Using cointegration analysis, the authors examine long-term interactions between fiscal variables and the consumption-output and leisure-labor ratios. The motivation is to test if fiscal trends are an independent source of stochastic trends underlying the long-run behavior of real economic...

This article provides new calculations of the welfare effects of fiscal changes when the publicly provided good is nonseparable in utility and production so that it affects economic agents' marginal decisions. The authors' results show that these nonseparabilities significantly alter the...

In this study, we use simulations from the Social Policy and Development Centre’s large-scale empirical model of Pakistan’s economy to quantify the economic losses resulting from the devastating earthquake that hit the country on October 8, 2005. We then use the model to trace the path that...

We examine the determinants of net private capital inflows to emerging market economies (EMEs) since 2002. Our main findings are: First, growth and interest rate differentials between EMEs and advanced economies and global risk appetite are statistically and economically important determinants...

This paper examines some key propositions of real business cycle theory using a small open-economy framework and a structural vector autoregressive methodology. Identification is achieved by long-run restrictions. The main results from the Canadian economy are that domestic supply shocks are...

The volatility of U.S. real GDP growth since 1984 has been markedlylowerthanoverthepreviousquartercentury.Weutilizefrequency-domain and VAR methods to distinguish among competing explanations for this reduction: improvements in monetary policy, better business practices, and a fortuitous...