Showing 41 - 50 of 520
Persistent link: https://www.econbiz.de/10010819286
In this paper, we consider a finite-horizon model with the time-additive utility and the time varying discount rate. With the assumption of the concavity of absolute risk tolerance, the concavity of the consumption function has been proved. This result significantly broadens the conclusion of...
Persistent link: https://www.econbiz.de/10010819287
Theory suggests that a close match between revenue and expenditure assignments at sub-national levels benefits allocative efficiency, and hence economic growth. That is, a convergence of revenue and expenditure assignments at sub-national levels of government should, according to the theory, be...
Persistent link: https://www.econbiz.de/10010819288
Persistent link: https://www.econbiz.de/10010819289
This paper investigates the relationship between optimal monetary and tariff policy in open economies. In producer-currency pricing (PCP) case, as in Obstfeld and Rogoff (2002), optimal tariff policy rules are separable from optimal monetary policy rules. Except for PCP case, they are not...
Persistent link: https://www.econbiz.de/10010819290
In this paper, we study the effects of fiscal policies on economy in a stochastic model with hyperbolic discounting rate. With specific assumptions on the production technology, preferences, and stochastic shocks, we derive the explicit solutions to the growth rates of consumption and savings...
Persistent link: https://www.econbiz.de/10010819291
Persistent link: https://www.econbiz.de/10010819292
This paper examines optimal monetary policy rules in open economies with vertical production and trade in which we emphasize the role played by reference currency. As evidenced by empirical ï¬ndings, we assume ï¬nal goods prices are sticky, but intermediate goods prices are flexible. We...
Persistent link: https://www.econbiz.de/10010819293
Persistent link: https://www.econbiz.de/10010819294
The paper studies fiscal policy, monetary policy and the exchange-rate theory in a Viner-Zou monetary model of mercantilism. It is shown that, except for government consumption, permanent increases in the mercantilist sentiments, monetary growth rate, consumption tax, and foreign exchange...
Persistent link: https://www.econbiz.de/10010819295