We first document a large secular shift in the estimated response of the entire term structure of interest rates to inflation and output in the United States. The shift occurred in the early 1980s. We then derive an equation that links these responses to the coefficients of the central bank's monetary policy rule for the short-term interest rate. The equation reveals two countervailing forces t...

This paper studies the determinacy properties of monetary and fiscal policy rules in a small-scale New Keynesian model. We modify the standard model in two ways. First, we allow positive public debt in the steady state as in Leeper [Journal of Monetary Economics 27, 129–147 (1991)]. Second, we add rule-of-thumb consumers as in Bilbiie [Journal of Economic Theory 140, 162–196 (2008)]. Leeper stu...

Martin Carrier (Bielefeld University) Funding policies for science are usually directed at supporting technological innovations. The impact and success of such policies depend crucially on how science and technology are connected to each other. I propose an “interactive view” of the relationship between basic science and technology development which comprises the following four claims: First, t...

A major challenge for the multilateral trading system is to secure the benefits of trade liberalization without infringing on the freedom of governments to pursue legitimate domestic objectives. The difficulty lies in distinguishing between two types of situations. In one, a non-protectionist government cannot prevent certain domestic policies from incidentally discriminating against foreign co...

Th e so-called ‘happiness hypothesis’, associated with the work of the economist Richard Layard, has attracted much public debate over recent years. Its main contention is that despite rising levels of material prosperity in the west, incidence of recorded happiness and greater quality of life has not increased accordingly. In considering the major contributory factors to happiness and well-bei...

OBJECTIVE To receive federal funds, colleges and universities are required to provide information to students about their alcohol policies as part of their alcohol-abuse prevention efforts. This study investigated whether and how the availability and completeness of alcohol-policy information on college Web sites changed between 2002 and 2007. METHOD The Web sites of the top 52 national unive...

Jaime Vargas for their thoughtful comments on an earlier version of this paper. The opinions expressed herein are those of the authors and do not necessarily reflect the official position of the Inter-American Development Bank. Foreword This paper is important because it seeks to enlighten a complex and often polemical debate about public and private education. It argues that the distinction be...

The global financial crisis of 2007–2008 had a negative impact on many countries, including Vietnam. Many policies have been applied to stabilize the macro-economic indicators. However, most of them are based on old qualitative models, which do not help policy makers understand deeply how each one affects the economy. In this paper, we investigate a quantitative macro-economic approach and use ...

"This paper, in a comparative analysis of the Philippines and Indonesia, examines first under what conditions can migration favorably contribute to the process of economic development and then to what extent can economic growth impact upon reducing emigration pressures in these labor surplus economies. The paper also argues that there is still considerable scope for putting in place [an] agreed...

In many scenarios, a fixed capacity is shared flexibly between multiple products. To manage such multi-product systems, firms need to make two sets of decisions. The first one requires setting an inventory target for each product and the second decision requires dynamically allocating the scarce capacity among the products. It is not known how to make these decisions optimally. In this paper, w...