Recent years have seen a protracted debate on the "fiscal theory of the price level". This doctrine is based on the intertemporal government budget constraint, which says that the real value of the government debt equals the discounted value of future government surpluses. It is observed that...

This paper examines the short run and long run effects of real exchange rate changes on the real trade balance of three ASEAN countries in their bilateral trade to the US and Japan within a cointegrating vector error correction model (VECM). Generalized impulse response funtions are estimated to...

The authors test Ricardian equivalence within an endogenous growth model for U.S. states, which have high rates of migration relative to most countries. Results are consistent with both Ricardian equivalence and endogenous growth, despite the relative ease of migration. Increases in productive...

The present work analyzes the discrete dynamic of the SELIC interest rates-target defined in the meetings of the Brazilian Monetary Policy Council (COPOM). The probit model methodology was applied in order to study the probability of Central Bank increase or decrease SELIC-target interest rate....

This paper explores the stability of the M2 money demand function in Nigeria in the Structural Adjustment Program (SAP) period. The results from the Johansen and Juselius cointegration test suggest that real discount rate, economic activity and real M2, are cointegrated. The Hansen (1992), CUSUM...

The paper undertakes a detailed characterization of the local dynamic properties of three simple deterministic models involving expectations. The expectations are formed under an adaptive learning process. Allowing for different degrees of learning quality, the analysis reveals the existence of...

The main purpose of this paper is to investigate the relationship between business cycle volatility and country size using quarterly data for a sample of OECD countries over 1960-2000. The results suggest very strongly that the relationship between country size and business cycle volatility is...

The aim of this study is to identify the factors which influence the dynamic of oil prices. Analysis by co-integration enables us to grasp the dynamic aspect of the analysis by making a distinction between a short-term and a long-term dynamic, between variables (both physical (real) and...

This paper investigates the role played by non-financial firms in Japanese corporate financing. We find that non-financial firms are an important source of credit for both small and large firms in Japan. We also document that adverse real and financial shocks have similar effects on small and...

In this note, we consider a multisector macroeconomic model under oligopolistic competition. We analyze the effect of an increase of the number of sectors on equilibrium price and on allocations, when the number of oligopolits of each type is constant. We also show that a tax policy has more...