How to provide for full employment and equitable distribution of incomes and wealth are the keenest issues of the U.S. society. The Democratic and the Republican Parties have elaborated opposing views on economic policy, though both parties are certain that the problems may be resolved through...

This paper develops a model of a small open economy integrated in a monetary union. The model incorporates the standard nominal and real frictions in the literature. The parameters of the model are calibrated to the Portuguese data and the effects of the standard monetary policy shock are studied.

More debt forgiveness directly benefits households but indirectly makes credit more expensive. How does aggregate risk affect this trade-off? In a calibrated general equilibrium life-cycle model, aggregate risk reduces the welfare benefit of making default very costly when the costs are borne by...

Financial intermediaries issue the majority of liquid securities, and nonfinancial firms have become net savers, holding intermediaries' debt as cash. This paper shows that intermediaries' liquidity creation stimulates growth -- firms hold their debt for unhedgeable investment needs -- but also...

We develop an empirical model allowing for the identification of four different resource mobilization climates describing the period between 1986 and 2002. Those climates are based on different constellations of gross capital formation and domestic savings rates: super investor (high savings,...

This paper examines the effect of economic policy uncertainty and its components on firm-level investment. It is found that economic policy uncertainty in interaction with firm-level uncertainty depresses firms’ investment decisions. When firms are in doubt about costs of doing business due to...

In recent years China has experienced two forms of extreme macroeconomic imbalance: an expenditure imbalance in the sense of very high investment and very low consumption, giving rise to rapid capital accumulation; and an imbalance between expenditure and production, producing external...

The entry of a new product increases consumer surplus through additional product di- versity but decreases firm profits. In markets where .rm entry intensi.es competition and reduces markups through strategic interactions, we expect entry to be excessively high. In a simple general equilibrium...

A szerző - a nyugati közgazdasági irodalomhoz hasonlóan - szorosan a holtteher- veszteség kategóriájával egybekapcsolva vizsgálja a gazdasági hatékonyságot, kitérve a többi hatékonysági tényezőre. Alaposan csak az adóztatás által okozott holtteher-veszteséget elemzi. E...

This paper studies optimal taxation in a general equilibrium macro model with endogenous entry. We compare the constant elasticity of substitution (CES) model to three alternative demand structures: oligopolistic competition in prices, oligopolistic competition in quantities, and translog...