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Is the relationship between financial development and economic growth monotonic? : evidence from a sample of middle income countries

Samargandi, Nahla; Fidrmuc, Jan; Ghosh, Sugata - 2014

We revisit the relationship between financial development and economic growth in a panel of 52 middle income countries over the 1980-2008 period, using pooled mean group estimator in a dynamic heterogeneous panel setting. We show that financial development does not have a linear positive...

Persistent link: https://www.econbiz.de/10010340261

Revisiting the narrative approach of estimating tax multipliers

Hebous, Shafik; Zimmermann, Tom - 2014

A number of recent studies regress a "narratively" identified measure of a macroeconomic shock directly on an outcome variable. In this note, we argue that this approach can be viewed as the reduced-form regression of an instrumental variable approach in which the narrative time series is used...

Persistent link: https://www.econbiz.de/10010424792

Disorganization and financial collapse

Marin, Dalia; Schnitzer, Monika - 2000

Recently, Blanchard and Kremer (BK) argued that disorganization has led to the output decline in the former Soviet Union. In this paper we introduce liquidity and credit constraints into the BK model and show how these problems can alleviate the hold-up problem. We argue further that barter...

Persistent link: https://www.econbiz.de/10009781618

Who gains from better access to credit? : credit reform and reallocation of resources

Arnold, Jens Matthias; Flach, Lisandra - 2017

Brazil's 2005 bankruptcy law reform strengthened creditor protection, resulting in a substantial acceleration of credit expansion and business investment growth. In this paper, we go beyond average effects and examine to what extent the pro-creditor reform affected the allocation of resources...

Persistent link: https://www.econbiz.de/10011735891

Fiscal policy, monopolistic competition, and finite lives

Heijdra, Ben J. (contributor); … - 2006

multiplier; (ii) positive long-run output multipliers are obtained only if the generational turnover effect is dominated by the …

Persistent link: https://www.econbiz.de/10003301047

Food prices and the multiplier effect of export policy

Giordani, Paolo E.; Rocha, Nadia; Ruta, Michele - 2012

countries give rise to a "multiplier effect": when a shock in the international food market drives up (down) its price … 29 food products for the period 2008-10, finding evidence of a multiplier effect. Global restrictions in a product (i … to restrictive measures, suggesting that the multiplier effect is mostly driven by this group. Finally, we estimate that …

Persistent link: https://www.econbiz.de/10009522310

Monopolistic competition, efficiency wages and perverse effects of demand shock

Malley, James R.; Molana, Hassan - 2001

In this paper we construct a stylised general equilibrium macromodel to show that demand led expansions may have unexpected effects when market imperfections lead to changes in labour productivity. We find some empirical support, from a number of European countries, for the main predictions of...

Persistent link: https://www.econbiz.de/10011398788

Fiscal multipliers and the choice of zero lower bound modeling

Siemsen, Thomas; Watzka, Sebastian - 2013

multiplier. To this end we contrast two different ways to implement the ZLB in a New Keynesian model: the ZLB modeled as an … multiplier are not only due to differences in the timing assumption of government spending but also driven by the choice of the … ZLB modeling. Ceteris paribus, the impact multiplier is higher if the ZLB is modeled appropriately as a constraint. …

Persistent link: https://www.econbiz.de/10009772911

Using military build-ups to capture fiscal shocks : a reassessment

Yang, Weonho; Fidrmuc, Jan; Ghosh, Sugata - 2014

Ramey (2011a) and others argue that increases in government spending associated with wars and military build-ups constitute a good instrument for measuring the macroeconomic effects of fiscal shocks. We argue that this instrument has two important drawbacks: the composition of government...

Persistent link: https://www.econbiz.de/10010256126

Fiscal multipliers in a two-sector search and matching model

Angelopulos, Kōnstantinos; Jiang, Wei; Malley, James R. - 2015

This paper evaluates the effects of policy interventions on sectoral labour markets and the aggregate economy in a business cycle model with search and matching frictions. We extend the canonical model by including capital-skill complementarity in production, labour markets with skilled and...

Persistent link: https://www.econbiz.de/10010477900