A small-scale open economy dynamic stochastic general equilibrium (DSGE) model is used to examine Philippine monetary policy. The model’s parameters are estimated using Bayesian methods. Posterior odds tests are conducted to compare models with different specifications of the policy rule....

This paper analyzes the phenomena of large volumes of college enrolment, educated unemployment and “job mismatch”. It reviews the structure of tertiary education in the Philippines, the investment behavior in schooling by individual households and the labor market in the Philippines. It...

This study examines Philippine macroeconomic fluctuations using Markov regime-switching techniques. Using all available GDP data, an annual and a quarterly model are constructed to explain Philippine boom-bust cycles as switches into any of three states─a moderate growth state, a low growth...

Given a linear economic model y* = ðx + b were y* is a prescribed goal vector, a linear programming problem can be used to determine the existence and uniqueness of a nonnegative instrument vector x that attains the goal and obtain such a vector if it exists. If the system y* = ðx + b does not...

On the 20th anniversary of “Ninoy” Aquino’s death, we revisit the alignment of forces and beliefs at EDSA ’86 and argue how the powerless state became the historic compromise struck among mutually distrusting and loathing partners. The 1987 Constitution, bearing the brunt of these...

A high degree of unemployment and underemployment characterizes the Philippine economic development record. In large part, the mainstream labor policies that emphasized high labor welfare standards and high minimum manages over the creation of employment are responsible for this outcome. In...

Friedman(1960-1963), using his and Anna Schwartz's study of monetary movements and the business cycles studied by the National Bureau of Economic Reseach (NBER) concluded that "monetary changes have their effect only after a considerable lag and over a long period and that the lag is rather...

The Philippine fiscal picture shows an economy that has not yet achieved sustainable long-term fiscal balance. It had taken major steps in this direction from 1990 to 1996. However, since the Asian Crisis, the picture has deteriorated. The tax ratio has declined, the fiscal balance has turned to...

This paper compares trends in key economic, political and social development outcomes in the Philippines with those of Latin America, particularly since the 1990s. To do so, it uses standard indicators of development, including measures of institutional quality and good governance. The paper...