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  • 1990-1994  (85)
  • Paris : OECD Publishing  (85)
  • Economics  (85)
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  • 1
    Language: English
    Pages: 44 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.148
    Keywords: Economics
    Abstract: This paper describes a number of alternative medium-term scenarios for the OECD economies and related policy stimulations using the OECD world model INTERLINK. The starting point of the analysis is a reference scenario to 2000 featuring a general recovery of the OECD economies to steady state non-inflationary growth. The paper goes on to examine the implications of slower growth for the paths of fiscal balance and public debt, and the changes in policy mix which might be necessary to restore announced fiscal policy objectives whilst limiting damage to the wider range of policy objectives. A further section goes on to examine the simulated effects of changes of fiscal and monetary policy stance on output, employment, inflation and public debt over the medium term ...
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  • 2
    Language: English
    Pages: 34 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.150
    Keywords: Economics ; New Zealand
    Abstract: In the absence of a generally accepted indicator of monetary conditions the current and expected stance of monetary policy remains undefined. However, the Reserve Bank of New Zealand, by directly surveying perceived and expected monetary conditions, have enabled both a mean index of current and future monetary conditions, as well as a proxy of respondents’ uncertainty, to be generated. The principal determinants and properties of these survey responses are examined in this paper, including whether: central bank announcements dominate economic fundamentals in determining conditions; the responses are consistent over varying time horizons; and the responses are symmetrical to both a tightening and loosening in policy. The determinants of uncertainty regarding the policy-stance are also investigated empirically. The results indicate that: responses to monetary conditions are highly influenced by the recent past; respondents tend to exaggerate the implications of their short-term ...
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  • 3
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 109 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.143
    Keywords: Economics
    Abstract: This document provides a full description of the GREEN model. It is intended to accompany the GREEN code, i.e. the implementation of the model, and to enable the user to understand the links between the theoretical framework of the model and its practical implementation. The document lists all the model equations, provides a data dictionary to link the equation variables with the variables in the code, explains details which are traditionally bypassed in technical papers, and provides an explanation of the data base and the data management part of the code. The document is organised as follows. Following a non-technical overview of the model in Part I, Part II presents the structure of the model with a complete description of the equations, the variables, and parameters which are part of the GREEN model. Part III explains the data management in GREEN ...
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  • 4
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 28 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.151
    Keywords: Economics
    Abstract: This paper provides evidence on the reductions of NOx/SOx emissions induced by the adoption of carbon abatement policies. It describes the methodology to compute emissions of these pollutants and the way they were introduced in the OECD GREEN model. This required a compromise between the “top-down” structure of the model and the very detailed information that, in principle, is required to compute NOx/SOx emissions. The simulation results suggest that, on average, the reductions relative to Baseline levels of NOx/SOx emissions may be in the same order of magnitude or are higher than the abatement imposed on carbon emissions ...
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  • 5
    Language: English
    Pages: 89 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.144
    Keywords: Economics
    Abstract: This paper reviews fiscal policy, government indebtedness and its implications for economic performance in OECD countries. Government debt, expenditure and revenue relative to GDP have all risen significantly over the past 15 years and in several countries these trends are unsustainable. The macroeconomic implications of high fiscal deficits and debt levels are considered and the paper finds that while monetary policy played a clear role in generating recovery, the effects of fiscal policy are more mixed. Looking forward, Member countries’ plans for fiscal consolidation are ambitious, but if sustained economic growth is achieved, these plans are achievable. However, if growth is slower, then further fiscal consolidation efforts would be required to keep public debt under control. Finally, the paper considers ways of improving the control over expenditure and the budget process, so as to achieve better fiscal outcomes ...
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  • 6
    Language: English
    Pages: 47 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.146
    Keywords: Economics
    Abstract: This paper forms part of the second round of the OECD Model Comparison Project on "The costs of cutting carbon emissions". It provides an overview of two global general equilibrium models GREEN and 12RT. The comparison exercise was carried out by means of five policy scenarios and a set of additional controlled experiments. The scenarios focus on alternative forms of joint implementation of international agreements to stabilise CO2 emissions ...
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  • 7
    ISBN: 9789264063525
    Language: English
    Pages: Online-Ressource (264 p.) , ill.
    Series Statement: The Measurement of Scientific and Technological Activities
    Keywords: Science and Technology ; Economics
    Abstract: The Frascati Manual, issued in 1994, is the basic international source of methodology for collecting and using research and development statistics. This fifth edition reflects recent changes in the structure of national science and technology systems and revisions in standard international classifications.
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  • 8
    ISBN: 9789264065574
    Language: English
    Pages: Online-Ressource
    Keywords: Science and Technology ; Economics
    Abstract: Analysts and policy makers have made increasing use of patent indicators to analyse the rate and direction of technological activity. The Patents Manual, issued in 1994, provides information on how patent data can be used as indicators, and also shows how these can be linked to other statistics on science, technology and economic activity (R&D, scientific publications, trade, production, etc.).
