We look at privatization in a general equilibrium model of a small, tariff-distorted, open economy. There is a differentiated good produced by both private and public sector enterprises. A reduction in government production in order to cut losses from such production raises the returns to capital and increases the tariff revenue, which are welfare improving. However, privatization also leads to...

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In this paper, we have examined the importance and implications of globalisation due to FDI for one particular small country: the Netherlands. Although it has limited resources and size, the Netherlands is home to the sixth largest outward FDI stock in the world, and also is one of the most important destinations for inward FDI activity. Its location advantages are, inter alia, a function of it...

We estimate small open economy models with involuntary unemployment using Australian data from 1993 to 2007, focusing on hiring costs and real wage rigidity. We find a strong preference for models with hiring costs, which account for 0.97% of GDP. The data favour models with real over nominal wage rigidity. Impulse responses to technology shocks reveal no productivityemployment puzzle for the p...

n engl j med 360;13 nejm.org march 26, 2009 1278 cumstances (such as when a vendor creates a PHR specifically for a covered entity), vendors such as Microsoft and Google are not covered by HIPAA. Microsoft says it will seek patients’ consent before sharing data with third parties, but none of these application suppliers are covered by HIPAA. Whatever the business model for PHRs, lawmakers shoul...

We analyze optimal policy in a simple small open economy model with price setting frictions. In particular, we study the optimal response of the nominal exchange rate following a terms of trade shock. We depart from the New Keynesian literature in that we explicitly model internationally traded commodities as intermediate inputs in the production of local final goods and assume that the small o...

We study optimal fiscal policy in a small open economy characterized by two main frictions – incomplete financial markets and an inability of the government to commit to policy. Our main contribution is to show that in this environment, the best sustainable policy can amplify and prolong shocks to output. In particular, the government’s credibility not to expropriate foreign capital endogenousl...

One of the most important trends in the world economy in recent decades has been the improvement of the communications networks (e.g., the Internet and satellite communications networks). Technology penetrates all aspects of human life and in recent years has connected people all over the globe through the World Wide Web. With lower communications costs have come a growing connectivity of indiv...

This paper uses a multivariate vector error-correction generalized autoregressive conditional heteroscedasticity model to investigate the effect of British grain prices on their Irish equivalents. We find that in the long run the law of one price holds and in the short run the model captures the salient features of Irish grain prices. The model is used to compute rolling forecasts of the condit...