This paper addresses the topic of cyclicality in fiscal policy. In particular, we show that the level of cyclicality varies across spending categories and across OECD countries. In line with leading theories of fiscal cyclicality, we show that countries with volatile output and dispersed...

The core database for IMAGE is the Irish Input-Output table from 1993, extended to a SAM (Social Accounting Matrix) to allow for the value added in the economy to accrue to one of the institutions in the economy. The model distinguishes 34 industries, the first eight of which relate to farm...

Forthcoming in H. Kierzkowski (ed.), From Europeanization of the Globe to the Globalization of Europe (Palgrave, 2002).

A fiscal policy rule in which taxation is a function of existing government debt (a "wealth-tax") is usually believed to be effective in providing stability. Using a dicrete-time version of Blanchard's overlapping generations model, extended to include money and an endogenous labour supply we...

This paper empirically investigates the relationship between public infrastructure and international capital flows. Out of a sample of thirty countries a cross-sectional econometric model is constructed to estimate the effects. Different components of infrastructure variables are tested in...

This paper develops an empirical model of bilateral exchange rate volatility. We conjecture that for developing economies, external financial liabilities have an important effect on desired bilateral exchange rate volatility, above and beyond the standard Optimal Currency Area (OCA) factors. By...

This paper examines the impact of the recent outbreak of foot-and-mouth disease on the Irish economy using IMAGE, a CGE model of the Irish economy. The direct impacts on the tourism sector, the agricultural sector and on government finances are identified and their overall consequences for the...

This paper reviews the roles of monetary and fiscal policies in macroeconmic stabilization. In particular, we take acount of interactions between the two policy instruments and ask whether the extent of macroeconomic and policy uncertainty has changed over time, especially with the advent of...