We propose a model to study the role of industry-level external economies scale in open economies. If elasticity governing strength is below inverse trade each industry, then specialization under frictionless consistent with comparative advantage, tractable even frictions, and all countries gain from trade. External lower gains except if country specializes industries high economies, they ampli...

this paper concentrates on investigating the effect of monetary instruments on macroeconomic variables using structural model over the period 1981- 2006. the main results of simulation show that decrease in the interest rate, increases investment but it's effect on production (gdp) is negligible. this weak effect is probably due to some factors such as, the introduction of some new project...

In this paper, I find that real U.S. GDP is better characterized as a trend stationary Markov-switching process than as having a (regime-dependent) unit root. I examine the effects of both assumptions on the analysis of business cycle features and their implications for the persistence of the dynamic response of output to a random disturbance. JEL Classification: E32, C22, E27.

This paper provides a simple dynamic optimization model of durable goods inventories. Closed-form solutions are derived in a general equilibrium environment with imperfect information and serially correlated shocks. The model is then applied to scrutinize some popular conjectures regarding the causes of the volatility reduction of GDP since 1984. JEL Classification: E22, E23, E32.

in this paper, the effect of trade openness on growth is examined across the members of organization of the islamic conference (oic) by using convergence-growth equation and gmm-system dynamic panel data estimator over the period 1980-2009. the results show that the overall trade, the trade with non-oic countries, and the investment in physical and human capital stimulate economic growth. in co...

abstract export of nonoil goods in economic activities is so important and its effect on economic and comparative growth is undeniable. so, emphasize on agricultural sector and development of export in this sector prepares good conditions, for iran, to be present at international markets relying its advantages. the study tries to recognize necessary policies to enhance agricultural export poten...

We examine global dynamics under infinite-horizon learning in New Keynesian models where monetary policy practices either pricelevel or nominal GDP targeting and compare these regimes to inflation targeting. These interest-rate rules are subject to the zero lower bound. Robustness of the three rules in learning adjustment are compared using criteria for the domain of attraction of the targeted ...

The paper examines the interrelationship between fiscal and monetary policy in a two-country monetary union. The worst scenario occurs when an independent central bank (CB) sets the nominal interest rate and responds to rising government debt/GDP ratios by monetisation. The result is high inflation, high debt/GDP ratios and a large public sector. Government debt and inflation are contained if t...

The Size of the Shadow Economies of 145 Countries all over the World: First Results over the Period 1999 to 2003 Using the DYMIMIC approach, estimates of the shadow economy in 145 developing, transition, developed OECD countries, South Pacific islands and still communist countries are presented. The average size of the shadow economy (in percent of official GDP) over 2002/2003 in developing cou...

This paper employs Hamilton’s (1989) original Markov-switching model and time-varying Markov-switching model developed by Filardo (1994), respectively, to investigate the business cycle and evaluate the usefulness of the coincident and leading indexes in dating the business cycle and in predicting future GDP in Taiwan. The empirical results do suggest that these two indexes help date the busine...