This paper examines possible ways for a developing country to finance budget deficits from domestic resources. It does so by analyzing Pakistan`s National Savings Scheme (NSS). The NSS has a number of unusual attributes, and its impact upon the economy of Pakistan is not clear, but given...

This work employs a dynamic general equilibrium model to evaluate the causes and implications of bank insolvencies. The model is applied to stylized data from several South Asian countries. It derives conclusions about policy instruments designed to alleviate the impact of insolvencies. Firms...

This paper develops a dynamic computable 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...

We analyse trade reform among the ASEAN countries, which recently began removing all mutual trade barriers. The standard method to avoid complete specialization in traded goods is to distinguish goods both by physical type and place of origin (the so called Armington assumption). This...

This paper develops a computational general equilibrium model for analyzing some chronic economic problems facing developing countries. We build a multiperiod model with multiple types of capital and three different financial assets. Moreover, capital is sector specific to capture the idea that...

Mexico has experimented with a number of tax instruments designed to promote private capital formation. Among such initiatives are general and industry specific tax credits, employment tax credits, and corporate tax reductions. This paper examines the relative efficacy of such instruments using...

This work employs a dynamic general equilibrium model to evaluate the causes and implications of bank insolvencies.We apply the model to stylized data from Bangladesh, a country whose banking system is currently suffering from large stocks of non-performing assets. The model is used to derive...

In a model where all banks are initially solvent, an exogenous shock affects confidence, causing a flight from deposits into domestic and foreign currency. Real interest rates increase unexpectedly, affecting firms and raising the share of the banks nonperforming assets. This contagion causes a...

This paper presents results from four simulations of the impact of potential tax reforms in Pakistan on poverty, shared prosperity, and inequality. The simulations are carried out in the context of a dynamic computational general equilibrium (CGE) model that incorporates endogenous tax evasion....

We construct a two-period general equilibrium model to evaluate policies affecting agricultural migration and exports. The model is applied to Mexico for the period 1986-1987 to obtain certain qualitative policy conclusions related to the 'Dutch disease' brought about by oil price increases....