Even without the possibility that reassessment of the nation’s military posture might lead to declines in support for generation of new knowledge in the physical sciences and engineering, the growth of the service economy should suffice to occasion a fresh look at US technology policy. This paper reviews the reasons, with particular attention to services such as health care. It then sketches ne...

This paper constructs and examines a macroeconomic model which combines features from both real and political business cycle models. We augment a standard real business cycle tax model by allowing for varying levels of government partisanship and competence in order to replicate two important empirical regularities: First, that on average the economy expands early under Democratic Presidents an...

the public has grown rapidly—to the point that, compared with the total output of the economy, it is now higher than it has ever been except during the period around World War II. The recent increase in debt has been the result of three sets of factors: an imbalance between federal revenues and spending that predates the recession and the recent turmoil in financial markets, sharply lower reven...

0

Like many small countries, croatia faces the dual challenge of creating a sustainable economy in a globalized world and of providing its citizens with a secure future. this challenge is considerable and is not made easier by the fact that croatia declared independence only in 1991, and secured it only after a violent war ending in 1995. the country is now a candidate for membership of the Europ...

Although the US-China relationship has been strained by the latter’s economic and military rise over the last decade, China’s development can benefit the US in a variety of ways. This paper argues that the most important facet of the US recovery is the reindustrialization of a largely service-based economy. To accomplish that goal, this paper suggests that the United States end barriers to Chin...

This paper extends the current literature which questions the stability of the monetary transmission mechanism, by using a Dynamic Factor Model with timevarying parameters, which allows fast and efficient inference based on hundreds of explanatory variables. Different specifications are compared where the factor loadings, VAR coefficients and error covariances may change gradually in every peri...

Agriculture is the focus of much contention in free trade negotiations. The Japanese government is against liberalizing the rice trade on the grounds that it would threaten “national food security” in the events of such shocks as crop failure, war, and embargo. Trade liberalization is expected to make Japan more dependent upon food imports and to make the Japanese economy more susceptible to th...

We explore the dynamic behavior of information economies: very large open economies of automated information agents that will exist on the Internet. Such large interacting systems are likely to exhibit emergent phenomena not straightforward to anticipate. We model a simple information economy that revolves around economically-aware news-ltering brokers to whom consumers choose to subscribe. Our...

When the U.S. invaded Iraq in March 2003, many economists feared that the war would lead to a sharp decline in Iraqi oil production, a spike in oil prices, and a woeful economy that would follow the scripts of the oil shocks of 1973, 1978, and 1990. There was in fact a moderate decline in world oil production, and real oil prices increased from $20 in 2001:4 to $62 in 2006:3. But the ailments a...