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  • 9
    Language: English
    Pages: 72 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.145
    Keywords: Economics
    Abstract: Part I of this paper describes the international sectoral data base, the ISDB, which has been created at the OECD as part of the continuing study of industrial structure and economic performance in OECD Member countries. This data base relates primarily to sectoral output and primary factor inputs used in 14 OECD Member countries. Part II of the paper presents a number of summary statistics derived from the data base for the period 1970 to 1989 related to economic structure and sectoral growth. The second edition of this paper has maintained the structure of the original paper. Changes are mainly in the detailed sources by country and the statistics derived from the data base. ISDB is available on diskettes. An order form is attached at the end of this paper ...
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  • 10
    Language: English
    Pages: 127 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.149
    Keywords: Economics
    Abstract: The paper reviews trends in health-care expenditure and assesses the main forces underlying the increase since 1960. It then describes and evaluates various health-care reforms. The report argues that top-down budget controls appear to have had some success in reducing the growth in health-care spending but, to be sustainable, they need to be supported by microeconomic reforms. Significant improvements in micro-efficiency and effectiveness can be obtained by improving incentives facing health-care providers. Policy developments in a few leading countries suggest that a system where funders/insurers act as purchasers, contracting with competing health-care providers, is a promising model for reform. A statistical annex assesses whether differences in institutional arrangements for funding and providing health care explain international differences in health expenditure ...
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  • 11
    Language: English
    Pages: 77 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.147
    Keywords: Economics ; European Union
    Abstract: This paper summarizes the content of the EC’s internal market programme and progress made in its implementation. It analyses the mechanisms which should lead to welfare gains, and reviews a wide variety of micro- and macroeconomic indicators in order to ascertain whether integration has proceeded since the mid-1980s. Policy issues, which are more or less closely linked to the success of the internal market, are also addressed here ...
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  • 12
    Language: English
    Pages: 61 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.130
    Keywords: Economics
    Abstract: This paper deals with trends and cycles of unemployment and labour-force participation. Empirical evidence on both trends and cyclical movements in unemployment and participation is presented. Some of the mechanisms behind the observed developments are also analysed, examining how well they fit into different theoretical frameworks. The implications for the assessment of labour market slack of the observed interplay between unemployment and participation are discussed. The paper ends by presenting some unexplained puzzles concerning the interplay between trends and cycles of unemployment and participation ...
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  • 13
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 47 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.138
    Keywords: Economics ; France
    Abstract: This paper forms part of an OECD project which addressed the issue of the structure and change in the distribution systems of seven OECD countries. This paper gives an overview of the structure, policy and performance of the French distribution system for the period 1970-90. This analysis is then put into the perspective of international competition. It also draws some recommendations for future policy in this area ...
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  • 14
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 127 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.132
    Keywords: Economics
    Abstract: Unemployment has emerged as one of the most pressing economic concerns in the majority of OECD countries. However, experiences differ across countries as regards the level, volatility and composition of unemployment. Nevertheless, a common feature in many countries is that given levels of wage acceleration, capacity utilisation and vacancy rates are now associated with much higher levels of unemployment than used to be the case two decades ago. Countries seem to differ in the extent to which rising trend unemployment reflects a rise in equilibrium unemployment ("the natural rate") or slow adjustment towards an equilibrium level which is lower than trend unemployment. A number of factors can be pointed to as affecting either equilibrium unemployment or the speed of adjustment in labour markets. Such factors comprise both labour market institutions and policies as well as features that are outside the realm of structural policies. A review of the literature as well as the examination ...
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  • 15
    Language: English
    Pages: 39 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.127
    Keywords: Economics
    Abstract: This paper sheds light on the complex macroeconomic effects initiated by capital income taxation using a dynamic applied general equilibrium model of the U.S. economy. The model considers impacts of policy changes on the allocation of resources across both industries and countries, and over time. Within the model, a given change in capital income taxation abroad affects the domestic economy through capital flows, commodity flows and tax revenue effects. Thus, the model considers the spillovers associated with changes in commodity flows in addition to the usual spillovers generated by capital movements. The simulation results illustrate rather well that personal and corporate income taxation yield very different conclusions in terms of macroeconomic consequences and that it is important to distinguish between short- and long-run policy implications of the two types of capital income tax policies ...
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  • 16
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 49 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.141
    Keywords: Economics ; Sweden
    Abstract: This paper forms part of an OECD project which addressed the issue of the structure and change in the distribution systems of seven OECD countries. The paper gives an overview of the distribution system in Sweden for the period 1970-88. Next, it addresses the question of the static and dynamic efficiency in the distribution sector, as well as its competitive structure. The latter aspect is illustrated by a set of market structure indicators ...
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  • 17
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 63 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.131
    Keywords: Economics
    Abstract: Starting from the theoretical argument underlying the “hump shape” hypothesis, the paper investigates the various dimensions of centralisation in the wage formation process. The diversity of effects discussed in the paper makes it harder to arrive at unambiguous policy conclusions. Careful analysis of the various features and economy-wide direct as well as indirect effect of the degree of centralisation in the wage formation process suggests that there exists various trade-offs, the most important of which appears to be that between real wage restraint and relative wage flexibility: centralisation favours the former but reduces the latter. This suggests that its effect on macroeconomic performance depends on the type of shocks affecting the economy ...
