This paper explores the effects of changes in tax regime and fiscal policy among selected economies of Central America and the Caribbean. The results show how agents respond to changes in tax regimes and the impact upon investment, consumption and output growth. The findings will assist in...

In this paper we provide new evidence of the transmission mechanism of monetary policy in Dominican Republic using a Structural Vector Autoregressive methodology where we incorporate carefully a set of constraints on contemporary relationships composed of domestic and external variables. Using...

Despite conventional macroeconomic theory is based on the idea that demand shocks can only have temporary effects on unemployment, several European economies display highly persistent unemployment dynamics. The theory of hysteresis challenges this view and pointsout that, under certain...