We use a two-sector neoclassical open economy model with traded and non-traded goods to investigate both the aggregate and the sectoral effects of temporary fiscal shocks. One central finding is that both sectoral capital intensities and labor supply elasticity matter in determining the response...

The paper provides a continuous-time version of the discrete-time Mitra-Wan model of optimal forest management, where trees are harvested to maximize the utility of timber flow over an infinite time horizon. The available trees and the other parameters of the problem vary continuously with...

This paper investigates the relative price and relative wage effects of a higher productivity in the traded sector compared with the non traded sector in a two-sector open economy model with imperfect substitutability in hours worked across sectors. The Balassa-Samuelson [1964] model predicts...

We use a neoclassical open economy model with traded and non traded goods to investigate the sectoral effects of three tax reforms: i) two revenue-neutral shifting the tax burden from labor to consumption taxes and ii) one labor tax restructuring keeping the marginal tax wedge constant....

A benchmark AK optimal growth model with maintenance expenditures and endogeneous utilization of capital is considered within an explicit vintage capital framework. Scrapping is endogenous, and the model allows for a clean distinction between age and usage dependent capital depreciation and...

Trigger values are derived for investment projects that are affected by uncertainty and construction periods. The importance of both aspects on the decision to invest is shown by simulation results and empirically corroborated by estimation results obtained with national (non-)residential...

This paper uses a unique micro-level data-set on Chinese firms to test for the existence of a "political-pecking order" in the allocation of credit. Our findings are threefold. Firstly, private Chinese firms are credit constrained while State-owned firms and foreign-owned firms in China are not;...

Dans le but d'analyser le cycle de productivité de l'emploi, cet article présente un modèle de cycles réels avec coûts d'ajustement croisés sur l'investissement et le travail. Le modèle est simulé et confronté aux faits stylisés du marché du travail. Nous évaluons plus...

In this paper, we intend to offer a critical review of the different concepts of capital and the different methods which are used to measure it. At the same time, we propose an endogenous approach which tries to measure the capital stock in terms of value, explicitly referring to depreciation as...

Acknowledging that changes in factor utilization rates explain variations in factor productive services flows, this paper investigates a dynamic general equilibrium model incorporating quasi-fixed inputs, weak complementarity between capital and labour, and displaying variations in the following...