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This paper constructs a two-period, perfect foresight general equilibrium model that analyzes crowding out. Private investment is debt financed, while government deficits are financed by money and debt. The existence of equilibrium is demonstrated and the model is applied to Australia for...
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This paper develops a methodology for evaluating the short-run welfare implications of different exchange rate regimes. Heterogeneous, optimizing domestic consumers live for two periods, consume goods and leisure, supply labor, save home and foreign bonds, and demand currency. Firms maximize...
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We construct a dynamic model of the Australian economy that has a regional sub-section representing Western Australia. Within the West Australia sub-economy, there is a separate technology for the gold mining industry. We implement the model, and simulate a 2.5 percent tax on gold exports. The...
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