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This paper diagnoses the symptoms of the Dutch disease in a two-sector stochastic endogenous growth model. A productive, low skill-intensive primary sector causes the currency to appreciate in real terms, thus hampering the development of a high skill-intensive secondary sector and thereby...
Persistent link: https://www.econbiz.de/10005662170
This paper introduces state-owned enterprises into an endogenous-growth model with an expanding variety of inputs. It shows that, if state firms are less efficient than private firms in organizing labour and also in adopting new technology, the rate of innovation and, hence, also the rate of...
Persistent link: https://www.econbiz.de/10005123742
Persistent link: https://www.econbiz.de/10005445189
Some channels through which increased inflation tends to reduce economic growth, and vice versa, are studied within a simple model incorporating money into an optimal growth framework with constant returns to capital. The model includes the potential impact of inflation on: (a) saving through...
Persistent link: https://www.econbiz.de/10005666711
In this paper we look at the costs and benefits for Iceland from joining the EMU from a labour-market perspective. We conclude that none of Mundell's three criteria for an optimal currency area are at present fulfilled for Iceland and the initial Euro zone. Shocks to the Icelandic economy are...
Persistent link: https://www.econbiz.de/10005523155
Persistent link: https://www.econbiz.de/10004998714
This paper presents a dynamic model that gives an account of some of the forms that the Dutch Disease can take through both product and labour markets. These involve an effect of primary sector output - through real wages and the level and volatility of real-exchange rates - on secondary sector...
Persistent link: https://www.econbiz.de/10005666613
Persistent link: https://www.econbiz.de/10005355904
Persistent link: https://www.econbiz.de/10005159107
Empirical evidence seems to indicate that economic growth since 1965 has varied inversely with natural resource abundance across countries. This Paper proposes a linkage between abundant natural resources and economic growth, through saving and investment. When the share of output that accrues...
Persistent link: https://www.econbiz.de/10005504629