Long-run effects of monetary expansion in a two-sector model of endogenous growth
Monetary expansion affects the economy's long-term growth only when cash-in-advance constraint is implemented in investment spending. A distinct balanced-growth rate results when investment undergoes cash-in-advance constraint and consumption's intertemporal substitutability is not very high. On the other hand, capital growth creates a straightforward effect in balanced-equilibrium whenever labor-leisure choice is absent.
Publication Name: Journal of Macroeconomics
The last shall be first: efficient constraints on foreign borrowing in a model of endogenous growth
An analysis of optimal limits on the structure of foreign loans is presented. The analysis assumes conditions of an endogenous growth model where a trade-off between production and productivity growth in an open economy is given. It is shown that setting constraints to foreign borrowings generates short-term welfare increases. In addition, the use of tax on such loans as a fiscal tool sets efficient tax rate cycles.
Publication Name: Journal of Economic Theory
- Abstracts: Transitional dynamics of the search model with endogenous growth. Mitigating non-contractibility with interim randomization
- Abstracts: Transitional dynamics of economic integration and endogenous growth. Merger market dynamics: insights into the behavior of target and bidder firms
- Abstracts: Deviations based refinements of Nash equilibrium. Monetary policy and stock returns. Comparative statics predictions for changes in uncertainty in the portfolio and savings problems
- Abstracts: Regulating insider trading in betting markets. Endogenous instability in financial markets
- Abstracts: How elastic is the demand for labor in Belgian enterprises? Results from firm level accounts data, 1987-1994. Wage divergence and asymmetries in unemployment in a model with biased technical change