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Mackowiak, Bartosz Adam; Wiederholt, Mirko - C.E.P.R. Discussion Papers - 2011

accident? To address this question, we study a model in which agents make state-contingent plans - think about actions in … uncorrelated with the optimal action in normal times, and actions are strategic complements. We then compare the equilibrium … would be better off if agents thought more carefully about optimal actions in rare events. …

Persistent link: https://www.econbiz.de/10009351517

Natural resource wealth: the challenge of managing a windfall

van der Ploeg, Frederick; Venables, Anthony J - C.E.P.R. Discussion Papers - 2011

Many countries have failed to use natural resource wealth to promote growth and development. They have been damaged by volatility of revenues, have failed to save a sufficiently high proportion of their resource revenues and failed to make high return investments to support diversification of...

Persistent link: https://www.econbiz.de/10009385762

Inherited vs Self-Made Wealth: Theory & Evidence from a Rentier Society (Paris 1872-1937)

Piketty, Thomas; Postel-Vinay, Gilles; Rosenthal, Jean … - C.E.P.R. Discussion Papers - 2011

This paper divides the population into two groups: the "inheritors" or "rentiers" (whose wealth is smaller than the capitalized value of their inherited wealth, i.e. who consumed more than their labor income during their lifetime); and the "savers" or "self-made men" (whose wealth is larger than...

Persistent link: https://www.econbiz.de/10009643507

Supply-Side Policies and the Zero Lower Bound

Fernández-Villaverde, Jesús; Guerron-Quintana, Pablo A.; … - C.E.P.R. Discussion Papers - 2011

This paper examines how supply-side policies may play a role in fighting a low aggregate demand that traps an economy at the zero lower bound (ZLB) of nominal interest rates. Future increases in productivity or reductions in mark-ups triggered by supply-side policies generate a wealth effect...

Persistent link: https://www.econbiz.de/10009367422

Monetary-Fiscal Mix and Inflation Performance: Evidence from the US

Favero, Carlo A.; Monacelli, Tommaso - C.E.P.R. Discussion Papers - 2003

There has been a lot of interest recently in developing small-scale rule-based empirical macro models for the analysis of monetary policy. These models, based on the conventional view that inflation stabilization should be a concern of monetary policy only, have typically neglected the role of...

Persistent link: https://www.econbiz.de/10005662224

The Origins of State Capacity: Property Rights, Taxation, and Politics

Besley, Timothy J.; Persson, Torsten - C.E.P.R. Discussion Papers - 2007

Economists generally assume the existence of sufficient institutions to sustain a market economy and tax the citizens. However, this starting point cannot easily be taken for granted in many states, neither in history nor in the developing world of today. This paper develops a framework where...

Persistent link: https://www.econbiz.de/10005662311

Free Trade and Long-Run Growth

Ben-David, Dan; Loewy, Michael B - C.E.P.R. Discussion Papers - 1995

What is the impact of movement towards free trade on output? Can this impact permanently affect output levels, and more importantly, will it have an impact on steady-state growth rates? This paper provides empirical evidence showing how countries have exhibited substantial increases in their...

Persistent link: https://www.econbiz.de/10005666425

The Effectiveness of Structural Policy in the European Union: An Empirical Analysis for the EU-15 during the Period 1995-2001

Beugelsdijk, Maaike; Eijffinger, Sylvester C W - C.E.P.R. Discussion Papers - 2003

The main aim of Structural Policy is to decrease the regional disparities within the European Union. In 2004 it is expected that ten new member countries join the EU. It is expected that this enlargement will cause strong regional disparities within the Union. For this reason the distribution of...

Persistent link: https://www.econbiz.de/10005666865

Debt Stabilisation Bias and the Taylor Principle: Optimal Policy in a New Keynesian Model with Government Debt and Inflation Persistence

Stehn, Sven Jari; Vines, David - C.E.P.R. Discussion Papers - 2008

Leith and Wren-Lewis (2007) have shown that government debt is returned to its pre-shock level in a New Keynesian model under optimal discretionary policy. This has two important implications for monetary and fiscal policy. First, in a high-debt economy, it may be optimal for discretionary...

Persistent link: https://www.econbiz.de/10005666963

Democratization and Growth

Papaioannou, Elias; Siourounis, Gregorios - C.E.P.R. Discussion Papers - 2008

This paper challenges cross-sectional findings that democratic institutions have a negligible direct effect on economic growth. We employ a newly constructed data-set of permanent democratic transitions during the so-called Third Wave of Democratization and examine the within effect of...

Persistent link: https://www.econbiz.de/10005666992