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  • 18
    Language: English
    Pages: 56 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.126
    Keywords: Economics
    Abstract: This paper first gives a brief account of the main changes introduced by OECD governments in their capital income tax rules during the 1980s with respect to both the corporate and personal sectors. It then examines the evolution of effective capital taxation, using a summary measure ("tax wedges") which takes into account the different nature of national tax systems. Finally, the paper discusses the future of capital income taxation in an environment of increasing international capital mobility ...
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  • 19
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 35 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.128
    Keywords: Economics
    Abstract: Despite the increased capital mobility that has accompanied the trend towards liberalisation and international integration of financial markets, differences remain in financing costs and, in particular, the cost of capital, that similar businesses face in different countries. These differences have attracted considerable attention as important factors influencing international investment and productivity growth. A number of reviewed empirical studies suggest that Japan and Germany enjoyed a considerable advantage with regard to the cost of equity and, more broadly, the cost of capital compared to the United States and the United Kingdom in the 1980s. This was due to higher leverage, a much lower cost of equity in Japan and a lower cost of German firms' debt to banks. Many studies have argued that closer bank-customer relationships, and more stable prices and growth rates in Japan and Germany have tended to lower their cost of capital. More recent studies which cover the period ...
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  • 20
    Language: English
    Pages: 57 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.129
    Keywords: Economics
    Abstract: This paper uses a multivariate generalisation of the Beveridge and Nelson methodology to model trends and cycles of business-sector labour productivity in the major OECD countries. The method implies that the trend is the long-term forecast of productivity, given all available information; the cycle is thus interpreted as the total excess growth that one would forecast beyond "normal" rates of productivity (see Evans and Reichlin, 1992). Multivariate trends in productivity were estimated including series that Granger-cause and, possibly, are cointegrated with productivity. The corresponding cycles were compared with those generated by the Hodrick-Prescott filter and with the business-cycle dating of the OECD. The stability and predictive properties of the Beveridge-Nelson and Hodrick-Prescott trends were compared. Finally, the estimated productivity gaps were used as proxies for capacity utilisation in econometric models of price formation in order to assess their empirical ...
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  • 21
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 78 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.136
    Keywords: Economics ; Japan
    Abstract: This paper forms part of an OECD project which addressed the issue of the structure and change in the distribution systems of seven OECD countries. The paper gives an overview of the structure of the Japanese distribution system and discusses its economic performance, both on the grounds of efficiency and market access. Next, a detailed analysis of the Japanese distribution sector is carried out, on the basis of which policy recommendations are drawn ...
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  • 22
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 119 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.140
    Keywords: Economics ; United Kingdom
    Abstract: This paper forms part of an OECD project which addressed the issue of the structure and change in the distribution systems of seven OECD countries. The paper gives a comprehensive view of the distribution system in the United Kingdom. Namely, it assesses the contribution of this sector to the overall economy and gives a set of market structure indicators. The public policy issues related to the distribution system are also discussed ...
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  • 23
    Language: English
    Pages: 78 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.133
    Keywords: Economics
    Abstract: Institutional questions have become increasingly prominent in the evaluation of nearly every area of structural policy. The present article shows how formal economic analysis may be brought to bear on the problem of understanding institutions. It begins by reviewing the recent history of thought on the economics of organisations. It then outlines the fundamentals of transactions cost economics, a branch of economic theory which views organisations as a response to competitive pressures to align different ways of channelling or "governing" a transaction -- these governance forms include market, hybrid or hierarchy -- with the transactions requirements of different economic sectors. The paper then demonstrates the applicability of this theory, which represents a significant departure from the neo-classical theory of the firm, in such diverse areas as intermediate product markets, corporate finance and governance, the modern corporation, regulation and deregulation and the failure of ...
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  • 24
    Online Resource
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    Paris : OECD Publishing
    Language: English
    Pages: 71 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.142
    Keywords: Economics
    Abstract: This paper forms part of on-going OECD work on the economic assessment of public pension systems in view of the process of the ageing of populations. It provides indicative estimates of the likely size of public pension liabilities in the main seven economies based on simplifying assumptions, and analyses various methods of financing these liabilities. The methodology developed here is based on the so-called generational accounts approach. Such accounts indicate in present-value terms the lifetime financial burden government programmes impose on present and future generations. Up to now, the methodology has been used to estimate public pension liabilities in France and Belgium, in the framework of the 1993 OECD Economic Surveys for those countries ...
