Showing papers in "European Economic Review in 1988"

TL;DR: In this paper, the authors used flow of funds data to compare methods of finance in 5 countries over the period 1970 to 1985 and found that the degree of consolidation of accounts, reciprocal arrangements between borrowers and lenders and compensating deposit requirements on borrowers no longer distort financing patterns.

TL;DR: In this article, it is argued that EMS membership brings potentially large credibility gains for policy-makers in inflation-prone countries, since not only it attaches an extra penalty to inflation (in terms of real appreciation), but makes the public aware that the policymaker is faced with such penalty, and thus helps to overcome the inefficiency stemming from the public's mistrust of the authorities.

TL;DR: The idea that freedom of choice is quite central to leading a good life is not a new one as mentioned in this paper, and the importance of the quality of life of the members of the society in judging the success of economic policies is easy to see.

TL;DR: In this article, a new and alternative specification is put forward and tested, which assumes that in the investment decision process, foreign locations are in competition not only with each other but also with the home country of the investor.

TL;DR: In this article, the effects of changes in the internal market of the European Community in a partial equilibrium model of imperfect competition with economies of scale were studied, and the model is numerically calibrated to data on ten industries.

TL;DR: In this paper, the authors investigate the correlation between the hiring and firing regulations in Western Europe and Japan and their total absence in the United States and conclude that a fairly wide spread of moderate but specific policy reforms appears warranted with a view to helping improve the European employment situation.

TL;DR: The authors constructs a conjectural variations model of international oligopoly in which the home country's optimal policy responses to the foreign government's subsidies and foreign firms' dumping can be calculated, and some theoretical support is found for tariffs that countervail part of the foreign export subsidy; the optimal fraction depends on the size of own and cross effects in demand and the extent of market competition.

TL;DR: In this paper, the authors present some quantitative evidence on the relationship between foreign aid and economic growth in low-income countries of Sub-Saharan Africa and show that aid is positively and significantly correlated with investment, and fix capital formation contributed to the rate of growth.

TL;DR: This article presented an empirical analysis of long-run purchasing power parity (PPP) during the 1920s float, using recently developed methodology on the cointegration of economic time series.

TL;DR: In this paper, the behavior of output and prices is compared using a stochastic specification which allows asymptotic variances to be obtained without difficulty, and two alternatives for monetary coordination are then considered.

TL;DR: A re-analysis of the data showed that the results of Frey and Weck-Hannemann's model are extremely unstable, and cannot be regarded as reliable statements about the shadow economy of these 17 countries as mentioned in this paper.

TL;DR: In this paper, the authors apply two models of repeated games to analyze the strategic interaction between an exchange rate setting policy maker and a wage setting trade union, and show how a devaluation-wage spiral may result from a conflict of interest over the real wage.

TL;DR: In this paper, a general production function framework for the analysis of capacity output and long-run factor demands in a world consisting of small open economy (SOE) is presented. But this framework is not applicable to the Irish economy, since the factors of each country are homothetic in world output and weakly separable from the factors in all other countries.

TL;DR: In this paper, a new data set, forward rate data for 24 countries, including many small industrialized countries and seven LDCs, was used to decompose the real interest differential into two parts: the covered interest differential, or political premium, and the real forward discount, or currency premium.

TL;DR: In this paper, the authors examined the anti-competitive effects of exclusive territorial arrangements among the retailers of two products which are imperfect substitutes and showed that such arrangements are shown to increase consumer prices; under plausible conditions the increase in consumer prices is sufficiently large to more than offset the deleterious effects from double marginalization resulting from reduced competition among retailers.

TL;DR: In this paper, the authors extend the recent literature on balance-of-payments crises by allowing real effects to be connected with them, taking into account the fact that the viability of the regime is policy dependent.

TL;DR: The Arrow Debreu model has been criticised by as discussed by the authors, who argued that it is ill-suited to deal with competition in the central area to which anti-trust is applied -the industrial sectors of modern economies.

TL;DR: In this paper, the authors reexamine the relationship between potential competition, industry structure and welfare in a market subject to a sequential entry threat where firms can make quantity commitments and have access to a constant returns technology.

TL;DR: In this paper, the determinants of intra-European trade in manufactured goods are examined using three models: the first model tests whether inter-industry specialization between pairs of countries can be explained in terms of inter- industry differences in factor intensities and inter-country differences in Factor endowments.

TL;DR: In this paper, the joint determination of aggregate supply, the real exchange rate and the current account in response to changes in government spending is studied, in a model where there is no uncertainty in the aggregate, but where individuals are uncertain about their lives' duration.

TL;DR: In this paper, the authors discuss the relationship between the reform of a socialist system and the liberty of the individual, and the topics chosen reflect a value judgement, motivated by moral and political philosophy, and they revolve around the issue of individual freedom.

TL;DR: The authors analyzed the demand for education in the framework of the human capital theory extended with employment prospects that depend on the amount of education and found substantial empirical support for the theory that high unemployment does not drive youth towards additional education, but youth strives for more education in order to improve their employment prospects.

TL;DR: In this article, an applied general equilibrium model of the Spanish economy is used to analyze the impacts of the indirect tax reform on relative prices, resource allocation, and income distribution, using the information contained in the social accounting matrix constructed by Kehoe et al. (1985).