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In an inuential article Tornell and Lane (1999) considered an economy populatedby multiple powerful groups in which property rights in the formal sectorof production are not protected. They obtained conditions under which thegroups appropriate output from the formal sector in order to invest it...
Persistent link: https://www.econbiz.de/10009302590
The empirical relationship between trade protection and economic growth is surprisinglyfragile, as shown in a number of … between trade barriers and growth is contingent on measures ofcomparative advantage. The findings suggest that these …
Persistent link: https://www.econbiz.de/10009302530
variation across sectors intariff changes after the Colombian trade reform to assess whether the impact of marketfundamentals on … ofproductivity with and without the trade reform shows that improvements in market selectionfrom trade reform help to weed out the … least productive plants and increase averageproductivity. In addition, we find that trade liberalization increases …
Persistent link: https://www.econbiz.de/10009360629
The high trade costs inferred from gravity are rarely used in thewide class of trade models. Two related problems … explain this omis-sion of a key explanatory variable. First, national seller and buyer re-sponses to trade costs depend on … their incidence rather than on the fullcost. Second, the high dimensionality of bilateral trade costs requiresaggregation …
Persistent link: https://www.econbiz.de/10009302535
We revisit the debt overhang question. We first use non-parametric techniques to isolate a panel of countries on the downward sloping section of a debt Laffer curve. In particular, overhang countries are ones where a threshold level of debt is reached in sample, beyond which (initial) debt ends...
Persistent link: https://www.econbiz.de/10005858241
This paper constructs a two-country stochastic growth model in which neutraland investment-specic technology shocks are nonstationary but cointegrated acrosseconomies. It uses this model to interpret data showing that while real investmenthas grown faster than real consumption in the United...
Persistent link: https://www.econbiz.de/10009302547
This paper uses an overlapping generations model with international labor mobility and apolitically responsive fiscal policy to examine aging in developed and developing regions.Migrant workers change the political structure composed of young and elderly voters in bothlabor-receiving and...
Persistent link: https://www.econbiz.de/10009418919
In the recent decade, capital outows from emerging economies, in the form of a demandfor liquid assets, have played a key role in the context of global imbalances. In this paper,we model the demand for liquid assets by rms in a dynamic open-economy macroeconomicmodel. We nd that the implications...
Persistent link: https://www.econbiz.de/10009486821
The paper shows that in a stylized model with two countries, characterized bydifferent levels of nancial development, the following facts can be replicated: 1)persistent current account surpluses and 2) high TFP growth in China. Because ofliquidity shocks and credit constraints, investment by...
Persistent link: https://www.econbiz.de/10009486822
We construct and estimate a unified model combining three of the main sources of cross-country income disparities:[...]
Persistent link: https://www.econbiz.de/10009486844