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  • 25
    Online Resource
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    Paris : OECD Publishing
    Language: English
    Pages: 76 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.139
    Keywords: Economics ; Italy
    Abstract: This paper forms part of an OECD project which addressed the issue of the structure and change in the distribution systems of seven OECD countries. The paper discusses the role of distribution systems in the Italian economy and gives an overview of the transformation of the Italian distribution system in the 1970s and 1980s. In particular, it analyses the effects of the Law 426/71 on the evolution of the retail sector. Finally, it addresses the questions of structure and performance of the distribution system and their implications for welfare and competition ...
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  • 26
    Online Resource
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    Paris : OECD Publishing
    Language: English
    Pages: 78 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.135
    Keywords: Economics ; United States
    Abstract: This paper forms part of an OECD project which addressed the issue of the structure and change in the distribution systems of seven OECD countries. The paper begins with a conceptual framework describing the functions, market outcomes and economic implications of the distribution sector. Next, it gives an overview of the U.S. distribution system in the 1980s. In particular, it discusses some specific characteristics underlying the functioning of the U.S. distribution system. Finally, it assesses the efficiency question and its implications for foreign trade. Some policy recommendations are then drawn on that basis ...
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  • 27
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 44 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.134
    Keywords: Economics
    Abstract: This paper investigates the link between trade flows and relative wages on a cross-section of 22 sectors in 12 OECD countries. Industries are classified according to stylised facts about market structure (fragmentation, segmentation and degree of product differentiation). Next, the import penetration trends during the period 1970-90 are analysed, with special attention paid to the imports from Asian NICs. Finally, panel data estimates of a relative wage equation, encompassing both the characterisation of industries by type of market structure, as well as import penetration and export-intensity variables, are carried out. The results show that the impact of import penetration on relative wages tends to be negative in industries with low product differentiation, whereas the reverse result occurs in industries with high product differentiation and market segmentation ...
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  • 28
    Online Resource
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    Paris : OECD Publishing
    Language: English
    Pages: 139 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.137
    Keywords: Economics ; Germany
    Abstract: This paper forms part of an OECD project which addressed the issue of the structure and change in the distribution systems of seven OECD countries. First, the paper discusses the role of distribution systems in the overall economic performance. Next, it gives an overview of the structure and evolution of the distribution system in West Germany for the period 1970-1988. Finally, it analyses the impact of competition laws and other regulations on the distribution of consumer goods ...
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  • 29
    Online Resource
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    Paris : OECD Publishing
    Language: English
    Pages: 36 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.114
    Keywords: Economics
    Abstract: This paper forms part of an OECD project which addresses the issue of the costs of reducing CO2 emissions by comparing the results from six global models of a set of standardised reduction scenarios. The IEA model is an econometric energy model with a projection horizon to 2005. One of the major conclusions to emerge from the results presented in this paper is that even seemingly moderate CO2 emissions reduction targets would require very high carbon taxes. The reasons for this are, firstly, that the carbon taxes need to be very high to have any material impact on final prices, especially those of transportation fuels and electricity, and, secondly, that most of the decline in emissions would have to come from a reduction in energy demand because the scope for substitution is very limited over a period of 10-15 years. The model also suggests that the required carbon taxes for any target are likely to be much lower in North America than in the Other OECD region, because North ...
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  • 30
    Language: English
    Pages: 32 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.112
    Keywords: Economics
    Abstract: This paper forms part of an OECD project which addresses the issue of the cost of reducing CO2 emissions by comparing the results from six global models of a set of standardised reduction scenarios. The project provides evidence on: i)projected carbon dioxide emissions through the next century, and ii) the carbon taxes and output costs entailed in reducing these emissions ...
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  • 31
    Language: English
    Pages: 91 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.117
    Keywords: Economics ; Euro Area
    Abstract: The increasing, and ultimately complete, fixity of exchange rates between countries entering into the European Monetary Union (EMU) throws the burden of adjustment onto labour and product markets. At present, most countries adhering to the exchange rate mechanism of the EMS have relatively rigid labour markets, implying that, in the absence of structural reform, some countries may experience higher unemployment in moving towards the low inflation rates and modest deficit levels that are prerequisites for entering EMU. Given the limited availability of macroeconomic tools, some pressures to discriminate against imports from non-EC countries may emerge. Even after EMU, remaining differences in industrial and trading structures as well as in the supply and demand shocks experienced by individual Member countries will impose some need for localised adjustment. The relative wage and price changes involved in such adjustments may have disruptive effects on income and employment if labour ...
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  • 32
    Language: English
    Pages: 37 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.121
    Keywords: Economics
    Abstract: This paper forms part of an OECD project which addresses the issue of the costs of reducing CO2 emissions by comparing the results from six global models of a set of standardised reduction scenarios. The paper provides evidence on; i) projected carbon dioxide emissions through the next century, and ii) the carbon taxes and output costs entailed in reducing these emissions ...
