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This paper introduces an internal propagation mechanism into a baseline multi-sector RBC model. The proposed mechanism, which is very similar to Keynes' spending multiplier in spirit, amplifies the impact of exogenous shocks significantly - a long-standing quest in the RBC literature. The main...
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This study re-examines the impact of corruption on international trade accounting for both inter- and intra …, we find that the negative impact of corruption on trade is reduced, ceteris paribus, in poorer countries. We also find … non-linearities, more corrupt countries present a more harmful impact of corruption on trade. Moreover, we perform a …
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