Showing papers in "Journal of Macroeconomics in 1994"

TL;DR: In this article, the extent to which government capital contributes to production was investigated using panel data for seven countries in each year between 1963 and 1988, and no statistically significant evidence was found that government capital is productive.

TL;DR: In this paper, the authors investigated the interrelationship among the stock markets in four newly industrialized economies (NIEs) in Asia, Hong Kong, Singapore, and the United States.

TL;DR: In this paper, the empirical validity of PPP as a long-run equilibrium relationship in a sample of thirteen "high-inflation" countries using quarterly data over the modern floating period and recently developed techniques of cointegration and error-correction model.

TL;DR: The authors examined the sources of economic fluctuations in seven OECD small open economies and found that output fluctuations are primarily explained by domestic supply shocks, trade balance movements are explained mostly by domestic absorption shocks, and spillover effects of external shocks on the domestic economy are primarily on nominal, rather than real, variables.

TL;DR: In this paper, the authors investigated Schinasi's business cycle model, a disequilibrium IS-LM model augmented by a government budget constraint, in the case of pure money financing.

TL;DR: In this paper, the authors analyzed the impact of internal funds on Dutch business investment and found that the impact is relatively strong, and that the importance of organizational ties between banks and firms is very significant.

TL;DR: In this article, the authors evaluated the effect of inflation on the ability of economic agents to operate efficiently in a private enterprise system and found that both the rate of inflation and the change in inflation have significant negative effects on output growth.

TL;DR: In this article, the authors show that large transaction costs associated with international arbitrage provide a barrier to large price signals, which suggests that several emerging-market countries are poorly integrated financially with the industrialized countries.

TL;DR: The authors examined the role of public expenditures on human capital formation using the Becker and Barro (1988) overlapping generations model with endogenous fertility and found that if the government values the welfare of future generations as much as the dynastic head does, the optimal income tax rate for the financing of education is on the order of six to ten percent.

TL;DR: The authors proposed that forecasters may not be irrational, but have been misrepresented by academic economists, and tested the Federal Reserve staff s forecasts for real GNP and for inflation for evidence of the proposed reputation effect.

TL;DR: In this paper, the authors show that there is a response of interest rates to announcements of unexpected changes in the unemployment rate and that the real rate is responding to these announcements in general.

TL;DR: This article used the Backus and Kehoe (1992) data to test the long-run implications of the neoclassical stochastic growth model for Canada, using Johansen's (1988) maximum likelihood approach for estimating and testing long run steady-state relations in multivariate vector autoregressive models.

TL;DR: In this paper, the authors present a simple theoretical model that encompasses both a Federal Funds Rate operating procedure and a Borrowed Reserves operating procedure, and examine a VAR model of the reserve market from February 1984 through April 1990 to ascertain the actual behavior of reserves and interest rates.

TL;DR: The authors used vector autoregressive models of the interwar macroeconomy to evaluate the role of deficits and found that deficits have important second-order effects on output, interest rates, and prices when credit market imperfections are accounted for, and little impact when they are ignored.

TL;DR: This article showed that an eclectic view of the Great Depression dominates monocausal explanations and that much of the depression could have been avoided if money growth had been maintained along its pre-Depression path.

TL;DR: An annual series for U.S. unemployment rates for the period 1869-1899 is estimated in this article, showing that these depressions were much less severe than the Great Depression of the 1930s, but somewhat more severe than depressed periods of the post-World War II years.

TL;DR: In this article, the authors develop and test two models of capital utilization and investment when capital depreciates in use and show that there are restrictions on technology that allow optimality conditions independent of the capital stock to be found.

TL;DR: In this article, the authors present a simple exposition of the main results behind more complicated credit rationing models, using a standard, static model of the banking firm to analyze the effects of changing the interest rate on loans and the probability of repayment.

TL;DR: In this paper, it is shown that the structural estimates are biased towards 0 if private agents internalize the government budget constraint, and evidence is provided for four countries that the reduced-form estimates are consistent.

TL;DR: In this paper, two definitions of price stability have been proposed that encompass the interpretations of the economic literature and explore the degree to which price stability constrains short-term stabilization policy.

TL;DR: In this article, the authors examined the existence of a political monetary cycle that would help incumbents create political business cycles through the use of the g1 coefficient, derived from the underlying behavior of the Federal Reserve in its attempt to choose and employ the optimal policy targets necessary for offsetting unanticipated shocks to the economy.

TL;DR: In this article, a technique developed by Judd to quantify the short-run effects of fiscal policies and income shocks on the current account in a small open economy was used to quantify short run effects of government spending and tax increases.

TL;DR: In this article, a time-varying estimation procedure is employed to parameterize the degree to which the policy rule has changed over time, utilizing proxies for the disturbances which theory and practice suggest are relevant determinants of such variations.

TL;DR: In this paper, the authors introduce the cosine-squared cepstrum to provide evidence that U.S. real GNP has been less volatile since 1973 than it would have been had the fixed exchange rate regime continued.

TL;DR: In this article, the authors provide empirical support for the opposite conclusion in a generalization of Zaleski's approach allowing for instrument costs, showing that there is no clear difference between the political preferences of Republican and Democratic administrations with respect to the choice between unemployment and inflation.

TL;DR: In this article, the authors extend Arrow's analysis on the public investment criterion with tax-distorted capital markets by using an overlapping generations model, which is asserted to be reflected in the opportunity cost and the discount rate for public investment.

TL;DR: In this paper, the authors test a version of the rational expectation permanent income hypothesis model for Malaysia and Singapore, and find that current saving correctly anticipates future changes in income, however, the test results also show that changes in consumption are predictable on the basis of known information.

TL;DR: The authors incorporated intervention, imperfect capital substitution, and sluggish aggregate demand into the Dornbusch (1976) variable-income model and applied the Buiter's (1984) method in solving the model.

TL;DR: In this paper, a methodology of testing for exchange rate bubbles using two sets of variance inequalities is proposed. But the null hypothesis is only used for the second set of inequalities and not for the first one.

TL;DR: In this paper, the authors extended Lucas's (1978) asset pricing model to examine the behavior of equilibrium currency and asset prices in a monetary exchange economy with transactions costs, and analyzed the effects of monetary and real shocks on asset and currency demand functions.