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The authors study the implications of fiscal policy behaviour for sovereign risk in a framework that determines a country's fiscal limit, the point at which, for economic or political reasons, taxes and spending can no longer adjust to stabilize debt. A real business cycle model maps the...
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>Hiring Labor</li> <li>General Equilibrium</li> <li>Welfare Economics</li> <li>Uncertainty</li> </ul> <br> <b …
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various issues on preferential trade agreements. The first essay examines welfare implications of forming preferential trade … an FTA with effective ROO can be welfare-improving to both members. Second, the formation of a PTA is more likely to … analyze differences in welfare implications between an FTA with ROO and a customs union (CU). It is shown that the maximum …
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