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  • 33
    Language: English
    Pages: 51 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.120
    Parallel Title: Parallelausg. Les indicateurs de compétitivité et de commerce internationaux de l'OCDE
    Keywords: Economics
    Abstract: This paper presents the methodology adopted by the Economics Department to calculate indices of effective exchange rates and indicators of competitiveness, based on unit labour costs and export unit values in the manufacturing sector. The calculation derives from a double-weighting system which first measures competition among all competitors of a given country on each of its markets, this competition being then weighted according to the relative importance of each of the markets of the country in question. These indicators are generally used to analyse trends in trade variables. In this paper, indicators of export market growth and export performance are also calculated and compared with the export competitiveness indicators ...
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  • 34
    Language: English
    Pages: 50 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.113
    Keywords: Economics
    Abstract: This paper forms part of an OECD project which addresses the issue of the costs of reducing CO2 emissions by comparing the results from six global models of a set of standardised reduction scenarios. The Edmonds-Reilly Model was modified and run iteratively against several standardised scenarios for comparison with the results of the other models. This paper describes the model modifications required, as well as the results of the various modelling runs ...
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  • 35
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    Paris : OECD Publishing
    Language: English
    Pages: 74 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.122
    Keywords: Economics
    Abstract: This paper summarises and analyses results of the OECD's Model Comparisons Project. The aim of the project is to better understand differences across six global models in the cost of reducing carbon dioxide emissions. In order to facilitate comparisons, key assumptions and reduction targets have been standardised. The paper provides evidence on; i) projected carbon dioxide emissions through the next century, and ii) the carbon taxes and output costs entailed in reducing these emissions ...
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  • 36
    Language: English
    Pages: 57 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.123
    Keywords: Economics
    Abstract: This paper surveys empirical studies of the costs of reducing carbon dioxide emissions. It updates and extends an earlier paper, which focused on baseline emission scenarios and the aggregate cost of emission reductions. It attempts to explain some of the differences in simulation results and highlights some major policy issues ...
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  • 37
    Language: English
    Pages: 119 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.116
    Keywords: Economics
    Abstract: The OECD Secretariat has developed a multi-region, multi-sector, dynamic applied general equilibrium (AGE) model to quantify the economy-wide and global costs of policies to curb emissions of carbon dioxide (CO2). The project is called the GeneRal Equilibrium ENvironment model, hereafter referred to as GREEN. The purpose of this paper is to provide a full technical description of the GREEN model, its data base and parametrisation as of April 1992. It replaces the previous version of the GREEN Technical Manual which was issued in June 1991 as Working Paper No. 104 ...
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  • 38
    Language: English
    Pages: 79 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.115
    Keywords: Economics
    Abstract: This paper presents simulation results using the OECD Secretariat's GREEN model to quantify the economic costs of possible international agreements to curb CO2 emissions. These results supersede the initial GREEN results published in Working Paper no. 103 in June 1991. The first section of the paper summarises the analysis and draws some conclusions for policy. Section II of the paper reviews the so-called Business-as-Usual scenario and presents some sensitivity analysis around it. Section III considers international agreements under which emission curbs are only applied by the OECD countries or the EC and no actions are taken by the non-OECD regions. Particular attention is paid to the possibility that unilateral action by the OECD countries might give rise to so-called "carbon leakages", i.e. higher emissions in the non-OECD regions. Section IV extends the coverage of the international agreements to embrace the non-OECD countries. It quantifies the gains from cost-effective ...
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  • 39
    Language: English
    Pages: 30 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.109
    Keywords: Economics
    Abstract: This paper examines whether information asymmetries and agency costs vary across OECD countries depending on the nature of their financial system. It does this by examining whether the predictive power of the spread between yields on private and government securities (which, it has been argued, reflects such factors) varies across countries. The results indicate that the information content of the spread is highest in those countries with market-based financial systems ...
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  • 40
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    Paris : OECD Publishing
    Language: English
    Pages: 30 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.111
    Keywords: Economics
    Abstract: This paper forms part of an OECD project which addresses the issue of the cost of reducing CO2 emissions by comparing the results from six global models of a set of standardised reduction scenarios. The project provides evidence on: i)projected carbon dioxide emissions through the next century, and ii) the carbon taxes and output costs entailed in reducing these emissions ...
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  • 41
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 45 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.108
    Keywords: Economics
    Abstract: This paper examines the future of capital income taxation in a world of capital mobility. It first explores the motivation for personal and corporate income taxation in an open economy and argues that policymakers should view these taxes as having quite different impacts on the economy. The paper then suggests that some forces (e.g. capital flight) will encourage governments to shift away from capital income taxation while others (e.g. tax exportation) will have the opposite effect ...
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  • 42
    Language: English
    Pages: 38 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.110
    Keywords: Economics
    Abstract: In response to the potential threat of global warming many countries are considering cost effective policies to reduce greenhouse gas emissions. In this context much attention has been paid to taxes levied on the carbon content of fuels (carbon taxes), since they are a potentially efficient economic instrument for reducing emissions of CO2, the main greenhouse gas. This paper first reviews the existing structure of fossil fuel prices and taxes and the relationship between energy prices and carbon emissions. It then analyses the economic cost of superimposing carbon taxes on top of current energy taxes. Finally, using a simple energy demand system, tax reform proposals are simulated including restructuring present energy taxation by the average implicit carbon tax and a carbon cum energy tax similar to the EC proposal ...
