This study reexamines the growth effect of commodity taxation in a variety-expansion model. Integrating endogenous labor supply, a linear utility function for consumption, and an additively separable utility function for consumption and leisure, we derive results that contrast with those of...

This research reviews the effects of fiscal expenditures on economic output in a non-linear fashion for the Barbados economy. Using the Markov-Switching methodology, fiscal expenditure multipliers are estimated for each stage of the business cycle. The data indicates that a three-regime model is...

The study investigates the linear and nonlinear causal linkages between the tax-spend nexus in Nigeria for the periods 1961-1992, 1993-2012 and1961-2012. Employing a nonparametric causality test of Diks and Panchenko (2006) as well as the parametric causality test using the VAR model, results...

Using data from 59 economies for the period 1996-2011, we assess whether international reserves depreciate the exchange rate, as the mercantilist motive for accumulating international reserves holds. Our results suggest that international reserves tend to be associated with appreciations of the...

This paper elaborates on the relationship between sustainability of public debt and the debt to GDP ratio in case the interest rate on public debt exceeds the growth rate of GDP. When the primary surplus relative to GDP positively reacts to a higher debt to GDP ratio, a bounded debt to GDP ratio...

What is the optimal way to stabilize shocks and to take care of fiscal discipline in a fiscal union ? Among the various possible ways, this paper focuses on an inter-countries insurance scheme conditioned by the national preference for fiscal discipline of each government. We will show that the...

The paper addresses the question of the fiscal perspectives within the Economic and Monetary Union (EMU). By using a panel data analysis associated with an interpretation in terms of differences instead of levels, the results show a steady convergence of public deficits across the EMU, and that...

After experiencing high and persistent inflation for more than two decades, Turkey is entering a period of single-digit inflation again. Following a summary of the macroeconomic developments occurred since the early 1970s, this paper attempts to survey the empirical literature both on the...

WHAT IS ECONOMIC DEVELOPMENT ? Economic development means sustainable qualitative changes in the living conditions of general public in a country over a long period of time. Living condition means economic wellbeing not only in material sense but also in social sense. Conventionally per capita...

What is the optimal way to stabilize shocks and to take care of fiscal discipline in a fiscal union ? Among the various possible ways, this paper focuses on an inter-countries insurance scheme conditioned by the national preference for fiscal discipline of each government. We will show that the...