Should the government run fiscal deficits in response to an adverse external shock that warrants transfer of resources from production of non-traded to traded goods? This paper considers normative fiscal policy implications of sectoral adjustment costs in a two-sector model with overlapping...

Should the government run fiscal deficits in response to an adverse external shock that warrants transfer of resuorces from production of non-traded to traded goods? This paper considers nprmative fiscal policy implications of sectoral adjustment costs in a two-sector model with overlapping...

This paper addresses whether children's exposure to parents receiving disability benefits induces a higher probability of receiving such benefits themselves. Most OECD countries experience an increasing proportion of the working-age population receiving permanent disability benefits. Using data...