Existing studies either overlook the importance of the juridical enforcement of employment protection legislation in determining the labor market consequences of dismissal payments or else neglect the possibly judicial biases caused by a tight labor market due to the assumption of exogenous...

This paper sets up a monetary endogenous growth model, and uses it to explain the ambiguous linkage between the military burden and the inflation rate observed in existing empirical studies. It is found that an expansion in the military burden has an ambiguous effect on the inflation rate...

This paper develops an endogenous growth model to examine the linkage between military expenditures and economic growth. We adopt the modeling strategy where both the supply side and the demand side effects of national defense are taken into considerations. Our result finds that a rise in...

This paper incorporates the nature of terrorist threats into the Yarri (1965)-Blanchard (1985) model and uses it to discuss the transitional dynamics of consumption in response to an anticipated terrorist attack. It is shown that if the terrorist attack is pre-announced (and hence anticipated)...

This paper uses an open-economy quantity-theory model to show that a permanent increase in output leads to an increase in money income and international reserves in the long run and a decrease in consumption and overshooting of the terms of trade in the short run, if import demands are...

Using a general-equilibrium framework, this paper examines the price dynamics of a monetary shock for a small open economy with commodity spot and futures markets. The agricultural spot price can fall by exhibiting a mis-adjustment at the instant of the announcement of the increase in the money...