This paper describes interactions between monetary and fiscal policies that affect equilibrium price levels and interest rates by critically surveying theories about (a) optimal anticipated inflation, (b) optimal unanticipated inflation, and (c) conditions that secure a "nominal anchor'' in the...

A financial constraint that prevents access to external funds induces non-classical measurement error in average q as a proxy for unobservable marginal q. Unlike classical measurement error, this measurement error biases upward the coefficient on average q in a univariate regression of...

Most of the time the budget constraints in the socialist economies were harder than in developing countries and no less hard than in developed countries. The soft budget constraints (SBC) in socialist economies were not pervasive, as most authors believe, but selective, i.e. involved...

We classify firms' financial constraints using a random forest model trained on the Hoberg and Maksimovic (2015) text-based constraint measures. Our model uses only financial variables to predict constraints, allowing us to significantly expand the cross- section and time-series of classified...

The paper examines Namibia's salient issues of public debt-dynamics and fiscal sustainability from 1980 to 2018. Time series data for the same study period was used. Of interest is the aspect of demystifying the dearth surrounding the trend of increasing public debt in Namibia when it is...

We study a matching model with salaries in which firms face budget constraints. Due to budget constraints, the existence of a stable matching is not guaranteed. We show that if workers are homogeneous, from the firms' point of view, then a weak stable matching always exists; furthermore, when a...

In this paper, we explore the effects of India’s federal structure on state-level fiscal responsibility. Drawing from a dataset that covers the period from 1991 to 2019, we argue that a low marginal retention rate, a high level of transfer dependence and a high level of borrowing dependence...

This paper examines whether revenue decentralization and direct external financial supervision affect the incidence and strength of political budget cycles, using a panel of Israeli municipalities during the period 1999-2009. We find that high dependence on central government transfers — as...