We analyze the democratic politics and competitive economics of a ‘golden rule’ that separates capital and ordinary account budgets and allows a government to issue debt to finance only capital items. Many national governments followed this rule in the 18th and 19th centuries and most U.S. states do today. We study an economy with a growing population of overlapping generations of long-lived bu...

In this paper, we show that rational bubbles can exist within a neoclassical economy, provided households derive utility from holding wealth. Hence, provide microfoundation for relies on frictionless economy with an infinitely-lived representative household. While our bubbly equilibria are very similar to those obtained by Tirole (1985) in overlapping generation the underlying mechanism is fund...

Mendelsohn and Dinar review much of the important work on the implications of climate change for agriculture, focusing particularly on developing countries. Their message is that efficient economic adaptation significantly reduces the estimated effects of climate change. Few dispute that some amount of adaptation is likely and that its potential contribution to reducing the negative impacts of ...

Özellikle 1980’li yıllarda yaygınlaşan liberal politikalar sonrasında cari açık ile bütçe açığı arasındaki ilişki tartışma konusu olmuştur. Tartışma, ikiz hipotezini yani açığının açığa neden olduğunu savunan Keynesyen görüş değişkenler arasında herhangi bir olmadığını ileri süren Ricardian Denklik Yaklaşımı temeline dayanmaktadır. Çalışmada, 34 OECD ülkesi için hipotezi ampirik olarak test edi...

Abstract This paper studies how frictions in the acquisition of new customers distort allocation activities across heterogeneous producers. We add bilateral search a Ricardian model trade and use French firm-to-firm data to estimate faced by exporters foreign markets. Estimated coefficients display strong degree heterogeneity countries products that correlates with various proxies for informati...