The secular decline in the equilibrium real interest rate observed over past decades has materially limited room for policy-rate reductions recessions, and led to a marked increase incidence of episodes where policy rates are likely be at, or near, effective lower bound on nominal rates. Using ECB’s New Area-Wide Model, we show that, if unaddressed, can cause substantial costs terms worsened ma...

Changes were only made to the Executive Summary to clarify the concepts of compatible and complementary policies. ABSTRACT The working paper " Binding Constraints to Trade Expansion: Aid for Trade Objectives and Diagnostics Tools " [OECD Trade Policy Working Paper No. 94] showed that the most common objectives of Aid for Trade have the potential to boost economic growth. However, this growth po...

A microscopic approach to macroeconomic features is intended. A model for macroeconomic behavior under heterogeneous spatial economic conditions is reviewed. A birth-death lattice gas model taking into account the influence of an economic environment on the fitness and concentration evolution of economic entities is numerically and analytically examined. The reaction-diffusion model can be also...

the purpose of this paper is to examine the determinants of the timing of bank failure/merger in 10 asian countries over the period of 1999-2007 using a multivariate logit model and a split population duration analysis. apart from bank-specific information, we also focus on the effects of macroeconomic and financial characteristics. the following empirical findings are obtained. first, the resu...

T raditionally an object of interest in microeconomics, models with privately informed agents have recently been used to study numerous topics in macroeconomics.1 Characterization of Pareto-optimal allocations is an essential step in these studies, because the structure of optimal institutions of macroeconomic interest depends on the structure of optimal allocations. In models with privately in...

ing the World As already mentioned, the WorldMarket of the agent-based model is actually a portal to an LCI database. This integration means that we can simulate a system in which we have a “lens” of complex dynamic behavior where agents interact with a static definition of the world. One Davis et al., Integration of LCA Into Agent-Based Modeling 321 R E S E A R C H A N D A N A LYS I S can furt...

We analyse the impact of interactions between monetary and fiscal policy on macroeconomic stability. We find that in the presence of sovereign default beliefs a monetary policy, which aims to stabilize inflation through an active interest rate policy, will destabilize the economy if the feedback from debt surprises back to the primary surplus is too weak. This result, which relies on endogenous...

This data article provides macroeconomic data that can be used to generate macroeconomic volatility. The data cover a sample of seven selected countries in the Asia Pacific region for the period 2004-2014, including both developing and developed countries. This dataset was generated to enhance our understanding of the sources of macroeconomic volatility affecting the countries in this region. A...

Macroeconomic models are usually developed in a large framework that comprises hundreds of equations. Some pitfalls, however, are inevitable such as a partial failure of forecasts and some theoretical shortcomings of a large macroeconomic model (Lawson 1992 and Wallis 1989). In the early 1990s, small scale macroeconomic model (SSMM) emerged as an alternative tool for comparing the results obtai...