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Political Feasibility and Investment in Economic Transformations

Isard, Peter - 1993

The paper characterizes the feasibility of economic transformation as requiring the simultaneous attainment of macroeconomic stability, political support, and adequate private investment. Macroeconomic stability is defined as fiscal balance; political feasibility is related to the income gains and...

Persistent link: https://www.econbiz.de/10014396491

Contagion and Volatility with Imperfect Credit Markets

Aizenman, Joshua - 1997

banks borrow at a premium on world capital markets, and domestic producers (whose demand for credit results from working … capital needs) borrow at a premium from domestic banks. Higher volatility of producers’ productivity shocks increases both … domestic and foreign financial spreads and the producers’ cost of capital, resulting in lower employment and higher incidence …

Persistent link: https://www.econbiz.de/10014401716

Technological Change, Relative Wages, and Unemployment

Aizenman, Joshua - 1994

This paper examines the effect of skill-biased technological change on the structure of wages, the composition of employment and the level of unemployment in a two-sector economy with a heterogenous work force. Efficiency wage considerations and minimum wage legislation lead to labor market...

Persistent link: https://www.econbiz.de/10014397189

Macroeconomic Adjustment with Segmented Labor Markets

Aizenman, Joshua - 1994

This paper analyzes the macroeconomic effects of fiscal and labor market policies in developing countries. The basic framework considers a small open economy with a large informal production sector and a heterogeneous work force. The labor market is segmented as a result of efficiency...

Persistent link: https://www.econbiz.de/10014396485

A Theory of Optimum Currency Areas : Revisited

Flood, Robert P. - 1992

Starting with Friedman and Mundell the academic literature has conducted a high level debate concerning the design of cross-country monetary arrangements. That debate has become very complex and the data requirements necessary for appropriate application of the principles developed are far...

Persistent link: https://www.econbiz.de/10014398224

Trade Liberalization and Unemployment

Agénor, Pierre-Richard - 1995

This paper examines the effect of trade reform on wages and unemployment in a two-sector, three-good economy in which labor is imperfectly mobile across sectors. Wages in the export sector are set so as to minimize turnover costs. The analysis shows that a reduction in tariffs, coupled with an...

Persistent link: https://www.econbiz.de/10014398463

Exchange Rate Flexibility, Volatility and the Patterns of Domestic and Foreign Direct Investment

Aizenman, Joshua - 1992

This paper investigates the factors determining the impact of exchange rate regimes on the behavior of domestic investment and foreign direct investment (FDI). Producers may diversify internationally in order to increase the flexibility of production. We characterize the possible equilibria in a...

Persistent link: https://www.econbiz.de/10014398688

Resource Allocation During the Transition to a Market Economy : Policy Implications of Supply Bottlenecks and Adjustment Costs

Isard, Peter - 1993

The paper discusses the case against a laissez faire approach to resource allocation and develops a model of supply bottlenecks. It argues that: (1) once budget constraints are hardened and credit markets begin to function appropriately, externalities associated with production bottlenecks and...

Persistent link: https://www.econbiz.de/10014398709

International Reserves : Precautionary vs. Mercantilist Views, Theory, and Evidence

Aizenman, Joshua - 2005

by developing countries. Overall, empirical results support precautionary motives; in particular, a more liberal capital …

Persistent link: https://www.econbiz.de/10014402041