A windfall of natural resources (or aid) faces government with choices of how to manage public debt, investment and the distribution of funds for consumption. The permanent income hypothesis suggests a sustained increase in consumption supported, once resources are depleted, by interest on...

If private goods are perfect substitutes for public goods and environmental quality, greener preferences reduce employment, raise abatement, and improve environmental quality. If the elasticity of substitution between private goods and leisure exceeds one, the tax rate increases, thereby...

The authors extend macroeconomic models of imperfect competition with Keynesian features to allow for nonunitary elasticities between leisure and consumption and the effect of product variety on multipliers and welfare. Provided preference for diversity is sufficiently strong, the real national...

The authors examine the effects of removing tariffs and trade barriers on the behavior of utilitarian trade unio ns using a two-country macroeconomic model. A "hump-shaped" relationshi p between wages and the degree of corporatism emerges here, analogousl y with closed-economy models. The...

This paper considers the effects of monetary and fiscal policies in an optimizing model with capital accumulation and a pos itive birth rate. An increase in monetary growth leads to a reduction in the real interest rate and a boost of capital and total consumpti on. However, the superneutrality...