I develop a novel link between frictions in international financial markets and fiscal procyclicality. Complementing existing evidence, A decomposition of government expenditure into social spending and public good spending reveals that the cyclical correlation of social spending exhibits the biggest differences across countries. I build a small open economy model with income inequality, endoge...

Carcinoembryonic antigen-related cell adhesion molecules (CEACAMs) belong to a group of mammalian immunoglobulin-related glycoproteins. The CEACAM family of proteins has been implicated in intracellular-signalingmediated effects that govern the growth and differentiation of normal and cancer cells. In this study, the expression of CEACAMs was studied immunohistochemically in the skin of patient...

Well over a trillion dollars worth of state-owned firms have been privatized since 1980. The traditional argument is that governments choose to privatize in response to fiscal pressures. In this study, the authors examine the impact of IFI conditionality on privatization and find that IMF conditionality, in particular, has an important indirect economic benefit. Investors are willing to pay mor...

A windfall of natural resource revenue (or foreign aid) faces government with choices of how to manage public debt, investment, and the distribution of funds for consumption, particularly if the windfall is both anticipated and temporary. We show that the permanent income hypothesis prescription of an ever-lasting increase in consumption financed by borrowing ahead of the windfall and then accu...

Recent emerging market crises have emphasized the fluctuating character of trade’s reaction after financial crises, in contradiction with the apparently simple theoretical impact of such events on trade, which is essentially described by the well-known J-curve mechanism.. We use a gravity-like equation to assess the impact of these events on bilateral sectoral trade and reveal the elements whic...

Recently, a dramatic accumulation of foreign exchange reserves has been widely observed among developing countries. The purpose of this paper is to explore what macroeconomic impacts accumulated foreign reserves have in developing countries. In the first part, we analyze a simple open economy model where increased foreign reserves reduce costs of liquidity risk. Given the amount of foreign rese...

A hypergraph is 2-intersecting if any two edges intersect in at least two vertices. Blais, Weinstein and Yoshida asked (as a first step to a more general problem) whether every 2-intersecting hypergraph has a vertex coloring with a constant number of colors so that each hyperedge has at least min{|e|, 3} colors. We show that there is such a coloring with at most 5 colors (which is best possible...

Article history: Received 12 November 2009 Received in revised form 27 July 2010 Accepted 28 July 2010 Available online 6 August 2010 We provide new evidence that differences in international tax rates and tax regimes affect multinational firms' debt location decisions. Our sample contains 8287 debt issues from 2437 firms headquartered in 23 different countries with debt-issuing subsidiaries in...

A Financial Stability Fund set by a union of sovereign countries (e.g. the European Stability Mechanism) can improve countries’ ability to share risks, borrow and lend, with respect to the standard instrument: sovereign debt financing. Efficiency gains arise from the ability of the fund to offer long-term contingent financial contracts, subject to limited enforcement and moral hazard constraint...

This paper studies the impact of macroeconomic volatility/uncertainty on the accumulation of net foreign assets of a country. We first show that, in OECD economies over the period 1970-2012, increases in country specific macroeconomic volatility are, after controlling for wide array of factors, significantly associated with accumulation of net foreign assets. An increase in volatility (measured...