In any emerging nation, efficient infrastructure holds the key to economic and social development. In the case of Indonesia, however, decades of under-investment and poor asset management have left the country with a significant infrastructure deficit. This paper explores the key problems facing...

This paper develops a small open economy (SOE) dynamic stochastic general equilibrium (DSGE) model that helps to explain business cycle synchronization between an emerging market and advanced economies. The model captures the specificities of both economies (e.g. primary commodity,...

This paper evaluates the welfare cost of business cycles and the effects of monetary policies in a DSGE model tailored to a small open emerging economy. The model generates rich business cycle fluctuations, features labor market idiosyncratic risks and accounts for imperfect financial and...