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Optimal Automatic Stabilizers
Optimal Automatic Stabilizers

... aggregate slack is more responsive to the replacement rate for two reasons. First, there are more unemployed workers with high marginal propensities to consume receiving the transfers. Second, the effect of social insurance on precautionary savings motives is larger when there is a greater risk of u ...
Chapter 1  Fiscal consolidation targets, plans and measures in OECD countries
Chapter 1 Fiscal consolidation targets, plans and measures in OECD countries

... providing credible fiscal consolidation plans in which the financial markets have sufficient confidence, Italy and Spain have experienced serious reactions in the financial markets which have triggered policy reactions. Belgium also experienced rising long-term interest rates in 2011 (Figure 1.2C). ...
An Indirect Impact of the Price to Book Value to the Stock Returns
An Indirect Impact of the Price to Book Value to the Stock Returns

... Based on the above findings and discussion, the following conclusions can be made pertaining to the effects of PBV determinants and their indirect impacts to the stock returns of the property companies in Indonesia: 1. The DPR was found to have an insignificant effect partially on the PBV of the pro ...
THE ECONOMICS OF POST-COMMUNIST TRANSITION
THE ECONOMICS OF POST-COMMUNIST TRANSITION

Basics and Problems - Ace MBAe Finance Specialization
Basics and Problems - Ace MBAe Finance Specialization

... collection periods for other drugstore chains since this is basically a cash business for the majority of sales. Still, a significant change has occurred for drugstores because about 90 percent of pharmacy sales are to a third party (i.e., these pharmacy sales are reimbursed by a managed-care compan ...
Lecture Notes - Wiwi Uni
Lecture Notes - Wiwi Uni

... In Section 3 we will study why, on average, the economy grows over time. This area of study is called growth theory and we will discuss the neoclassical growth model. As a sneak preview, the economy grows over time because: 1 The data have quarterly frequency, i.e. there one observation for real GDP ...
Police Superannuation Act*1990
Police Superannuation Act*1990

... new scheme contributor means a person who becomes a contributor on or after the commencement of this Act (but excluding a cadet who is an old scheme contributor); notional salary in relation to a contributor whose employment has ceased temporarily or permanently (including a contributor who has died ...
Working Papers Center for International Development at Harvard University
Working Papers Center for International Development at Harvard University

... Aside from measuring composition of capital inflows in terms of the relative share of the FDI versus non-FDI, two other compositions of capital flows have been suggested to be relevant in discussing currency crises. The first is the term structure of foreign borrowing. It has been suggested that the ...
The public budget balance -
The public budget balance -

Economics of Money, Banking, and Fin. Markets, 10e, Global Edition
Economics of Money, Banking, and Fin. Markets, 10e, Global Edition

... pursuing expansionary policies once expectations are set. The problem is that this policy results not in higher output, but in higher actual and expected inflation. The solution is to adopt a rule to constrain discretion. Nominal anchors can provide the necessary constraint on discretionary behavior ...
What drives the short-run costs of fiscal consolidation?
What drives the short-run costs of fiscal consolidation?

"Does Government Spending Stimulate Private Activity?"
"Does Government Spending Stimulate Private Activity?"

... payments to military and civilian personnel, and consumption of government capital. Rotemberg and Woodford (1992) made this distinction in their empirical work by examining shocks to total defense spending after conditioning on lags of the number of military personnel. Wynne (1992) was the first to ...
Mauritius is at a crossroads
Mauritius is at a crossroads

... open competition in the global economy. And it must do so in an unusually difficult environment. After 20 years of remarkable performance, the economy has fallen off a high growth plateau of about 6 percent toward the 2-3 percent range. The creation of new jobs is now too slow to prevent an increase ...
We have made a final decision on Ausgrid`s distribution
We have made a final decision on Ausgrid`s distribution

... customers through distribution network charges. Our final decision allows Ausgrid to recover $6576.4 million ($nominal) from its customers over the 2015–19 regulatory control period. If we had accepted Ausgrid’s proposal, it would have recovered $9754.0 million ($nominal) over the 2015-19 period. Ou ...
The public budget balance - fiscal indicators and cyclical sensitivity
The public budget balance - fiscal indicators and cyclical sensitivity

... quantitative estimate that captures the total effect of all changes, large and small. We use the fiscal indicator to do this decomposition of the budget balance for each of the Nordic countries for a period from the 1970s to 1997. This illustrates the method that is used, as well as shedding light o ...
Inflation Report
Inflation Report

