This paper investigates the incentives to commit price or retain price flexibility in a model in which exporting firms face different degrees of exchange rate uncertainty. The result shows that introducing exchange rate uncertainty can lead to the endogenous emergence of an unique leader-follower equilibrium; which firm emerges as price leader depends on the substitutability of products, the ma...

The paper considers alternative monetary policy regimes within a calibrated macroeconomic model with a traded and a non-traded sector. Two classes of regimes are considered; in°ation targeting and exchange rate targeting. When the target variable is completely stabilized, both rules have poor stabilizing properties for all real variables nominal exchange rate targeting is even dynamically unsta...

Using panel structural VAR analysis and quarterly data from four industrialized countries, we document that an increase in government purchases leads to an expansion in output and private consumption, a deterioration in the trade balance, and a depreciation of the real exchange rate (i.e., a decrease in the domestic CPI relative to the exchange-rate adjusted foreign CPI). We propose an explanat...

We investigate the interplay between government credibility and the visibility of policy-making, using the choice of a nominal anchor as an important example of how governments control visibility. We show that visibility has an important influence on how governments acquire credibility, and for this reason is a variable that governments use strategically. Policy-makers with stronger commitment ...

We build a monetary model to show how expected revaluations lead to the instability of a pegged exchange rate regime. This model assumes current account convertibility and some degree of capital control, and fundamentally sound domestic policies and economy, as is the case in China. The model demonstrates that market-oriented interest rates can act as an automatic stabilizer to ease revaluation...

This letter extends recent work by Bahmani-Oskooee (Bahmani-Oskooee, M., Do exchange rates follow a random walk process in Middle Eastern countries? Economics Letters 1998;58:339–344) on testing long-run purchasing power parity for Middle Eastern countries during the post-Bretton Woods period. Using multivariate nonlinear models, strong support is provided for highly nonlinear reversion of real...

Multi-agent software systems can be modeled as complex, dynamic systems in which agent adaptation and interaction occur continuously and concurrently. A genetics inspired view has agent adaptation occurring via the exchange of encoded agent characteristics (genes). An economics inspired view has agent adaptation driven by changes in prices and supply and demand. Interactions of economics and ge...

Based on the spatial economics and regional innovation cooperation theory, this paper modified and redefined the spatial knowledge spillover model by Caniels, and then made empirical analysis on the influence factors of knowledge exchange among members in the innovation network via panel data method. This paper takes forward fixed traffic distance. Then it has proved the important influence fro...

Background : New antibiotics efficacious in infections caused by resistant Gram-positive microorganisms and with acceptable costs for national health systems per unit of effectiveness are needed. Objective : This paper aimed to summarize all available evidence regarding the pharmacoeconomics of linezolid. Methods : A systematic review of pharmacoeconomic analyses through a non-restricted litera...