Showing 1 - 10 of 48
How does technological progress in financial intermediation affect the economy? To address this questiona costly-state verification framework is embedded into a standard growth model. In particular, financialintermediaries can invest resources to monitor the returns earned by firms. The...
Persistent link: https://www.econbiz.de/10009360815
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
In order to understand inefficient institutions, one needs to understand what mightcause the breakdown of a political … powerand distribution where institutions (the \rules of the game") are set to maximize payoffsof those individuals in power …. Equilibrium institutions arethe fixed point of this constrained maximization problem. This model can be appliedto different …
Persistent link: https://www.econbiz.de/10008911501
The aim of the paper is to study the relation between the demand for human rights and foreconomic prosperity. It analyzes the demand not, as it is often done in the literature, from the“voice” perspective (political activity), but rather looks at the “exit” perspective...
Persistent link: https://www.econbiz.de/10009005032
We analyze the role of risk-sharing institutions in transitions to modern economies.Transitions requires individual …-level, idiosyncratic risk implies thatdistinct risk-sharing institutions – even those providing the same level of insurance – can leadto … model incorporating England’s andChina’s distinct pre-modern risk-sharing institutions. The model predicts a transition …
Persistent link: https://www.econbiz.de/10009360535
Persistent link: https://www.econbiz.de/10005866230
In this paper, I present a theory of dynamic economic growth, business cycles, and asset pricing that integrates (1) Marx's idea (and emphasized by Klein) of a two-class heterogeneity of the ownership structure of physical capital and human capital in a capitalist society, (2) Keynes' idea of...
Persistent link: https://www.econbiz.de/10005846603
This paper extends Galí and Gertler’s (1999) new hybrid KeynesianPhillips curve to the open economy context. We hypothesise that pricing decisionsdepend on both labour costs and intermediate imported input prices. The results forHong Kong are consistent with the theory if import prices are...
Persistent link: https://www.econbiz.de/10005858316
This paper extends and modifies the Keynesian critique of inflation targetingwith reference to stabilisation policy in emerging market economies. The IMF‘basic monetary programming framework’ for developing countries usesgovernment borrowing and the exchange rate as policy instruments in...
Persistent link: https://www.econbiz.de/10005870230
This paper explores implications of nominal rigidity characterized by a non-constanthazard function for aggregate dynamics. I derive the NKPC under an arbitrary hazardfunction and parameterize it with the Weibull duration model. The resulting Phillips curveinvolves lagged inflation and lagged...
Persistent link: https://www.econbiz.de/10008939774