Effects of fiscal policy on the U.S. economy: Empirical estimates of crowding out

This study examines the short-and intermediate-run effects of a permanent reduction in U.S. personal income taxes on interest rates, output, prices, exchange rates, and the current account, holding government spending and money growth fixed. The theoretical analysis suggests that interest rates and domestic consumption will rise but that net exports and interest-sensitive expenditures will fall. Also, the foreign currency value of the dollar will rise except possibly when output increases due to positive supply-side effects or to elimination of unemployment. These theoretical conclusions are essentially confirmed by simulations using the Federal Reserve Board's MPS quarterly econometric model and its multicountry model.     

Planning studies with an optimal control multisectoral dynamic economic model: The case of Sri Lanka

This article investigates the impact of different development scenarios on optimal investment strategy and economy of Sri Lanka and studies the potential of applying control theory techniques to economic planning. The multisectoral dynamic planning model is formulated as a linear quadratic tracking problem. Targets to be tracked define the development strategies: economic growth, trade deficit reduction, food self-sufficiency, and balanced growth. Besides providing insights into these strategies, empirical results show that the difficulty in setting inequality constraints and ensuring nonnegative solutions could undermine the linear tracking optimal control technique for development planning.     

Simulation of a debtor country: The example of Colombia

A dynamic model, illustrated on Colombian data, simulates the functioning of an open economy under specified parametric conditions and selected policy scenarios. Unlike the usual two-sector models, the rate of growth of GDP is generated endogenously. Whereas related models perform sensitivity analysis for variations in parameters our procedure makes n possible to simulate policy alternatives under balance-of-payments pressure. The simulations explore the implications of policy options when debt services on inherited and new foreign indebtedness act as constraints on the debtor's growth, especially when new external borrowing is limited.     

Asset markets and foreign exchange intervention: A model of the Belgo-Luxemburg economic union

In this article a general formulation of government intervention policies in the foreign exchange market is integrated in the framework of an asset market model. The policy reaction function is based on a trade off between exchange rate and reserve stock fluctuations; constant exchange rates and a pure float are derived as limiting cases of the intervention schedule. An exchange rate equation is derived from the short run portfolio equilibrium of the model and is successfully tested using data for the Belgo-Luxemburg Economic Union (1967–1979). Our policy conclusions contrast the European Snake constraints for the Belgian Franc with Artus's findings (IMF Staff Papers XXIII(2), July 1976) for the leading DM.     

A simulation model of infant feeding and family economics in developing countries

Malnutrition is one of the major problems in the Third World. Rooted in mass poverty. It has implications that seriously hamper the ability of poor countries to reach higher standards of living Malnutrition affects the biological development of human beings, which limits intellectual growth and therefore hampers social and economic betterment. At the same time the cultural fabric in many countries has been badly torn, with an increasingly large share of population moving into grossly underemployed and gravely underpriviledged communities within urban areas. This change has altered most traditional life styles: one of its major consequences has been the marked decline in the breast-feeding of infants. The nutrition and welfare of the family affected by new infant feeding practices, not only interact with the household economy, but affect and are affected by social forces and external conditions.This paper presents a model to address these issues and measure the extent by which the above mentioned interaction threatens economic growth and standards of living encouraging a vicious circle of worsening quality of life and declining economic potential. The model is applied to the economy of Malaysia on the basis of statistical information generated by random sampling techniques. The model is designed to provide a simulation mechanism which although bared on expectations and known input conditions takes into consideration random determination events within predetermined probable patterns. The basis of the procedure is a profile of areas occuring within a single family over a span of 10 years.     

Child protection social work and men's abuse of women: an Irish study

This paper reports the findings of an exploratory study of the response of social workers within a community care setting, in a large Dublin suburb, to cases involving men's abuse of women. This research aims to focus on what child protection workers do regarding this abuse, and what they say about what they do, thereby giving readers a sense of the action taking place in this social work team. The data, generated from both qualitative and quantitative methodological research, reflects this aim, as it taps into the working model of responses to men's abuse of women held by social workers, and identifies what influences that, thereby reflecting the realities and constraints of everyday work. At the time the research was carried out (2000), the results confirm that the prevalence of cases involving men's abuse of women on this team was in line with international findings. This research revealed an absence of a team policy, an agreed definition of intimate violence in this context and agency practice guidelines, and illuminated how these gaps act as a deterrent to effective intervention. This paper explores some of the ethical and practical dilemmas that may arise for child protection social workers intervening in cases where the abuse of women by men is present. Recommendations arising from this research identify a need for a clear policy and best practice guidelines for social work staff in relation to this abuse.     

