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Benigno, Gianluca; Fornaro, Luca - London School of Economics (LSE) - 2013

This paper presents a model of financial resource curse, i.e. episodes of abundant access to foreign capital coupled with weak productivity growth. We study a two-sector, tradable and non-tradable, small open economy. The tradable sector is the engine of growth, and productivity growth is...

Persistent link: https://www.econbiz.de/10010746513

Do workers' remittances reduce the probability of current account reversals?

Bugamelli, Matteo; Paterno, Francesco - London School of Economics (LSE) - 2006

occurs, though less neatly, for the positive relationship between an increasing stock of external debt (over GDP) and the …

Persistent link: https://www.econbiz.de/10010745682

Political credit cycles: the case of the Euro zone

Fernández-Villaverde, Jesús; Garicano, Luis; Santos, … - London School of Economics (LSE) - 2013

We study the mechanisms through which the adoption of the Euro delayed, rather than advanced, economic reforms in the … Euro zone periphery and led to the deterioration of important institutions in these countries. We show that the abandonment … process after the creation of the Euro. …

Persistent link: https://www.econbiz.de/10011126656

Speculation: futures and capitalism in India: opening statement

Bear, Laura; Birla, Ritu; Puri, Stine Simonsen - London School of Economics (LSE) - 2015

Persistent link: https://www.econbiz.de/10011274872

Capitalist divination: popularist-speculators and technologies of imagination on the Hooghly River

Bear, Laura - London School of Economics (LSE) - 2015

Economic theory and technocratic policy have long understood economic action to be a communicative activity. From Laplace and Adam Smith to current liberalisation fiscal policy in India designed to produce price signals and entrepreneurial behaviour this conceptualisation has been dominant....

Persistent link: https://www.econbiz.de/10011274873

Optimal external debt and default

Guimaraes, Bernardo - London School of Economics (LSE) - 2008

contracts. The model considers a small open economy with capital accumulation and without commitment to repay debt. Taking first … order approximations of Bellman equations, I derive analytical expressions for the equilibrium level of debt and the optimal … debt contract. In this environment, debt relief generated by reasonable fluctuations in productivity is an order of …

Persistent link: https://www.econbiz.de/10010744981

The impact of trade on aggregate productivity and welfare with heterogeneous firms and business cycle uncertainty

Thia, Jang Ping - London School of Economics (LSE) - 2008

This paper presents a model with monopolistic competition, productively heterogeneous firms, and business cycle aggregate shocks. With firm-specific productive heterogeneity, weaker firms quit when faced with a negative aggregate shock. Consequently, trade does not always increase firm-level...

Persistent link: https://www.econbiz.de/10010745558

Principal agent problems under loss aversion: an application to executive stock options

de Meza, David; Webb, David C. - London School of Economics (LSE) - 2004

Executive stock options reward success but do not penalise failure. In contrast, the standard principalagent model implies that pay is normally monotonically increasing in performance. This paper shows that, under loss aversion, the use of carrots but not sticks is a feature of an optimal...

Persistent link: https://www.econbiz.de/10010745716

On building the American and the European empires

Colomer, Josep M. - London School of Economics (LSE) - 2009

The processes of building the United States of America (USA) during the nineteenth century and the European Union (EU) since mid-twentieth century are among the major claims for the possibility of a vast, ‘imperial’-size political unit based on democratic principles. The crucial period for...

Persistent link: https://www.econbiz.de/10010745910

Incentive design under loss aversion

de Meza, David; Webb, David C. - London School of Economics (LSE) - 2006

Compensation schemes often reward success but do not penalize failure. Fixed salaries with stock options or bonuses have this feature. Yet the standard principal–agent model implies that pay is normally monotonically increasing in performance. This paper shows that, under loss aversion, there...

Persistent link: https://www.econbiz.de/10010746407