In this paper the modification of the real business cycles model in which risk aversion parameter of agents’ utility function follows bivariate markov chain is developed and estimated using simulated VAR. The model’s ability to replicate properties of US quarterly data is compared with that...

We analyze the evolving price °uctuations by using ultrametric distance of minimally spanning ¯nancial tree of stocks traded in Jakarta Stock Exchange 2000-2004. Ultrametricity is derived from transformation of correlation coe±cients into the distances among stocks. Our analysis evaluates the...

This paper challenges the institutional sclerosis view of the German crisis according to which rigid labour markets and generous welfare state institutions have driven Germany into its position as „Europe’s sick man“. In general, the view is not convincing, because the underlying...

The goal of this paper is to investigate and estimate long-run relationships among M1, prices, output and interest rates, with a view to determining if there is a stable relationship that can be interpreted as long-run money demand. The paper uses a maximum-likelihood multiple- equation...

The Asian financial crisis is doubly unfortunate, first of all because it has set income and wealth levels in these countries back some ten years. But, it is also unfortunate because Hy Minsky been alive to point out to policy makers that they were dealing with a debt deflation the worst...

Contrasting Strategies & Lessons From International Experiences Jörg Bibow* Abstract: This paper analyzes the issues of public finance sustainability and suitability of strategies aimed at fiscal consolidation. Contrasting growth-based versus thrift-based consolidation strategies, it is argued...

Cette etude examine l'hypothese du surendettement du secteur prive, selon laquelle les menages et les entreprises se trouvent en certaines circonstances surendettes et decident, pour cette raison, de reduire leurs dettes en diminuant leurs depenses. Nous tentons de determiner si cette hypothese...

Introducing one additional element due to possible misfortune to the return of each of two assets in the basic model of Samuelson (Rev.Econom.Statist.51 (1969)239)on optimum portfolio and consumption decisions,this paper resolves both the excess equity premium and the excess consumption...

We argue that the choice of exchange rate regime in the process of accession to the European Union and EMU can affect the growth rate of the economy in the medium term. Empirical analysis is employed. We discuss the effects of exchange rate choice, and of the timing of transition to EMU on the...

The recent reemergence of large U.S. government budget deficits has rekindled the debate as to whether deficits adversely impact real interest rates. The conventional “crowding out” hypothesis predicts that there would be such an adverse effect; the Ricardian “deficit neutrality”...