How d s u n c e r t a i n t y a b o u t f u t u r e r e n t t a x l i a b i l i t y a f f e c t t h e compe t i t i ve supply p a t t e r n f o r an e x h a u s t i b l e resource? H i s t o r i c a l l y , changes i n t a x and r e g u l a t o r y c l a u s e s h a v e b e e n a f r e q u e n t occurrence i n t h e Petroleum indus t ry , and appear t o h a v e c o n t r i b u t e d t o t h e c...

a r t i c l e i n f o JEL classification: F13 F42 F51 Keywords: Trade war out of fear Risk-dominant equilibrium Global game in trade policies Strategic complementarity Trade retaliation strategies This paper examines why the recent efforts to arrange free trade regimes have failed repeatedly focusing on the increased uncertainties in economic fundamentals and the asymmetric political economic c...

In this paper, we analyze how lack of credibility and transparency of monetary and fiscal policies undermines the effectiveness of macroeconomic policies to isolate the economy from commodity price fluctuations. We develop a general equilibrium model for a commodity exporting economy where macro policies are conducted through rules. We show that the responses of output, aggregate demand, and in...

Government spending multiplier is usually defined as a factor of proportionality that measures how much output changes in response to a change in the exogenous government spending shock. This assumption is inconsistent with the reality that fiscal stimulus are themselves endogenous and state dependent. This paper developed a endogenous regime switching framework in a rational expectation DSGE m...

We present a dynamic two-region model with overlapping generations. There are two types of productive public expenditure, education and infrastructure funding, and governments decide optimally on budget size (tax rate) and its allocation across the two outlays. Productivity of government infrastructure spending can differ across regions. This assumption follows well established empirical eviden...

Using an estimated DSGE model that features monetary and fiscal policy interactions and allows for equilibrium indeterminacy, we find that a passive monetary and passive fiscal policy regime prevailed in the pre-Volcker period while an active monetary and passive fiscal policy regime prevailed post-Volcker. Since both monetary and fiscal policies were passive pre-Volcker, there was equilibrium ...

t his paper investigates the asymmetric behavior of inflation. we use logistic smooth transition autoregressive (lstar) model to characterize the regime-switching behavior of iran’s monthly inflation during the period may 1990 to december 2013. we find that there is a triple relationship between the inflation level, its fluctuations and persistence. the findings imply that the behavior of infla...