China＇s Energy Strategy Adjustment under Energy Conservation and Carbon Emission Constraints

经济发展和能源需求的阶段性特征、节能减排的基本国策以及气候变暖和温室气体减排的制约,都要求中国能源战略,尤其是能源结构战略,进行相应调整。以往中国的能源战略规划主要是从能源储备和能源生产,即能源供给侧来考虑满足能源需求问题。为了应对气候变化,中国能源结构战略亟待调整：一是要从供给和需求双侧管理来考虑满足能源需求问题,二是要将二氧化碳排放作为满足能源需求的一个约束。建立优化模型,得到反映节能和排放约束下的最优能源结构,进而通过可计算一般均衡模型,评估能源结构变化导致的能源成本增加对宏观经济的影响,结果表明：政府的可再生能源规划对二氧化碳减排具有重要的正面影响,但二氧化碳排放约束改变能源结构导致的能源成本增加,对宏观经济具有一定的负面影响。因为中国许多重要行业对煤炭和火电的依赖程度依然很高,所以,现阶段通过改变能源结构减排的空间不大,应该重视其他方面的节能减排努力。     

Prices in input-output: The INFORUM experience in modeling the U.S. deregulation of domestic oil

Prices, and particularly relative prices, have moved in recent years to the center of our attention. Soaring oil prices, large increases in agricultural prices, and rising costs of product materials and finished goods on world markets have set in motion major changes in the world economy. To model these changes, it has been necessary to use input-output analysis, for our input-output models have the necessary detail to trace these effects. This use of input-output may seem paradoxial to those who, for many years, dismissed this technique because it allegedly fails to take account of the effects of prices. The truth turns out to be almost the reverse: Only input-output can take full account of prices.This paper shows how prices work in the INFORUM model of the American economy. Specifically, it describes how the model generates prices, uses the prices in equations for personal consumption, and changes input-output coefficients on the basis of relative prices. Finally, it compares runs of the entire model to examine the effects in the U.S. of increasing domestic oil prices to world levels.     

国家社会主义市场转型：问题与争议

市场转型研究通常包括四类问题: 各种资本(特别是政治资本和人力资本 ) 的回报率变化、倪志伟之“市场转型理论”的普适性问题、产权结构变化以及转型的最终结局。本文试图厘清上述诸问题研究的基本发展脉络，并着重阐述它们间理论上的关联。在制度转型研究中，凡研究当今中国和东欧市场转型的人员应当注重分析国家在大规模制度变迁中所起的中心作用，并意识到所谓的制度变迁，不仅包括正式制度的改变，也包括非正式限制的变化。     

Constraints and the Measurement of Freedom of Choice

This paper introduces considerations about constraints in the construction of measures of an agent's freedom. It starts with motivating the exercise from both the philosophical and the informational point of view. Then it presents two rankings of opportunity sets based on information about the extent of options and the constraints that a decision maker faces. The first ranking measures freedom as variety of choice; the second as non-restrictedness in choice.     

The determinants of international creditworthiness and their policy implications

The present paper utilizes an empirical measure of creditworthiness based on bankers' perceptions to estimate the effect of various variables hypothesized to influence assessments of countries' debt-servicing capacity. The data pertain to a cross section of countries within the period 1979–1983. Such estimates necessarily employ a ceteris paribus assumption, which prevents a realistic assessment of the effects generated by policy changes. The second part of the paper develops, therefore, a dynamic simulation model of a hypothetical average economy. The simulations allow analysis of changes in macroeconomic variables and creditworthiness over time within a system that maintains accounting identities and behavioral constraints. Several changes in policy variables are considered that highlight the importance of export expansion. The latter is, of course, an often suggested policy objective, but the present paper demonstrates its effectiveness in terms of a somewhat nonstandard criterion.     

Costs and distortion of U.S. regulation policy in intercoastal lumber shipping

This article quantitatively analyzes the various impacts of current U.S. coastal restrictions on the Northwest lumber industry. The history of U.S. maritime regulation is briefly reviewed and a simulation model is developed to measure its affect on lumber shipments and transport costs. The results of the model indicate that aggregate cost redutions obtained through deregulation are likely to be small. The pattern of intercoastal shipments could change a great deal, however, with U.S. producers picking up a large share of the Northeast market.     

