Previous work by has shown that lumpy investment models well characterize individual expenditures on durables, in particular automobiles. In that class of models, a higher level of uncertainty generally implies that the household should tolerate a larger imbalance between the actual stock of the durable and the target stock before closing it by buying and/or selling. Then, if the level of uncer...

This study has examined the impact of inflation on GDP and unemployment rate in Pakistan. It was a longitudinal study for the period in 2000-2010. The data has been taken from secondary sources. The study concludes that inflation insignificantly influences GDP and unemployment and the correlation is negative. The correlation between unemployment and inflation is positive i.e. 0.477 and is insig...

This note presents a detailed formal derivation of the equilibrium conditions of a variation of the deep habit model developed by Ravn, Schmitt-Grohé, and Uribe (2003). In the present note, the single-period utility function depends on the quasi ratio of current consumption to the stock of habit of each variety, whereas in the original deep habit model it depends on the quasi difference of thes...

accentuate on the programs advocated by the IMF and the World Bank from the model known as the "Integrated Model IMF-World Bank". This research makes a comprehensive evaluation of the applicability of this model to analyze the performance of adjustment programs in the case of six countries in the Mediterranean and Middle East and North Africa (MENA) region, namely, Algeria, Egypt, Iran, Morocco...

We develop an unobserved-components approach to study surveys of forecasts containing multiple forecast horizons. Under the assumption that forecasters optimally update their beliefs about past, current, and future state variables as new information arrives, we use our model to extract information on the degree of predictability of the state variable and the importance of measurement errors in ...

The effects on ex ante optima of a lag in seeing monetary realizations are studied using a matching model of money. The main new ingredient in the model is meetings in which producers have more information than consumers. A consequence is that increases in the amount of money that occur with small enough probability can have negative impact effects on output, because it is optimal to shut down ...

Differential tax analysis is used to show how the optimal mix of inflation tax and direct taxation changes with the relative size of the hidden economy. The larger the relative size of the hidden economy, the smaller the optimal ratio of direct tax to inflation tax. Anecdotal empirical evidence supports this result. JEL Classification: E62, H21, H26, O17.

Several political and economic factors are involved in choosing exchange rate policy in Organization of Islamic Cooperation (OIC) countries. In the present study, these factors  have been investigated with an emphasis on OCA and political economic factors during 1990 -2014. The result shows that OCA and political economic factors as well as tradable sector are influential on exchange rate poli...