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  • 43
    Language: French
    Pages: 61 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.120
    Parallel Title: Parallelausg. OECD's Indicators of International Trade and Competitiveness
    Keywords: Economics
    Abstract: This paper presents the methodology adopted by the Economics Department to calculate indices of effective exchange rates and indicators of competitiveness, based on unit labour costs and export unit values in the manufacturing sector. The calculation derives from a double-weighting system which first measures competition among all competitors of a given country on each of its markets, this competition being then weighted according to the relative importance of each of the markets of the country in question. These indicators are generally used to analyse trends in trade variables. In this paper, indicators of export market growth and export performance are also calculated and compared with the export competitiveness indicators ...
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  • 44
    Language: English
    Pages: 47 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.124
    Keywords: Economics ; China, People’s Republic
    Abstract: This paper describes the de facto economic integration taking place between China, Hong Kong and Taiwan -- the "Chinese Economic Area" -- and analyses basic factors underlying the process. Even in the face of weak economic performance in OECD countries the integration has helped underpin rapid growth in all three economies, particularly in China's south-eastern provinces. If Chinese policies are further liberalised within a reasonably stable macro-environment, the Chinese Economic Area could become a major player in world markets within one generation and require massive adjustment in the rest of the world ...
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  • 45
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 38 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.125
    Keywords: Economics
    Abstract: The aim of this paper is to analyse the implications of the European Commission proposal of a mixed energy cum carbon tax to curb CO2 emissions from a global perspective. The paper deals with the effects of this proposal on emissions and welfare in both the EC and the rest of the world by concentrating on three main issues: i) the effectiveness of the proposed tax measures in terms of curbing EC and global CO2 emissions; ii) the implied costs for the EC and the other countries/regions of the world; and iii) the implications of the EC proposal for the world distribution of emissions and the competitiveness of the EC economy. In this connection, the relevance of the so-called "carbon leakages" -- i.e. the displacement of polluting activities from countries participating in an emission reduction agreement to countries not concerned by the agreement -- is examined. The paper provides quantitative answers to these issues using simulations with GREEN, the global dynamic applied general ...
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  • 46
    Language: English
    Pages: 61 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.118
    Keywords: Economics
    Abstract: This paper forms part of an OECD project which addresses the issue of the costs of reducing CO2 emissions by comparing the results from six global models of a set of standardised scenarios. This paper provides evidence of regional differences with respect to carbon tax curves through the middle of the next century. It also develops some analytical tools that can help to explain the main mechanisms at work in GREEN. Finally, it evaluates the welfare and output costs entailed in reduction emissions ...
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  • 47
    Language: English
    Pages: 60 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.107
    Keywords: Economics
    Abstract: This paper examines the recent slowdown in bank lending that has affected several large OECD countries. The analysis begins with a description of the importance of bank credit in the financial systems of the countries considered. The origins of the lending slowdown are analysed - - including the importance of deteriorating bank balance sheets and the BIS capital rules - - as well as its potential to depress economic activity. The paper concludes with a discussion of how monetary policy should react to unusually sluggish bank lending ...
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  • 48
    Language: English
    Pages: 92 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.90
    Keywords: Economics
    Abstract: Since the early 1980s, most OECD countries have embarked on medium-term strategies to restore greater balance to the public finances and to wind back government intervention in the economy. The attached paper examines the progress so far. It also reviews and evaluates some of the changes to public sector management practices which were implemented in the 1980s and assesses some of the pressures on the public sector which are likely to arise in the 1990s. Most OECD governments appear to have made significant headway in budgetary consolidation, particularly in the second half of the last decade, and public expenditure as a share of GDP has stabilised for the area as a whole, once allowance is made for cyclical effects. There has also been some measure of success in reducing economic regulation in a number of sectors. Nonetheless, governments are likely to face increased spending pressures in the 1990s, partly reflecting catch-up following expenditure restraint in the 1980s. Improving ...
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  • 49
    Online Resource
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    Paris : OECD Publishing
    Language: English
    Pages: 36 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.106
    Keywords: Economics
    Abstract: Taxes levied on the carbon content of fuels (carbon taxes) are being considered in many OECD countries as a possible policy instrument to reduce carbon dioxide emissions. This paper first reviews the policy response in Member countries to the threat of global warming. It then discusses the link between carbon emission intensities and current energy prices, touching also on the relative price effects of current energy policies and the implicit carbon taxes reflected in present energy taxation for different fuels. Finally, the likely size of carbon taxes and associated tax revenue is illustrated by simulations of OECD's GREEN model for equiproportionate emission cuts and a global permit trading system ...
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  • 50
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 50 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.105
    Keywords: Economics
    Abstract: Saving has attracted increasing attention in recent years. Research has focused on questions about its adequacy, determinants and measurement. This paper considers the latter issue. The main trends in world-wide and OECD-area saving over the last two to three decades are reviewed. Subsequently, the appropriateness of the saving concept used in traditional national accounts is discussed. To examine the size of some of the potential problems, a number of adjustments to traditionally measured saving are made. The concluding section raises some questions about appropriate measurement of saving, saving behaviour and policy responses to perceived lack of saving ...