Should policymaking account for market expectations? An estimate of their impact on commodity policy

Costs and effects of commodity price stabilization will depend on private price expectations, and these price expectations do respond to changes in public policy. Past empirical studies assumed that price expectations did not incorporate policy constraints on price. The following article examines the implications of correcting this weakness in earlier studies. Substantial differences in estimates of stabilization con result from this improvement in methodology.     

Advances in input-output modeling: A review article

This paper takes the lead from the volume Advances in Input-Output Analysis, edited by K. Polenske and S. Skolka and then proceeds into a state-of-the-art assessment. The volume contains proceedings of the most recent international conference on input-output techniques. Contributions to the volume are appraised in assessing extensions of the input-output approach into the areas of short-run forecasting, regional analysis, environmental problems, income distribution, and dynamic analysis. The integration of the input-output model into more sophisticated economic models is then considered. The required improvements in the specification of the trade sector, the demand side, supply constraints, and technology are discussed.     

Different macroclosures of the original Johansen model and their impact on policy evaluation

It seems necessary to get a better understanding of the economics involved in the rather large and complicated computable general equilibrium models now being implemented in several countries. This paper contributes to the discussion on how the results from such models depend on the choice of closure rule. Within a very general setup, the original Johansen model, the different behaviors of the model are discussed under different closure rules, and the effects of fiscal policy under the alternative closures are quantified by numerical experiments.     

Commodity prices and the world distribution of income

Some advocates of a new international economic order recommend raising prices of commodities exported by developing countries as a means of reducing the inequality of world income distribution. A simulation model using commodity trade data and income distribution data for 68 industrial and developing countries examines this policy alternative. Initial data compilation reveals that internal inequality is as important as international: The world income share of the poorest 40% of people would be twice as high in the absence of intracountry inequality. Calculations using actual price experience in the “great inflation” of 1972–1975 show that despite the large relative price changes for some commodities (especially oil), these changes left the world size distribution of income virtually unchanged. Separate policy simulations show that even a quadrupling of the price of ali “equalizing” commodities (those mainly exported by LDCs) would leave the size distribution of world income practically unaltered (even under optimistic assumptions about intracountry distributional incidence), although some individual LDCs would gain. Increasing commodity prices therefore appears to be an ineffective means of increasing international equity, quite apart from questions about the feasibility of cartels or commodity agreements.     

Social Work Advocacy in Singapore: Some Reflections on the Constraints and Opportunities

One central concern of social work is advocacy for social justice. This is a lofty ideal but a difficult ideal to achieve in view of social work being delivered in sociopolitical contexts with varying degrees of tolerance of advocacy. This discussion is based on a case study from Singapore and considers some of the particular constraints and opportunities in that context, while also making the point that those similar constraints and opportunities exist in all contexts. A model that combines principles of advocacy and collaboration is proposed as a means of embracing social work advocacy in Singapore and other contexts.     

Trade and development in the world economy: Methodological features of Project DYNAMICO

The paper reports on the methodological features and early application of the model underlying the DYNAMICO Projects, which has been developed at the United Nations Secretariat to study the interaction between trade and development. In order to investigate alternative development strategies, scenarios are calculated year by year for the global economy and the ten regions covered in the model.Each year is represented by a block-angular linear programming problem, where the systemwide (or coupling) constraints represent the world market clearance conditions for nine tradable commodities. Each subblock of relations represents the economy of a given region. The Dantzig-Wolfe decomposition method is used to solve the system.Section 2 reviews the specifications of a typical regional subproblem. Each regional subproblem contains the following material balances; labor, land, and capital requirements; investment functions; the most important macroeconomic definitions; and several other restrictions to simulate policy constraints concerning both domestic and external economic activity.Decomposition methods may, in general, be viewed as resource-allocation procedures valuable to capture some of the essential features of decentralized decision-making. In the literature, two classes of such resource-allocation procedures have been proposed: primal (relying on quantity signals), and dual (relying on prices). Section 3 discusses some of the theory underlying the Dantzig-Wolfe method, which is a price-directive one.Section 4 describes in detail the particular solution method implemented in the model. At first, in a prelink phase, each regional subproblem is solved a number of times on the basis of     

Rent seeking and the North-South terms of trade

In this paper results are reported for a series of counterfactual experiments with an eight- region numerical general equilibrium model of world trade, production, and welfare. In these analyses trade restrictions in the developing world are modeled as quantity constrained import licensing, which generates competitive rent-seeking behavior. Model experiments concentrate on the implications of differential factor endowment growth for the North-South terms of trade, and the effects of alternative trade policy changes in developing countries.