This paper analyzes certain policies that are typical of a number of rapidly growing East Asian countries in which a fixed exchange rate, combined with a surplus labor market, has made domestic assets relatively inexpensive, generating high rates of FDI as well as domestic capital formation....

In this paper, we study the impact of changes in the urban labor force and foreign direct investment on the banking sector, using a dynamic general equilibrium model with a financial sector. Numerical simulations are performed using stylized Chinese data, and bank failures are generated through...

Assessing fiscal sustainability – i.e. considering whether or not a country can maintain its current fiscal policies without running into solvency problems and possible default – requires projections on a government's future revenue stream, expenditures and contingent liabilities within a...

This paper first documents the increase in the time lag with which laborinput reacts to output fluctuations ("the labor adjustment lag") that is visi-ble in US data since the mid-1980s. We show that a lagged labor adjustmentresponse is optimal in a setting where there is uncertainty about the...

Technological progress, human capital, and tax policies play an important role in growth. Recent models of endogenous growth based on technological progress predict that high technological progress and growth are associated with a high relative supply of skilled workers who earn constant or...

Technical regulations are a form of non-tariff barrier that is becoming increasingly visible in agricultural trade disputes. A distinguishing feature of technical barriers is their legitimate use by governments to protect consumers' health, recognize citizen preferences in packaging and...