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Full-Text Articles in Social and Behavioral Sciences
Robustness, Information-Processing Constraints, And The Current Account In Small Open Economies, Yulei Luo, Jun Nie, Eric R. Young
Robustness, Information-Processing Constraints, And The Current Account In Small Open Economies, Yulei Luo, Jun Nie, Eric R. Young
Yulei Luo
In this paper we examine the effects of two types of “induced uncertainty”, model uncertainty due to robustness (RB) and state uncertainty due to finite information-processing capacity (called rational inattention or RI), on consumption and the current account. We show that the combination of RB and RI improves the model’s predictions for (i) the contemporaneous correlation between the current account and income and (ii) the volatility and persistence of the current account in small open emerging and developed economies. In addition, we show that the two informational frictions improve the model’s ability to match the impulse response of consumption to …
From Usages Of Merchants To Default Rules: Practices Of Trade, Ius Commune And Urban Law In Early Modern Antwerp, Dave De Ruysscher
From Usages Of Merchants To Default Rules: Practices Of Trade, Ius Commune And Urban Law In Early Modern Antwerp, Dave De Ruysscher
Dave De ruysscher
In sixteenth-century Antwerp, commercial contracts were supported with refined government-made rules that brought techniques, usages and customs practised by merchants to the level of sophisticated law. Because no body of unwritten substantive law on commerce existed and because commercial practices were often too rudimentary from a legal perspective, in the 1500s detailed and balanced normative precepts on contracts of trade came to be crafted. When in the first decades of the sixteenth century more and more foreign merchants visited Antwerp, its rulers gradually started supplementing and upgrading practices of merchants to default rules regarding contracts, with materials and concepts drawn …
Reconsidering The Defense-Growth Relationship: Evidence From The Islalmic Republic Of Iran, Bruce D. Mcdonald Iii
Reconsidering The Defense-Growth Relationship: Evidence From The Islalmic Republic Of Iran, Bruce D. Mcdonald Iii
Bruce D. McDonald, III
Recent literature has failed to reach a consensus on how best to model the defense-growth relationship. Although several attempts have been made to solve the problem by the theoretical comparison of models, empirical attempts of comparison have been largely restricted to the United States. Given the recent criticism of the Feder-Ram model, this paper uses Iranian data to compare the performance of the Feder-Ram and augmented Solow models in the context of a growing, yet heavily militarized, economy. The results indicate that the improved ability of the augmented Solow model to explain economic growth can better account for the effects …