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  • 51
    ISBN: 9789264164451
    Language: French
    Pages: Online-Ressource
    Parallel Title: Parallelausg. OECD Economic Surveys; Czech and Slovak Federal Republic 1991
    Parallel Title: Parallelausg. OECD Economic Surveys: Czech and Slovak Federal Republic 1991
    Keywords: Economics ; Slovak Republic
    Abstract: L’édition 1991 de l'Étude économique consacrée à la République fédérative tchèque et slovaque examine l'historique et la situation au début de la réforme, l'évolution et la politique macro-économique, la réforme structurelle, l'intégration à l'économie mondiale et les marchés financiers.
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  • 52
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 44 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.92
    Keywords: Economics
    Abstract: The rise in European unemployment has inspired much new research on the causes and mechanisms of unemployment, analogous to the interest devoted to unemployment in the 1930s. The new research has to a large extent focused on wage-setting behaviour, as is revealed by the rapid growth of theoretical and empirical work on models of wage bargaining, insider-outsider relationships, and efficiency wages. A common theme in this new work is a desire to provide satisfactory microeconomic foundations for the existence and persistence of involuntary unemployment. This paper offers a survey of recent research on unemployment persistence and insider-outsider forces in wage determination. It begins in Section II with an overview of major themes in the theoretical work on unemployment. Section III reviews results from a number of recent empirical studies inspired by these new theories. Section IV concludes with a discussion of directions for future research ...
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  • 53
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 31 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.102
    Keywords: Economics
    Abstract: The paper reviews some key characteristics of the recoveries experienced by the seven major OECD countries in the 1970s and 1980s. It presents data on the cyclical evolution of demand components, fiscal and monetary variables, labour market and inflation around cyclical troughs. A final section sketches the main features of the recovery which is envisaged in the latest OECD projections, presented in Economic Outlook No 49, and compares them with those of earlier periods ...
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  • 54
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 40 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.95
    Keywords: Economics
    Abstract: This paper is one of four in this Working Paper Series, focusing on financial liberalisation, along with those of Kupiec, Driscoll and Blundell-Wignall and Browne. It surveys recent work, both theoretical and empirical, on the question of market efficiency in various asset markets. A number of studies of behaviour in the foreign exchange market, which provide evidence of departures from efficiency, are described. The paper summarises and discusses the implications of research on the effects of noise trading by "irrational" groups of agents, with particular reference to the stock market. The housing market is also considered as an example where pronounced price "bubbles" have appeared. The paper concludes with a discussion of the potential welfare impact of departures from efficiency in the foreign exchange market, where it is argued that the case for some form of intervention is strongest ...
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  • 55
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 78 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.100
    Keywords: Economics
    Abstract: The rapid increase -- over the next thirty years -- in the population share of persons above retirement age has led to a steady increase in attention paid by OECD Governments to questions concerning old age income maintenance. The attached paper looks at the proper role the Government can play in the provision of income for the elderly. The analysis starts with a discussion of the outcomes that can be expected under private contracting, in the absence of any specific Government intervention. Equity and efficiency concerns with these outcomes are identified, and the paper then examines how alternative forms of Government intervention, including comprehensive public old age pension schemes, can potentially improve on these outcomes. Explicit consideration is given to limitations on Governments' ability to achieve desired goals, as well as market distortions introduced by Government intervention ...
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  • 56
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 47 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.97
    Keywords: Economics
    Abstract: This paper is one of four in this Working Paper Series, focusing on financial liberalisation, along with those of Miller and Weller, Kupiec and Blundell-Wignall and Browne. Its main purpose is to evaluate the imperfections still affecting deregulated credit markets. In particular, the paper examines the extent to which rationing continues to be present in credit markets and its implications for credit allocation and the transmission of monetary policy. In addition, the role of deregulation in financial market fragility and instability and its macroeconomic consequences are discussed ...
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  • 57
    Language: English
    Pages: 57 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.103
    Keywords: Economics
    Abstract: The OECD Secretariat has developed a multi-region, multi-sector. dynamic general equilibrium model to quantify the economy-wide and global costs of policies to curb emissions of carbon dioxide (CO2). The project is called the GeneRal Equilibrium ENvironmental model, hereafter referred to as GREEN. The purpose of this paper is to outline the main features of GREEN in a non-technical fashion and to present some preliminary results from three scenarios of alternative international agreements to cut CO2 emissions. The paper also sets out a range of options for possible extensions to the model, with the explicit aim of improving its policy relevance ...
