A striking feature of the Irish economic resurgence since 1987 has been a major factor income shift away from labour towards capital. (The profit share has increased from 25.1 percent in 1987 to 34.8 percent in 1996.) In this paper, we examine the role of the national stratey of wage moderation...

We take an initial step in investigating the international diverisfication of Irish production risk. We find evidence that Ireland displays some properties associated with international risk sharing. These include: high cross stocks of foreign assets and liabilities; high international...

We show that the joint presence of moral hazard and repudiation risk generates an importnat interaction effect. In order to provide the proper incentives to borrowers, the optimal financial contract under moral hazard calls for all available resources to be paid to the lender in the event of a...

This paper examines the determination of long-run movements in nominal exchange rates across countries. We model the long-run movement in the nominal exchange rate as depending on (i) the long-run inflation differential; and (ii) the long-run change in the real exchange rate. We argue that the...