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Alternative Estimation Methodologies for Macro Model: ECM vs. OLS

Buenafe, Sheila W.; Reyes, Celia M. - 2001

-stage estimation is used. The first stage determines the long-run relationship among the variables. The second stage illustrates the … estimation. The tracking performances of the two models were evaluated after the dynamic simulation over the period 1992 - 1998 … general, the results showed that the Error Correction Model method performs better than the OLS estimation method. In addition …

Persistent link: https://www.econbiz.de/10011429665

Regional Development in the Philippines: A Review of Experience, State of the Art and Agenda for Research and Action

Mercado, Ruben G. - 2002

Regional development policy and practice took significant transformations over the last five decades. Its relevance has been challenged in recent years by the new economic geography that emerged in view of globalization and as most nations veer towards a more democratic and decentralized...

Persistent link: https://www.econbiz.de/10011429679

The Determination of Contracts in Agricultural Economies

Lanzona, Leonardo - 2007

This paper aims to analyze how contracts are determined and modified given diverse agricultural settings and to examine the implications of these changes with respect to their efficiency, distribution, and sustainability. The contract model presented here differs from previous contract models as...

Persistent link: https://www.econbiz.de/10011429873

Benefit Incidence Analysis of Public Spending on Education in the Philippines: A Methodological Note

Cuenca, Janet S. - 2008

Benefit incidence analysis (BIA) is a tool used to assess how tax policy or government subsidy affects the distribution of welfare in the population. In other words, it evaluates the distribution of government subsidies among different groups in the population, in particular, among different...

Persistent link: https://www.econbiz.de/10011429883

Financial Liberalization and Volatility in Emerging Market Economies

Aghion, Philippe; Bacchetta, Philippe; Banerjee, Abhijit - 1998

The recent East Asian crisis has highlighted the relationship between financial development and output volatility. In this essay we develop a simple model of a small open economy producing a tradeable good using a non-tradeable input and where firms access to borrowings and investment depends on...

Persistent link: https://www.econbiz.de/10011430002

Does Exchange Rate Stability Increase Trade and Capital Flows?

Bacchetta, Philippe; van Wincoop, Eric - 1998

We develop a simple general equilibrium framework to study the effect of the exchange rate system on trade and welfare. An important feature of the model is deviations from purchasing power parity, caused by rigid price setting in buyers' currency. We find the following. First, exchange rate...

Persistent link: https://www.econbiz.de/10011430004

A Simple Model of Monetary Pollicy and Currency Crises

Aghion, Philippe; Bacchetta, Philippe; Banerjee, Abhijit - 1999

This paper analyzes the optimal interest rate policy in currency crises. Firms are credit constrained and have debt in domestic and foreign currency, a situation that may easily lead to a currency crisis. An interest rate increase has an ambiguous effect on firms since it both makes more...

Persistent link: https://www.econbiz.de/10011430009

Bankruptcy Priority for Bank Deposits: a Contract Theoretic Explanation

Birchler, Urs W. - 1999

Over the past decade several countries, including the US, have introduced or redesigned legislation that confers priority in bankruptcy upon all or some bank deposits. We argue that in the presence of contracting costs such rules can increase efficiency. We first show in a private information...

Persistent link: https://www.econbiz.de/10011430011

Financial Development and the Sensitivity of Stock Markets to External Influences

Dellas, Harris; Hess, Martin K. - 2000

We investigate how the relative contribution of external factors to stock price movements varies with the degree of financial development. We find that financial development makes stock markets more susceptible to external influences (both financial and macroeconomic). Interestingly, this effect...

Persistent link: https://www.econbiz.de/10011430016

Currency Crises and Monetary Policy in an Economy with Credit Constraints

Aghion, Philippe; Bacchetta, Philippe; Banerjee, Abhijit - 2000

This paper presents a simple model of currency crises which is driven by the interplay between the credit constraints of private domestic firms and the existence of nominal price rigidities. The possibility of multiple equilibria, including a "currency crisis" equilibrium with low output and a...

Persistent link: https://www.econbiz.de/10011430017