We employ the total factor productivity (TFP) index in growth accounting as a proxy for productivity growth to compare patterns and sources of output growth for a group of proximate countries in Asia-Pacific Economic Cooperation region. The estimates indicate that output growth has benefited...

This paper attempts to analyse the interrelationships between government and military expenditure and economic growth in particular, and between security and development in general, in a new framework. It has three novel features. First, the impact of military spending (as well as any other...

Central banks, in executing monetary policy, while pursuing traditional objectives, such as the control of inflation, may try also to promote financial stability. In this paper, we explore a simple monetary policy game played between the central bank and the financial sector. The central bank...

This paper investigates the validity of the conventional wisdom that, unlike in developed countries, exchange rate pass-through (ERPT) should be ‘complete’ for developing economies. To test this hypothesis, we construct new variables as well as original data sets, which are not readily...

This paper analyzes problems of implementing noneconomic conditionality, such as military expenditure reduction, in the granting of foreign aid given the presence of asymmetric information. The authors present two conceptually separate principal-agent models to capture the stylized facts of...

Sales of arms are a significant component of international trade and raise a range of pressing policy issues. After a short review of the market, this paper provides a formal model of the trade which allows for competing, forward-looking suppliers whose welfare depends on both the economic...

We employ the total factor productivity (TFP) index in growth accounting as a proxy for productivity growth to compare patterns and sources of output growth for a group of proximate countries in Asia-Pacific Economic Cooperation region. The estimates indicate that output growth has benefited...

Income distribution policies have been one of the most important issues that policy makers in less developed countries (LDCs) have had to face over the last decade. There has been a great revival of interest about the different aspects of distributing the national income, even irrespective of...