Recently, some have wondered whether a fiscal stimulus plan could reduce the government's budget deficit. Many also worry that fiscal austerity plans will only bring higher deficits. Issues of this kind involve endogenous changes in tax revenues that occur when output, real wages, and other...

Natural resource revenues provide a valuable source to finance public investment in developing countries, which frequently face borrowing constraints and tax revenue mobilization problems. This paper develops a dynamic stochastic small open economy model to analyze the macroeconomic effects of...

Typically, firms change their size through a row of discrete leaps over time. A very basic model allowing for discontinuous growth can be based on a couple of assumptions: (a) in the short run, the firm’s equipment and organization provide the maximum profit only for a given production level,...

In July – September 2012 the business climate index remained weak at score of 8, having improved from a score of -18 in the April-June quarter. This implies that the general business conditions have improved over the last quarter. Expectations for the next quarter (October-December 2012) are...

The purpose of this paper is to present a new index of legislative oversight. Building on the work by Stapenhurst (2011), who argued that a proper index of legislative oversight capacity should reflect not only legislatures’ internal oversight capacity but also the impact of contextual...

Although the negative economic effects of temporary employment are widely discussed, cross-country research on firms' demand for temporary employment is rare. National studies indicate that workload fluctuations are one major motive for firms to employ temporary workers. By studying a novel data...