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Credit constraints are more frequent among growth companies with large investment opportunities. For the same reason … investment opportunities to a larger extent. (ii) Taxes which are neutral in a neoclassical world, still restrict expansion … investment of constrained firms by reducing free cash-flow and thereby discourage innovation. (iii) A revenue neutral increase in …
Persistent link: https://www.econbiz.de/10010270231
The paper focuses on the recent pattern of government expenditure for developing countries and estimates the determinants which may have influenced government expenditure. Using a panel data set for 111 developing countries from 1984 to 2004, this study finds evidence that political and...
Persistent link: https://www.econbiz.de/10010301505
and portfolio investment inflows than others. Finally, when privatization of state owned banks and the adoption of a …
Persistent link: https://www.econbiz.de/10010305645
Within currency unions, according to the pre-crises consensus, countries can rely on fiscal policy to stabilize economic activity locally. Monetary policy's role, in turn, is to stabilize economic activity at the union level. Against this background, we reassess the optimal degree of fiscal...
Persistent link: https://www.econbiz.de/10011301422
Empirical data suggest that new rms tend to grow faster than incumbent firms in terms of their productivity. A sticky-price model with learning-by-doing in new firms fits this data and predicts that for plausible calibrations, the optimal long-run inflation rate is positive and between 0.5% and...
Persistent link: https://www.econbiz.de/10011301683
on the regional distribution of output of shocks to national macroeconomic variables such as GDP and investment. This is … instruments such as investment expenditure. It is likely that such national shocks will have differential regional impacts and so … provincial outputs of shocks to aggregate output and investment. We find great diversity of effects across the provinces with …
Persistent link: https://www.econbiz.de/10011400309
Empirical data suggest that new fi rms tend to grow faster than incumbent firms in terms of their productivity. A sticky-price model with learning-by-doing in new firms fi ts this data and predicts that for plausible calibrations, the optimal long-run inflation rate is positive and between 0.5%...
Persistent link: https://www.econbiz.de/10010329296
We use a microfounded dynamic stochastic general equilibrium (DSGE) model with banks to study interactions between monetary and macroprudential policies in a small open economy. The model is calibrated/estimated for Korea. Cooperation of monetary and macroprudential policies is optimal under a...
Persistent link: https://www.econbiz.de/10010329407
We use a dynamic game model of a two-country monetary union to study the impacts of an exogenous fall in aggregate demand, the resulting increase in public debt, and the consequences of a sovereign debt haircut for a member country or bloc of the union. In this union, the governments of...
Persistent link: https://www.econbiz.de/10010329410
We estimate the low-frequency relationship between fiscal deficits and inflation and pay special attention to its potential time variation by estimating a time-varying VAR model for U.S. data from 1900 to 2011. We find the strongest relationship neither in times of crisis nor in times of high...
Persistent link: https://www.econbiz.de/10010329511