We reformulate the baseline disequilibrium AS-AD model of Asada et al. (2004) to make it applicable for empirical estimation. The model now exhibits a Taylor interest rate rule in the place of an LM curve, a dynamic IS curve and dynamic employment adjustment. It is based on sticky wages and...

In this paper I investigate the sustainability of public debt in Latin- and South-American economies. To this purpose, a Panel VECM framework is proposed that accounts both for heterogeneities and homogenities of the debt dynamics in these countries, as well as takes account of the...