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Standard New Keynesian (NK) models feature an optimal inflation target well below two percent, limited welfare losses from business cycle fluctuations and long-term monetary neutrality. We develop a NK framework with labour market frictions, endogenous productivity and downward wage rigidity...
Persistent link: https://www.econbiz.de/10012605466
We build a two-country currency union DSGE model with endogenous growth to assess the role of cross-country differences in product and labor market regulations for long-term growth and for the adjustment to shocks. We show that with endogenous growth, there is no reason to expect real income...
Persistent link: https://www.econbiz.de/10012022074
This paper examines the macroeconomic interaction between informality and gender inequality in the labor market. A dynamic stochastic general equilibrium model is built to study the impact of gender-targeted policies on female labor force participation, female formal employment, gender wage gap,...
Persistent link: https://www.econbiz.de/10011436767
for two Heavily Indebted Poor Countries (HIPCs), Tanzania and Zambia. The simulation results suggest that education … structure of effective demand for labor. An important result of the simulation experiments is that a well-targeted pattern of … education expenditure can be effective for poverty alleviation …
Persistent link: https://www.econbiz.de/10014400106
Following the adoption by the international community of the Poverty Reduction Strategy Paper (PRSP) approach, which … poverty and social impact analysis (PSIA) of different policy reforms being considered by the low income countries. This paper … suggested framework could be utilized to investigate the poverty/income distributional implications of introducing a value …
Persistent link: https://www.econbiz.de/10014403819
The impact of higher petroleum prices on the aggregate price level, real growth, and income distribution is appraised within a multisector computable general equilibrium (CGE) model. A reduction in the government subsidy raises petroleum prices and production costs throughout the economy....
Persistent link: https://www.econbiz.de/10014403999
The econometric literature has been unable to establish a robust association between foreign aid and growth and poverty … countries. The model quantifies three sources of poverty: (i) lack of access to international capital, (ii) low schooling and … high fertility (a poverty trap), and (iii) antigrowth domestic fiscal policy. We analyze policies designed to address each …
Persistent link: https://www.econbiz.de/10014404233
This paper estimates the impact of public capital on economic growth for forty-eight OECD and non-OECD countries during 1960 - 2001. Using the production function and its extensions, it finds a positive - but concave - elasticity of output with respect to public capital, which is robust to...
Persistent link: https://www.econbiz.de/10014412197
This paper draws on existing empirical literature and an original theoretical model to argue that globalization and skill supply affect the extent to which technology adoption in developing countries favors skilled workers. Developing countries are experiencing technical change that is...
Persistent link: https://www.econbiz.de/10014395381
This paper studies the effects that the inability of individuals to borrow against future income has on economic growth. The model assumes that human capital, which is accumulated through education, is the only factor of production. It is shown that liquidity constraints reduce growth. Further,...
Persistent link: https://www.econbiz.de/10014395778