This paper studies the role of differences in patterns production and international trade on business cycle volatility emerging developed economies. We study a multisector small open economy which firms produce commodities manufactures. estimate model to match key cross-sectional time-series across countries. Emerging economies run surpluses deficits manufactures, while sectoral flows are balan...

The purpose of this paper is to review the empirical Public Choice literature explaining deficits levels in federated states. First, I descritbe theoretical constructs, showing how new theories are developed by releasing one of the basic Ricardo-Barro assumptions. Empirical results bearing on the federated states of Australia, Canada, Germany, Switzerland, and the United States are then reviewe...

The paper offers an empirical taxonomy of the factors driving China’s current account. A simple present-value model with non-tradeable goods explains more than 70 percent of current account variability over the period 1982–2007, including the persistent surpluses since 2001. It also correctly predicts the decline of China’s current account since 2008. Expected increases in the prices of non-tra...

We consider optimal government debt maturity in a deterministic economy which the can issue any arbitrary structure and bond prices are function of government’s current future primary surpluses. The sequentially chooses policy, taking into account how choices—which impact policy—feed back prices. show that issuing consols constitutes unique stationary portfolio, as it boosts credibility to poli...

This paper pursues a multiple scenario analysis until 2030 to identify past and potential future labour supply demand dynamics of four different skill groups in the six Western Balkan (WB6) countries. Simulation results baseline show that shortages surpluses would coexist: In all WB6 countries, low educated experience within or shortly after projection period while some countries there is evide...

The relation between defined-benefit pension discount rates and funding status is more complex than it might first appear. Existing evidence suffers from estimation biases which makes precise inference unreliable. We document the quantify their impact on in to corporate window dressing of status. Our empirical UK suggests that sponsors use discretion choice rate not only reduce reported deficit...

We study the impact of higher bank capital requirements on corporate lending spreads using granular bank- and loan-level data. Our empirical strategy employs heterogeneity in across banks time implementation Switzerland. find that changes deviation from regulatory minimum affect asymmetrically. In response to a reduction deviation, with deficits respect their risk-weighted requirement raise rel...

Subsidies to consumers may cause firms charge higher prices, which offsets consumer benefits from subsidies. We study a subsidy program design that mitigates such price increases by making products' eligibility for dependent on firms' commitment ceilings. To quantify the importance of competition eligibility, we develop structural model and an estimation procedure accommodate binding pricing co...