This is the supplemental material to the paper titled "Distinguishing Constraints on Financial Inclusion and Their Impact on GDP, TFP, and The Distribution of Income." It includes additional theoretical and quantitative results. It also includes illustration for the numerical algorithm for our...

Liquidity may be a serious challenge to growing nations especially in the absence of foreign aid or other necessary assistance like access to borrowing. This paper introduces the Invisible Reserves Theory which states that, “A country that is locked in a depression during the absence of...

Economic development disparities are caused mainly by unjustified biased policies and not in actual fact biased policies. Balanced policies are often recommended for balanced growth of all economic sectors. However, through sector linkages, and due to lack of funding in many developing nations,...

A general equilibrium model featuring multiple realistic sources of financial frictions is developed to study how different constraints interact in equilibrium. We highlight, distinguish, and evaluate their differential impacts and rich interactions. The economic impact of financial inclusion...

I perform an empirical analysis of the relationship between economics and politics in the countries in transition. I use regional results of national elections in the Czech Republic, Hungary, Poland and Slovakia to link variations in support for reforms with the economic effects of reforms...

The IMF uses its well-known "financial programming" model to derive monetary and fiscal programs to achieve desired macroeconomic targets in countries undergoing crises or receiving debt relief. Financial programming is based on monetary, balance of payments, and fiscal accounting identities....

Epstein-Zin preferences have attracted signi.cant attention within the macrofinance literature based on DSGE models as they allow to substantially increase risk aversion, and consequently generate non-trivial risk premia, without compromising the ability of standard models to achieve...

This paper provides the algebra and a panel diagram to attempt to examine the so-called inflation- unemployment (or Phillips curve, or aggregate supply) example, the most popular example in the literature when introducing the concept of "time inconsistency" or "dynamic inconsistency". The...

In this paper we present a method for using rational expectations in a linear-quadratic optimizationframework. Following the approach put forward by Sims, we solve the model through a QZdecomposition, which is generally easier to implement than the more widely used method of Blanchardand Kahn.

This chapter draws inferences from the recent literature on open-economy macroeconomics about policies to achieve sustainable economic growth with stable external account balances and low inflation in small developing economies