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Our currency, your problem? The global effects of the euro debt crisis
Our currency, your problem? The global effects of the euro debt crisis

... papers however do not address the central question of this paper, namely the transmission of the euro debt crisis to the rest of the world. The main result of this paper is the euro debt crisis events have important e¤ects on global …nancial markets, signi…cantly more so for advanced than for emergi ...
NBER WORKING PAPER SERIES AND BUDGET DEFICITS, TAX
NBER WORKING PAPER SERIES AND BUDGET DEFICITS, TAX

... The saying that failure is an orphan while success has many selfproclaimed fathers can be applied to business cycles in general and to this ...
Download (PDF)
Download (PDF)

... in theory. With the exception of Slemrod (2004) and Davies and Voget (2008), each study provides a rationale that is different than the one developed in our paper. For instance, Devereux et al. (2008) control for country size with the assumption that larger countries probably have a higher proportio ...
Sustainable Withdrawal Rates From Your Retirement Portfolio
Sustainable Withdrawal Rates From Your Retirement Portfolio

... Other studies have taken a more academic approach. Ho, Milevsky, and Robinson (1994) developed an analytical model to determine the optimal allocation between a risky and risk-free asset in order to minimize the probability that withdrawals will prematurely exhaust a retirement fund. Using historica ...
Publisher_macro_ch_12_13th
Publisher_macro_ch_12_13th

... constituents but are reluctant to raise taxes because they impose a visible cost on voters. • Given the political incentives, budget deficits will be far more attractive than surpluses. • As a result, deficits will be far more common than surpluses and discretionary fiscal policy is unlikely to be i ...


... Real estate has several unique characteristics that affect its value. The first one is durability. A building can last for decades or even centuries, and the land underneath it is practically indestructible. Because of this, real estate markets are modeled as a stock/flow market. About 98% of suppl ...
This PDF is a selection from an out-of-print volume from the... of Economic Research
This PDF is a selection from an out-of-print volume from the... of Economic Research

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How Significant is Africa`s Demographic Dividend for Its Future
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Financial Liberalization and Allocative Efficiency (April 2011)
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Background Report Volume 2 (PDF 2293KB)
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Quarterly Report on the Euro Area Vol. 14, No. 1 (2015)
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... euro area as a whole is now posting a current account surplus. In a past issue of the Quarterly Report on the Euro Area, the nature of this rebalancing has been analysed through the lens of current account. (2) The aim of this section is to look more in depth at how this recent rebalancing has been ...
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... Hybrid pension plans offer employees the best features of both defined benefit and defined contribution plans. In this work, we consider the hybrid design offering a defined contribution benefit with a defined benefit guaranteed minimum underpin. This study applies the contingent claims approach to ...
Will my portfolio give me an inflation plus return?
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... most, although Japan has never entirely recovered from its recession. For other developed countries growth and disinflation resumed, as did attractive positive returns, though at a lower level than during the economic miracle. There was little during this disinflationary era that active asset alloca ...
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... and in 20 industries in the period 2000-5 (Yuan and Li, 2008). Therefore, the overtaking strategy might well result in a declining labor share and a rising capital share in income by encouraging resources to flow to capital and technology-intensive industries. In addition to increasing capital emplo ...
Certainty Equivalents and Risk-Adjusted Discount Rates
Certainty Equivalents and Risk-Adjusted Discount Rates

... In Panel A of Table 13B-2 we show the operating cash flows’ NPVs. The NPV of the coal plant, discounting at the 10% WACC, is $357 million. At the 10% WACC, the nuclear plant’s operating cash flows have a higher NPV, $468 million, but this value does not reflect the nuclear plant’s decommissioning co ...
Bolivia: Ex Post Assessment of Longer-Term Program
Bolivia: Ex Post Assessment of Longer-Term Program

... the past decade, Bolivia witnessed considerable progress in living conditions, access to basic social services and outcome indicators. Poverty as measured by unsatisfied basic needs fell significantly from 71 percent of the population in 1992 to 59 percent in 2001, although mainly in urban areas, an ...
Bade_Parkin_Macro_Lecture_CH17
Bade_Parkin_Macro_Lecture_CH17

... Similarly, if real GDP is less than potential GDP, employment is less than its full employment level and the unemployment rate rises above the natural unemployment rate. ...
Inflation Cycles
Inflation Cycles

... bring cycles in inflation and output  Explain the short-run and long-run tradeoff between inflation and unemployment  Explain how the mainstream business cycle theory and real business cycle theory account for fluctuations in output and employment ...
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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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