Recent work on human capital accumulation has tended to abstract from population change. This is a reasonable simplification when analysing economies with relatively static populations, such as high income countries. However, many low income countries are undergoing rapid population change,...

Comparing simulation results obtained by applied general equilibrium (AGE) models using intra-industry trade specifications based on the theoretical models presented by Armington (1969), Krugman (1980), and Melitz (2003) may be important in evaluating trade-related economic policies today. The...

After impressive increase in participation and attainment in the 20th Century, a sense of disillusion has taken root in parts of Europe and N-America as to the effectiveness of formal education for social and economic advancement. For example, Goldin & Kats (2009) note that education attainment...

This paper explores the role played by product variety and quality in a real business cycle model.Firms are heterogeneous in terms of their specific quality as well as productivity level. Firms which have costly technology enter in the period of high aggregated demand and produce high quality...

A large portion of the Indonesian population is entering the middle-class as its economy is growing rapidly. Nielsen, a leading media research said that currently, middle class in Indonesia is the third-largest in the world. There are about 74 million middle classes in Indonesia, and this number...

The experience from the recent global financial crisis on 2008/2009 showed that most macroeconomic instabilities came from the financial/banking sector. The condition of the financial system may affect monetary stability, through excessive pro-cyclicality in the financial system. Agung et al...

The standard theory on optimal commodity taxation is incomplete in the sense that it ignores the fact that taxation -as a system- is attributed with administrative and other costs. The costs could be very large even for the theoretically optimum one. In addition, its application requires...

Two modern approaches to development policy have recently evolved and dispute with each other, the space-neutral and the place-based approaches Perhaps the most notable conceptual development common in these modern approaches is a strong awareness of the key role of geography in policies...

Climate change has become one of the most serious consequences of human activities. According to the IPCC Fourth assessment report, the emission of greenhouse gases (GHG) generated by human activities is the primary cause of the climate change and especially global warming. In general,...

We assess the effects on trade balance of a temporary fiscal devaluation enacted by Spain or Portugal by simulating EAGLE, a large-scale multi-country dynamic general equilibrium model of the euro area. Social contributions paid by firms are reduced by 1 percent of GDP for four years and are...