The main objective of this paper is to contribute to the literature on employment-GDP elasticities by assessing the determinants of cross-country variations in employment elasticities, focusing particularly on the role of demographic and macroeconomic variables. Long-term employment– GDP elasticities are estimated using an unbalanced panel of 90 developing countries from 1991 to 2011 using a tw...

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this paper analyzes the effects ofexchange policies on iran,s foreign trade, by applying new econometric techniques. in assessing the impacts of depreciation of the national currency on macroeconomic variable, the real rather than nominal exchange rate has been determined to be more appropriate criterion to demonstrate the success or failure ofthe adopted policies. during the period under the s...

Adopting an asset-market view of international risk sharing, we identify various sources of macroeconomic risk faced by international investors using a structural Vector Autoregression model. We find that most of the risk of exogenous financial market shocks are shared by international investors through the existing asset markets. However, other macroeconomic risks such as those associated with...

Against the backdrop of the Greek three-act tragedy, we present a theoretical framework for studying Greece’s recent debt and currency crisis. The model is built on two essential blocks: first, erratic macroeconomic policymaking in Greece is described using a stochastic regimeswitching model; second, the euro area governments’ responses to uncertain macroeconomic policies in Greece are consider...

A macroeconometric simulation study is undertaken to evaluate the impact of commodity price stabilisation (CPS) schemes for the export tree crop industry in Papua New Guinea. The findings suggest that there is a negligible level of favourable macroeconomic impacts of CPS. Contrary to the expectation, CPS adversely affects the stability of monetary and external sectors (BOP). CPS policy has fail...

This paper develops a simple macroeconomic model that shows that combining capital market imperfections together with unequal access to investment opportunities across individuals can generate endogenous and permanent fluctuations in aggregate GDP, investment, and interest rates. Reducing inequality of access may be a necessary condition for macroeconomic stabilization. Moreover, countercyclica...

Most small island economies or ‘microstates’ have distinctly different characteristics from larger developing economies. They are more open and vulnerable to external and environmental shocks, resulting in high output volatility. Most of them also suffer from locational disadvantages. Although a few small island economies have succeeded in generating sustained rapid growth and reducing poverty,...

After the financial crises from 2008-2009, the design of macroprudential policies has arrived in the centre of the macroeconomic discussion. With respect to house price booms, recent research suggest the use of loan-to-value (LTV) policies as a stabilization tool. However, policymakers are rather reluctant and change LTV ratios only in the case of extreme events. This paper builds a Hong Kong s...

We study the investment and nancing policies of public U.S. rms. Large rms substitute between debtand equity nancing over the business cycle whereas small rms' nancing policy for debt and equity is pro-cyclical. This paper proposes a novel mechanism that explains these cyclical patterns in a quantitative heterogeneous rm industry model with endogenous rm dynamics. We nd that cross-sectional di ...