This article estimates the relationship between the provision of public infrastructure and private output in sixteen sectors in Mexico. The sector-specific cost functions depend on wages, the cost of capital, and the nominal values of the stocks of three types of infrastructure: electricity,...

We construct a simple model that tests for repressed inflation by estimating a "true" rate of inflation that explains behavior of observed money demand. We estimate the model using quarterly data for Czechoslovakia and Poland. Although our results should be viewed as preliminary, given the...

We construct a dynamic model of the Australian economy that has a regional sub-section representing Western Australia. Within the West Australia sub-economy, there is a separate technology for the gold mining industry. We implement the model, and simulate a 2.5 percent tax on gold exports. The...

We analyze a variety of macroeconomic policy issues confronting Bangladesh. We develop an intertemporal general equilibrium model and simulate it using Bangladesh parameters. Our estimated model generates reasonably accurate replicas of historical reality. We impose a reduction in current...

This study develops a dynamic general equilibrium model in which optimizing agents evade taxes by operating in the underground economy. The cost to firms of evading taxes is that they find themselves subject to credit rationing from banks. Our model simulations show that in the absence of...

We construct a intertemporal general equilibrium model and use it to examine infrastructure effects on Mexican national income. We consider three types of infrastructure, electricity, transportation, and communications. We then estimate production functions for the 16 major sectors of the...

We give an empirical examination of the impact of fiscal and economic decentralization in China on the country's economic growth and inflation, using a vector autoregressive (VAR) model with latent variables. Our econometric investigation offers strong evidence that there is a connection between...

We construct an intertemporal general equilibrium model designed to examine an economy in transition from central planning to being market oriented. The model considers one sector facing an output price control in the transition period, while the other sector has free output pricing. Interest...

We develop a model for the analysis of macroeconomic management that are caused by failures in the private banking system. Our analysis is applied to Tanzania, a country that faces significant difficulties from a banking system that holds large quantities of non-performing assets. We have...