This paper investigates the effects of a temporary change in government expenditures on private consumption and investment. The model employed is one of a closed economy populated by infinitely-lived, utility-maximizing individuals. The analysis focuses on the implications of alternative...

This paper employs a perfect-foresight model of intertemporal utility maximization in analysing the current-account effects of a temporary increase in government spending. The relationship between the marginal utility of private consumption and the supply of public goods in the economy plays a...

This paper analyses the real and monetary effects of an increase in the price of a traded intermediate input. The analysis mainly focuses on the effects of an increase in the price of the intermediate input on the the distribution of income, relative prices, production levels, the balance of...

This paper studies an economy where agents expect the floating-rate regime to be interrupted on a specific future date by a transitional fixed-rate policy. When the new peg is not revealed in advance, the path of the floating rate in anticipation of pegging is determined by the interaction...

The paper examines the interaction between a resource-exporting and a resource-importing country. The exporter chooses an optimal depletion rate and decides the allocation of the extracted resource between exports and domestic use. Optimal management from a national view entails inefficiency...

This paper studies the effects of a temporary import quota on the real exchange rate and the current account of a small-open economy populated by utility-maximizing individuals. The optimal current-account response is determined by the interactions between two opposing forces: the intertemporal...

In this paper, the effects of a transfer on the intertemporal terms of trade are examined in the context of a simple two-country, two-period model. When intertemporal trade occurs because the two economies have different rates of time preference, a transfer improves the terms of trade of the...

This paper investigates the effects of a temporary change in government expendit ure on private consumption and investment. The model employed is one of a closed economy populated by infinitely-lived, utility-maximizing individuals. The analysis focuses on the implications of alternative...