...
Persistent link: https://www.econbiz.de/10005114375
relative to the present is reduced. Hence, due to a rise in terror activity, investment goes down, and in the long run income …
Persistent link: https://www.econbiz.de/10005504271
and investment, so it may take some time before an unemployed worker finds a job. Wages are determined by bargaining. A … subsidize entrepreneurial investment (there is a wage bargaining distortion and a search externality), simulations show that the …
Persistent link: https://www.econbiz.de/10005504418
fertility, and lower investment in physical and human capital. Furthermore, the feedback effect from economic prosperity to …
Persistent link: https://www.econbiz.de/10005504520
and investment. When the share of output that accrues to the owners of natural resources rises, the demand for capital … allocation of capital may, however, enhance the quantity as well as the quality of new investment and sustain growth. Empirical … thereby inhibiting economic growth. The results also suggest that abundant natural resources may hurt saving and investment …
Persistent link: https://www.econbiz.de/10005504629
This paper provides a theoretical and empirical analysis of the role played by domestic political incentives in the accumulation of large external debts by developing countries between 1972 and 1981. The theoretical model characterizes two equilibrium regimes. In one the borrower is on its...
Persistent link: https://www.econbiz.de/10005504639
Using firm-level data, we provide evidence that, although monetary policy affects real investment, the effect operates …
Persistent link: https://www.econbiz.de/10005504673
-industrial sector. The interaction of investment with unemployment creates a channel for potentially divergent long-run outcomes. If the …
Persistent link: https://www.econbiz.de/10005504722
(and trade-off between) investment and wages in Slovenian firms. We find that investment behaviour is more consistent with … display a trade-off between investment and wages, and workers share in firms’ surplus and appropriate funds that are supposed … to be used for depreciation investment. Most findings are consistent with the principal theoretical models of …
Persistent link: https://www.econbiz.de/10005497775
This paper analyzes a model of capacity choice followed by price competition under demand uncertainty. Under various assumptions regarding the nature and timing of demand realizations, we obtain general predictions concerning the role of demand uncertainty on equilibrium outcomes. We show that...
Persistent link: https://www.econbiz.de/10005497783