We present the first necessary and sufficient conditions for the existence of a unique perfect-foresight solution, returning to a given steady-state, in an otherwise linear model with occasionally binding constraints. We derive further conditions on the existence of a solution in such models,...

Assuming inflation is a forward variable in Taylor (1999) model, this paper finds opposite policy rule recommandations with counter-cyclical policy rule parameters (Taylor principle: inflation rule larger than one and bounded upwards) in the case of optimal policy under commitment versus...

This paper investigates the relevance of the No-Ponzi game condition for public debt (i.e. the public debt growth rate has to be lower than the real interest rate, a necessary assumption for Ricardian equivalence) and of the transversality condition for the GDP growth rate (i.e. the GDP growth...

We construct the first algorithm for the perfect foresight solution of otherwise linear models with occasionally binding constraints, with fixed terminal conditions, that is guaranteed to return a solution in finite time, if one exists. We also provide a proof of the inescapability of the...

Developments in information technology are fundamentally changing many traditional business models. Progress in the IT area is bringing about one change in particular: it is reducing search costs and allowing buyers and sellers of products and services to find each other directly on web-based...

The banks are known as the backbones of any economy. The banks link the saving surplus units with deficit units thereby providing investment and capital formation opportunities to both the units. In the recent times of financial shrinkages and up & down, the banking sector has witnessed various...

We review the empirical evidence on the impact of microcredit on poverty in Bangladesh. Drawing on evidence from seven empirical studies with 306 estimates, we examine the impact of microcredit on three proxies of poverty – income, assets and consumption/expenditure. After addressing issues of...

The study analyses the welfare performance of banks’ lending services in the Ghanaian banking industry with emphasis on the role of market power and efficiency. We made use of pooled OLS regression with fixed effect model. For robustness, we adopted Prais–Winsten (1954) regression and...

The purpose of this study is to evaluate the performance of microfinance institutions in The MENA region over the period 2006-2009. Following Simar and Wilson (1998, 2000) we use a DEA-Bootstrapping methodology to drift appropriate measures of DEA efficiency scores. The estimated results show...

The study employs macrodata on 42 African countries to examine whether remittances and financial development (including the sub-components of access, depth and efficiency) contribute to the equalisation of incomes across the continent. Robust evidence from the dynamic GMM estimator shows that:...