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PROGRESS TOWARDS CONVERGENCE 1996
PROGRESS TOWARDS CONVERGENCE 1996

... sustainable consolidation and great attention will have to be paid to the substance and not only to the accounting methods used in measuring both deficits and debts; that consolidation efforts need to be all the more resolute, the higher the initial stock of debt; and that sustainable fiscal consoli ...
The Spanish Sovereign Debt Crisis Governments Ethan Haswell
The Spanish Sovereign Debt Crisis Governments Ethan Haswell

... be too simplistic, but might lead them to come to predictions significantly different from reality. Some of the first authors to study the determinants of government policy include Roubini, Sachs, Honkapohia, and Cohen (1989). They studied the fiscal policies of OECD countries in from 1960 - 1979, ...
Capital Structure and Employment Flexibility
Capital Structure and Employment Flexibility

... in bad times, but similar exposure to total labor cost and wage concessions ex post.2 My paper also relates to the empirical literature that has developed various measures of operating ‡exibility and illustrated their relation to …nancial structure. Because …rms do not disclose costs on the basis o ...
N - Personal.psu.edu
N - Personal.psu.edu

... Conclusion: All else constant, an increase in wages will result in lower employment and lower profits. In terms of economy wide statistics, the unemployment rate will likely rise, the stock markets will likely fall (lower profits): There will also be upward pressure on prices as firms may try to mai ...
Who Works for Whom? Worker Sorting in a
Who Works for Whom? Worker Sorting in a

... many previous models of entrepreneurship. To isolate the effect of this feature, versions of the model is studied where the entrepreneurial sector wage is constrained to be equal to the corporate sector wage. Despite the uniform wage, worker sorting by productivity and assets prevails. In the uniform ...
Infrastructure and Private Sector Investment in Pakistan Looney, R.E.
Infrastructure and Private Sector Investment in Pakistan Looney, R.E.

... throughout the remainder of the 1990s. Specifically it could stifle the supply response expected from the government's economic reform program, with its special emphasis on privatization, deregulation and export promotion. At the same time, a significant expansion of public expenditures to provide t ...
The Equity Premium: Why Is It a Puzzle? Rajnish Mehra
The Equity Premium: Why Is It a Puzzle? Rajnish Mehra

... on growth and in Real Business Cycle theory is that it is scale invariant. Although the levels of aggregate variables, such as capital stock, have increased over time, the equilibrium return process is stationary. A second attractive feature is that it is one of only two preference functions that al ...
UUEPC Northern Ireland Competitiveness Report 2016
UUEPC Northern Ireland Competitiveness Report 2016

... Policy inputs – the foundation tier of the pyramid is the best performing tier of the Scorecard in terms of aggregated decile position, suggesting that improvements are likely in the tiers above as the impact of policy inputs feed through. Whilst the performance in this element is relatively strong ...
Chapter 36 MC — Five Debates Over Macroeconomic Policy
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... a. increase government expenditures when output is low and decrease them when output is high. b. increase government expenditures when output is low and do nothing when output is high. c. decrease government expenditures when output is low and increase them when output is high. d. decrease governmen ...
Estimating the Private Sector Rental Vacancy Rate for Canterbury
Estimating the Private Sector Rental Vacancy Rate for Canterbury

... We measure the private sector rental vacancy rate in the DBH Tenancy Bond database. It is a high frequency measure with the potential to replicate this at a regional level. We do not count every property in the housing stock and their nature of tenure. Our calculations should be interpreted as an es ...
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... the potential identified risk of underinvestment were to occur, it is estimated that employees would lose the opportunity of a 0.5 per cent per annum average increase of their real after-tax income over the next 50 years. In present value terms, this represents an average lost opportunity after tax ...
Compounding Rate Of Return
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... The rate of return is the actual figure you will be making as an earning from your investment (a number Warren likes to pay close attention to). Warren also pays close attention to the price you pay for a stock, as it is one major factor that will determine your rate of return. In order to calculate ...
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... where It+1 denotes the nominal rate of return on public debt, t+1 by the GDP deflator, and yt+1 is the growth rate of output. Gt+1 is a zero mean shock to government spending; i.e. the uncertain component of the primary surplus. Alternatively, Gt+1 can be viewed as a shock that occurs after the budg ...
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... In this article we will test whether the traditionally close relation between GDP, industrial production and stock prices over time horizons up to two years, that has been found by earlier studies, still holds up during the most recent stock market boom. All of the studies mentioned above analyze qu ...
Unit III Answers to Extra Practice Questions CHAPTER 9
Unit III Answers to Extra Practice Questions CHAPTER 9

... spending stayed relatively stable. The reason for this outcome was that there were offsetting factors that keep consumption spending high even as the stock of wealth declined. Consumer spending was little affected by the decline in the stock of wealth. These offsetting factors included the flow of i ...
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... rendered trivial through the application of Ricardian Equivalence. When optimal monetary and fiscal policy are considered then the analysis is usually based on a single benevolent policy maker jointly controlling both monetary and fiscal policy instruments (Benigno and Woodford (2003), Schmitt-Grohe ...
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The IS-LM Model - Spears School of Business

...  The IS curve tells us what the associated level of i for each Y*. In other words: for each goods market equilibrium what is the level of interest rate associated with that?  So, what we have is (i , Y *) Once we have (i * , Y ), Combining these two we can have (i * , Y *) .  The LM curve will gi ...
Asian Passports, the coming of age An overview and its demand
Asian Passports, the coming of age An overview and its demand

... Mutual Fund Recognition (“MRF”) scheme this year in July, which is expected to be fully operational by the beginning of 2016. As the ARFP rules are being finalised and MRF coming operational soon, this publication will help portray the mutual fund market of each of the participating economies of all ...
Investing in Aboriginal Education in Canada: An Economic
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... attainment of certain groups many years ago had significant beneficial effects on the subsequent lifetime earnings of these individuals. Two principal findings follow from this body of research: Rates of return to investments in education are high – and possibly higher than has generally been believ ...
New Jersey Economic Development Authority 2015 Annual Report
New Jersey Economic Development Authority 2015 Annual Report

... Message from CEO Melissa Orsen and President & COO Tim Lizura From financing programs for small businesses and not-for-profits, to mentoring and investment resources for technology and life sciences start-ups, to job creation and private investment spurred by tax credits under the Economic Opportun ...
v. saving behaviour and the effectiveness of fiscal policy
v. saving behaviour and the effectiveness of fiscal policy

... because a fiscal stimulus boosts disposable income and the propensity to consume out of an extra dollar of income is generally significantly less than one in the long term. More indirectly, private saving may rise because higher budget deficits drive up interest rate, which may cause financial “crow ...
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 ...
Major Points
Major Points

... common stockholders’ stream of expected dividend payments as being never-ending). Of course, the dividends that common stockholders expect to receive may not actually be realized. Unlike with bonds or preferred stock, nothing is promised regarding the amount of cash that will be paid as dividends to ...
Investors Guide To CMOs
Investors Guide To CMOs

... Prevailing market interest rates affect CMOs in two major ways. First, as with any bond, when interest rates rise, the market price or value of most types of ...
2.2.1 What
2.2.1 What

... there is high inflation it could affect their pension since they’ve invested their life savings in some pension schemes. For investors it is also very relevant since they are the ones making all the profit and all the money from this and also some risk. They are having low risk because the inflation ...
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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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