摘要:

What relationship between domestic and foreign variables could explain the observed high correlation between domestic savings and investment in OECD countries with perfect capital mobility? Is such an explanation empirically supportable? This paper constructs a stochastic continuous‐time optimizing model of a small open country. It finds the formula for the implied theoretical correlation between domestic savings and investment—of interest in its own right—and calibrates the model using regression coefficients and stock market data from the US and Canada. The model accounts quite well for the observed investment‐savings correlation, even in the presence of perfect capital m

ISSN:0965-7576    

DOI:10.1111/j.1467-9396.1996.tb00091.x

出版商:Blackwell Publishing Ltd    

年代:1996

数据来源: WILEY

摘要:

Positive and normative aspects of trade policy are examined when firms offer incentive pay to workers, such as piece‐rate pay and profit sharing, to deal with worker moral hazard. Protection increases the incentive pay rate. Its effect on effort depends upon the degree of labor mobility and the type of the incentive pay. In the presence of a piece‐rate pay, protection induces second‐order welfare losses. But in the presence of profit sharing, there is a direct impact of protection on the incentive‐compatibility constraint facing firms and hence there is a first‐order positive effect o

ISSN:0965-7576    

DOI:10.1111/j.1467-9396.1996.tb00092.x

出版商:Blackwell Publishing Ltd    

年代:1996

数据来源: WILEY

摘要:

A situation is analyzed in which two countries negotiate the financing of costs that accrue if one of them switches onto a sustainable development path. The other country's incentive to pay arises as it benefits from the developing country's environmental resources, but at an ever declining rate as long as development remains nonsustainable. In an application to the protection of tropical rainforests it is shown that North to South redistribution of welfare would be substantial, yet the North would still gain enormously in efficiency terms. An explanation is given of why the Rio Conference failed in terms of rainforest protection.

ISSN:0965-7576    

DOI:10.1111/j.1467-9396.1996.tb00093.x

出版商:Blackwell Publishing Ltd    

年代:1996

数据来源: WILEY

摘要:

Although conventional wisdom suggests that export growth contributes positively to economic growth, empirical studies on the causal links between exports and output have provided little support for the exportled growth hypothesis. This paper reexamines the direction of causation by handling properly two important issues in causality tests: the characteristics of the data, and the choice of optimal lags. The results of this study show that in a sample of 32 economies, the export‐led hypothesis is supported by 17 economies and is strongly supported by 9 economie

ISSN:0965-7576    

DOI:10.1111/j.1467-9396.1996.tb00094.x

出版商:Blackwell Publishing Ltd    

年代:1996

数据来源: WILEY

摘要:

This paper introduces international capital mobility in a general‐equilibrium model of a small developing economy which is characterized by a dualistic economic structure. The model is then used to analyze the positive and the normative aspects of development policies that are often recommended for achieving employment‐related objectives in developing econom

ISSN:0965-7576    

DOI:10.1111/j.1467-9396.1996.tb00095.x

出版商:Blackwell Publishing Ltd    

年代:1996

数据来源: WILEY

摘要:

This paper models strategic taxation policy of home and host governments when a multinational enterprise sets transfer prices on globally joint inputs such as research and development. Tax credit and deduction allowances, as well as no taxation of foreign‐earned profits, result in identical optimal transfer‐price solutions and national income effects in both countries. An equilibrium home‐tax solution is to tax foreign‐earned profits at a higher rate than domestically earned profits. The multiantional responds by shifting profits abroad through transfer‐pricing m

ISSN:0965-7576    

DOI:10.1111/j.1467-9396.1996.tb00096.x

出版商:Blackwell Publishing Ltd    

年代:1996

数据来源: WILEY

摘要:

This paper reexamines the relationship between the Marshall‐Lerner (M‐L) condition and the effects of exchange‐rate movements on the trade balance, by integrating the role of product‐market structure and the related issue of strategic interaction on tradeables prices and internationa

ISSN:0965-7576    

DOI:10.1111/j.1467-9396.1996.tb00097.x

出版商:Blackwell Publishing Ltd    

年代:1996

数据来源: WILEY

摘要:

This paper analyzes a formal, dynamic model of the center‐periphery problem. The model features falling relative demand for agricultural goods, a higher rate of technical change in manufacturing, and a quality‐differentiated manufactured good. Income differences imply a potential for intra‐industry trade, while technical change generates product cycle type results. The main insight is that a closing of the North‐South technology gap does not necessarily imply catching up, because of the falling relative demand for agricultural goods. The South catches up only if it exports lower‐quality varieties of the manufactured good and closes the techn

ISSN:0965-7576    

DOI:10.1111/j.1467-9396.1996.tb00098.x

出版商:Blackwell Publishing Ltd    

年代:1996

数据来源: WILEY

摘要:

This paper examines the purchasing power parity (PPP) hypothesis over the modern float using data on 15 OECD currencies. Evidence is presented that suggests the price levels evolve as second‐difference stationary processes, i.e., integrated of order two (P1– I(2)). A necessary condition for PPP when prices areI(2) is that prices are cointegrated across countries to anI(1) relative price. In general this relative price is not the same as the simple price ratio. For some of the relationships examined, this relative price level is cointegrated with the exchange rate, implying a long‐run equilibrium between nominal exchange rates and p

ISSN:0965-7576    

DOI:10.1111/j.1467-9396.1996.tb00099.x

出版商:Blackwell Publishing Ltd    

年代:1996

数据来源: WILEY

摘要:

The Maastricht Treaty calls for a single European money in the third and final stage of European monetary integration. The purpose of this paper is to infer the preferred currency from the point of view of economic agents in each EMS country by ranking the realized distributions of returns from holding foreign currencies. These rankings are obtained using the notion of generalized stochastic dominance. The preferred currency varies with time and the portfolio considered. In all cases, the ECU is not supported as a likely dominant money.

ISSN:0965-7576    

DOI:10.1111/j.1467-9396.1996.tb00100.x

出版商:Blackwell Publishing Ltd    

年代:1996

数据来源: WILEY