This paper incorporates asymmetric inter-regional transportation costs into the two-region endogenous growth model in Martin and Ottaviano (1999) to investigate the growth effects of an increase in the cost of transporting goods from the Sough (North) to the North (South). We show that with...

This paper studies how introducing habit formation to the two-sector small open economy model of Obstfeld and Rogoff (1995) and Lane (1997) affects the impact of a monetary surprise on welfare. In this model with endogenous habit formation, we examine agents' responses to a monetary expansion...

This paper analyzes the effect that an intergenerational redistribution policy has on effective demand by introducing the monetary stagnation model into an overlapping generations economy. We show that the redistribution from a younger generation to an older generation worsens effective demand...

This paper develops an efficiency wage model to highlight public policy for relieving unemployment. For the purposes of relief, we present unemployment benefits, public employment programs and wage subsidies. The results show that unemployment benefits have a negative effect on the employment...

This paper analyzes the effect that an intergenerational redistribution policy has on effective demand by introducing the monetary stagnation model into an overlapping generations economy. We show that the redistribution from a younger generation to an older generation worsens effective demand...

This paper develops an efficiency wage model to highlight public policy for relieving unemployment. For the purposes of relief, we present unemployment benefits, public employment programs and wage subsidies. The results show that unemployment benefits have a negative effect on the employment...