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Money Demand in a Banking Time Economy AgEcon
Gillman, Max; Otto, Glenn.
The paper presents a theory of the demand for money that combines a special case of the shopping time exchange economy with the cash-in-advance framework. The model predicts that both higher inflation and financial innovation - that reduces the cost of credit - induce agents to substitute away from money towards exchange credit. This results in an interest elasticity of money that rises with the inflation rate rather than the constant elasticity found in standard shopping time specifications. A number of the key predictions of the banking time theory are tested using quarterly data for the US and Australia. We find cointegration empirical support for the model, with robustness checks and a comparison to a standard specification.
Tipo: Working or Discussion Paper Palavras-chave: Money demand; Cointegration; Financial technology; Banking time; O42; E13; E41; E51; Financial Economics.
Ano: 2003 URL: http://purl.umn.edu/26221
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IS 'GETTING THE PRICES RIGHT' ALWAYS RIGHT? HOW TRADE LIBERALIZATION CAN FAIL AgEcon
Gaitan, Beatriz; Pavel, Ferdinand.
We present a general equilibrium model with oligopsonistic market structure in one of the sectors. Buyers of inputs can set the price of inputs by being involved in rent seeking activities. The framework developed is applied to the Bulgarian economy in particular to the agro-food chain. From the application to the Bulgarian economy we find that if there are market imperfections, such as oligopsonistic behavior in the economy, there are no significant welfare gains from free trade. Significant welfare gains from trade are observed only when a competitive structure prevails. We show that eliminating this market imperfection can bring important welfare implications and an efficient reallocation of resources.
Tipo: Conference Paper or Presentation Palavras-chave: Imperfect Competition; Oligopsony; International Trade; Growth and Development; Transition Economies; International Relations/Trade; D34; E13; F12; L16.
Ano: 2000 URL: http://purl.umn.edu/21881
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Liberalization and Structural Change: Evidence from Nepalese Manufacturing AgEcon
Sharma, Kishor.
The consequences of liberalization on structural changes are examined using data from manufacturing industry in Nepal which is classified as a least developed country. This is important because doubts that liberalization may not solve the problems of low-income developing countries remain strong due mainly to low supply elasticities and the early stage of industrialization. Results suggest some structural changes in manufacturing output and trade orientation. However, no significant improvements were recorded in the overall productivity growth and spatial distribution of manufacturing which appear to be due mainly to the lack of basic infrastructure and the shortage of skilled manpower. Thus, appropriate investment policies, which channel resources to...
Tipo: Working or Discussion Paper Palavras-chave: Liberalization; Import penetration; Export intensity; Total factor productivity growth; Nepal; International Relations/Trade; E13; F13; F14; F43; 041.
Ano: 2000 URL: http://purl.umn.edu/28394
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Outward-Orientation and Development: Are Revisionists Right? AgEcon
Srinivasan, T.N.; Bhagwati, Jagdish.
The costs of import substitution (IS) as a strategy for industrialization, which was deemed synonymous with economic development by many development economists of the fifties and sixties, were shown to be substantial in the influential and nuanced studies of the seventies and eighties under the auspices of OECD, NBER and World Bank. These studies played a critical role in shifting policies in several developing countries away from the IS strategy. Recently there has been a proliferation of cross country regressions as a methodology of analysis of issues relating to growth, trade and other issues. Both proponents (e.g. Sachs and Warner (1995)) and opponents (Rodriguez and Rodrik (1999)) of the view that openness to trade is linked to higher growth have...
Tipo: Working or Discussion Paper Palavras-chave: Developing countries; Economic development; Economic growth; International trade; Openness; Import substitution; Export promotion; Cross-country regressions; International Development; E13; F11; F14; F43; 041; 057.
Ano: 1999 URL: http://purl.umn.edu/28476
Registros recuperados: 4
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