... and is rising. It may appear that growth has become more self-driven. The rise in prices for consumer goods, which was close to zero a year ago, has gradually picked up. Even though an unexpected fall in prices for some imported goods reduced consumer price inflation in the first months of this year ...
Chapter 7 Bequests and the modified golden rule
Chapter 7 Bequests and the modified golden rule

... the received bequest, bt+1 . In this perspective it might seem inadequate that we have considered only the partial derivative of Ut w.r.t. bt+1 ; not the total derivative. Fortunately, in view of the envelope theorem our procedure is valid. Applied to the present problem, the envelope theorem says t ...
The Information Content of Tax Expense: A Firm- and Market
The Information Content of Tax Expense: A Firm- and Market

... expense is useful for market valuation because higher levels of aggregate taxation indicate higher levels of macroeconomic risk due to taxation’s negative impact on aggregate investment and capital accumulation (Croce et al. [2012]). Second, it suggests that the discount rate news contained in firm ...
When is the Government Spending Multiplier Large?
When is the Government Spending Multiplier Large?

... One practical objection to using fiscal policy when the zero bound binds is that there are long lags in implementing an increase in government spending. Motivated by this consideration we study the size of the government spending multiplier in the presence of implementation lags. We find that the ke ...
World of Work Report 2009
World of Work Report 2009

... will have long-lasting negative social and economic implications. The Report estimates that almost 43 million workers are at-risk of exclusion from the labour market – because, if the right programmes are not put in place or existing ones are phased out, individuals could shift to long-term joblessn ...
The Facts on Medicare Spending and Financing
The Facts on Medicare Spending and Financing

... Over the 2014-2024 time period, the rate of Medicare per capita spending growth is expected to be 0.7 percentage points larger than projected growth in GDP per capita, while private health insurance per capita spending is expected to grow 1.3 percentage points faster (Figure 5). Over the longer term ...
Optimal Monetary Policy in a Currency Union: Implications of a
Optimal Monetary Policy in a Currency Union: Implications of a

... interest rate Rtl . For simplicity we can approximate the lending rate Rtl by the policycontrolled risk-free interest rate Rt . Any wedge between these two interest rates will be captured by the parameter z i 0, which measures the strength of the country-speci…c cost channel. Note that it is the nom ...
Multiple-choice questions to accompany
Multiple-choice questions to accompany

... 8. "The government insists that the CPI measures consumer prices, not the cost of living. But don't shoot the CPI - whether bringing good news or bad, it's the best messenger we've got." During a typical inflation a) the CPI rises by less than the cost of living b) the CPI rises by more than the cos ...
Three Essays on The Term Structure of Interest Rates
Three Essays on The Term Structure of Interest Rates

... demand function.4 It is technically difficult to solve for the rational expectation of the covariance in complicated asset pricing models. For this reason, we employ three asset models. Consider a partial equilibrium model of exchange rate determination. For simplicity, the overall price level is as ...
An Analysis of Public and Private Sector Employment
An Analysis of Public and Private Sector Employment

... employment in Canada declined during the 1990s, its growth resumed during the first decade of the 21st century. Specifically, there was a decline in the public sector share of employment starting in 1992, from 26.1 percent to 22.3 percent by 2003. Subsequently, an increase began, with a peak of 24.4 ...
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Pensions crisis

The pensions crisis is a predicted difficulty in paying for corporate, state, and federal pensions in the United States and Europe, due to a difference between pension obligations and the resources set aside to fund them. Shifting demographics are causing a lower ratio of workers per retiree; contributing factors include retirees living longer (increasing the relative number of retirees), and lower birth rates (decreasing the relative number of workers, especially relative to the Post-WW2 Baby Boom). There is significant debate regarding the magnitude and importance of the problem, as well as the solutions.For example, as of 2008, the estimates for the underfunding of U.S. states' pension programs range from $1 trillion using the discount rate of 8% to $3.23 trillion using U.S. Treasury bond yields as the discount rate. The present value of unfunded obligations under Social Security as of August 2010 was approximately $5.4 trillion. In other words, this amount would have to be set aside today such that the principal and interest would cover the program's shortfall between tax revenues and payouts over the next 75 years.Some economists question the concept of funding, and, therefore underfunding. Storing funds by governments, in the form of fiat currencies, is the functional equivalent of storing a collection of their own IOUs. They will be equally inflationary to newly written ones when they do come to be used.Reform ideas are in three primary categories: a) Addressing the worker-retiree ratio, via raising the retirement age, employment policy and immigration policy; b) Reducing obligations via shifting from defined benefit to defined contribution pension types and reducing future payment amounts (by, for example, adjusting the formula that determines the level of benefits); and c) Increasing resources to fund pensions via increasing contribution rates and raising taxes.
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