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rate in a low-income country vulnerable to various economic shocks. The study uses Bangladesh data, and following Cover et … correlated. Strong evidence is found for the hypothesis that aggregate demand and supply shocks are interrelated in Bangladesh …-side policies may be required to supplement contractionary monetary policy in combating inflation in Bangladesh. …
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Two findings have been common in the literature on the impact of foreign aid on public sector fiscal behaviour in developing countries. The first is that aid ‘sticks’ to higher levels of recipient government expenditure, with aggregate expenditure often rising by more than the value of the...
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This paper contributes to the literature on global inequality in multidimensional well-being by examining inter-country disparities in the longevity, knowledge and standard of material living components of the well-known and widely-used Human Development Index for the years 1992-2004. It differs...
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Small Island Developing States (SIDS) are very different to other developing countries. Relative to GDP they have the highest levels of foreign trade and aid receipts of all developing countries. Remittances from abroad are a far more important source of income for SIDS, and some depend very...
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We analyze investment decisions when information is costly, with and without delegation to an agent. We use a rational-inattention model and compare it with a canonical signal-extraction model. We identify three "investment conditions". In "sour" conditions, no information is acquired and no...
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