This paper develops a monetary endogenous growth model of a financially repressed economy, characterized by an Unofficial Financial Market and productive public expenditure, and, in turn, analyzes the effects of financial liberalization on the rate of growth and inflation. Following the current...

The authors of the present paper apply a discrete choice model to determine specific characteristics that influence South African grain farmers’ preferences in hedging against uncertainties. This is the first empirical study conducted in the country regarding such preferences of producers for...

This paper analyzes whether a wealth of information contained in 126 monthly series used by large-scale Bayesian Vector Autoregressive (LBVAR) models, as well as Factor Augmented Vector Autoregressive (FAVAR) models, either Bayesian or classical, can prove to be more useful in forecasting real...

This paper develops large-scale Bayesian Vector Autoregressive (BVAR) models, based on 268 quarterly series, for forecasting annualized real house price growth rates for large-, medium- and small-middle-segment housing for the South African economy. Given the in-sample period of 1980:01 to...

In this paper, we use a general equilibrium overlapping generations monetary endogenous growth model of a small open economy, to analyze whether financial repression, measured via the "high" mandatory reserve-deposit requirements of financial intermediaries, is an optimal response of a...

This paper analyzes the ability of principal component regressions and Bayesian regression methods under Gaussian and double-exponential prior in forecasting the real house price of the United States (US), based on a monthly dataset of 112 macroeconomic variables. Using an in-sample period of...

Using a monetary pure-exchange overlapping generations model, where the probability of survival of the young agents depends upon share of government expenditure on health, education and infrastructure, we analyze the welfare-maximizing policy mix between explicit and implicit taxation. We show...

The paper tries to provide a comprehensive review of the literature on Financial Liberalization, spanning more than three decades, ever since the independent contributions of McKinnon and Shaw in 1973, on this topic. In this regard, the paper revisits and evaluates the propositions of the...

The negative relationship between growth and inflation is well-documented in the literature. However, recent evidences tend to indicate of a possible growth-inflation trade-off. This paper provides a theoretical explanation to the above mentioned empirical contradiction. To validate our point,...

In order to address practical questions in credit portfolio management it is necessary to link the cyclical or systematic components of firm credit risk with the firm’s own idiosyncratic credit risk as well as the systematic credit risk component of every other exposure in the portfolio. This...