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  • 58
    Language: English
    Pages: 67 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.98
    Keywords: Economics
    Abstract: This paper brings together a number of interrelated issues concerning the implications of financial liberalisation for macroeconomic outcomes. Deregulation has tended to reduce the importance of liquidity constraints within and between countries, while at the same time giving markets a much greater role in utilising available information to achieve efficient outcomes. This has had implications for private spending behaviour and the transmission channels of monetary policy; for the volatility of financial prices; for the price and credit risks which arise; and for the integration of international financial markets and the process of external adjustment ...
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  • 59
    ISBN: 9789264164444
    Language: English
    Pages: Online-Ressource (153 p.)
    Parallel Title: Parallelausg. Études économiques de l'OCDE ; République fédérative tchèque et slovaque 1991
    Parallel Title: Parallelausg. Études économiques de l'OCDE : République fédérative tchèque et slovaque 1991
    Keywords: Economics ; Slovak Republic
    Abstract: OECD's 1991 Economic Survey of the Czech and Slovak Federal Republic examines historical background and conditions at the start of reform, macroeconomic developments and policies, structural reform, integration into the world economy and financial markets.
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  • 60
    Language: English
    Pages: 61 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.94
    Keywords: Economics
    Abstract: This paper is one of four in this Working Paper series, focusing on financial liberalisation, along with those by Miller and Weller, Driscoll, and Blundell-Wignall and Browne. It examines the historical volatilities of stock, bond and foreign currency markets over alternative periods differing roughly by the degree of financial innovation and globalisation. It characterises trends in gross volatility, and the degree and manner in which volatility in financial markets has changed, the real economic consequences of transitory periods of excess volatility, and discusses some of the financial policies proposed to limit volatility. The results suggest that the past two decades have coincided with a world-wide increase in the average levels of volatility in stock returns, corporate bond yields and exchange rates, accompanied by a general increase in the strength of the positive correlations among national stock returns and the conditional volatilities of these returns. Evidence suggests ...
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  • 61
    Online Resource
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    Paris : OECD Publishing
    Language: English
    Pages: 29 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.91
    Keywords: Economics
    Abstract: A recent study by David Aschauer suggested a novel explanation for the slowdown of private-sector total factor productivity (TFP) in the United States in the early 1970s. He argues that it is due to the roughly contemporaneous slowdown in the rate of investment in public-sector infrastructure. Using data for eleven OECD countries, this note provides only mixed support for Aschauer's hypothesis. With series starting in the 1960s for most countries, regression analysis found a significant effect of infrastructure on TFP in about half the countries. A longer-term perspective was also examined for the United States. On the basis of data going back to the end of the 19th century, it appears that there was no relationship between infrastructure and TFP until after World War II ...
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  • 62
    Language: English
    Pages: 68 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.96
    Keywords: Economics
    Abstract: This paper is one of four in this Working Paper Series, focusing on financial liberalisation, along with those of Kupiec, Miller and Weller, and Driscoll. It examines the extent to which international financial markets have become more integrated over the past decade. The finding that financial markets are almost fully integrated, in contrast to goods markets which are not, has important implications for real interest rate differentials, real exchange rate behaviour and external adjustment. In particular, the reduced importance of external imbalance and the increased role of real interest rates in real exchange rate determination can be associated with more prolonged misalignments ...
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  • 63
    Language: English
    Pages: 103 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.104
    Keywords: Economics
    Abstract: The OECD Secretariat has developed a multi-region, multi-sector, dynamic applied general equilibrium (AGE) model to quantify the economy-wide and global costs of policies to curb emissions of carbon dioxide (CO2). The project is called the GeneRal Equilibrium ENvironments model, hereafter referred to as GREEN. The purpose of this paper is to provide a full technical description of the GREEN model, its data base and parametrisation as of May 1991. Work is continuing to extend GREEN in several different directions to make the model more policy relevant, and a revised version of the technical manual will be issued in due course ...
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  • 64
    Language: English
    Pages: 70 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.99
    Keywords: Economics
    Abstract: This paper describes a Business Sector Data Base (BSDB) for OECD countries constructed in the context of recent work of the OECD Economics and Statistics Department. It discusses many of the problems of consistency between the usual sources of economic statistics for each of the concepts used and describes the choices made to construct a consistent data base. In two important areas where major problems arise, namely the treatment of capital stock and energy, it has been necessary to construct a number of new estimates. The resulting data base is available on PC diskette to the general public on a subscription basis ...
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  • 65
    Language: English
    Pages: 56 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.93
    Keywords: Economics
    Abstract: During the 1980s, following the Mexican payments crisis of August 1982, a number of debt "plans" and "strategies" have been introduced, but overall progress in resolving the situation has been slow. This paper results from a project to investigate the relationship between macroeconomic developments in OECD countries and those in debtor countries. The aim is to develop tools that can help to throw light on the importance of international linkages, including those between OECD and debtor countries, in order to understand better why many of the hopes and expectations of the various debt plans have not been realised. This paper presents a set of models for Latin America (DEMOD) that can be used to analyze the impact of the world macroeconomy on the economies of Latin America; these have been designed to focus in particular on growth and debt servicing capacity and to trace the development of creditworthiness indicators. In addition, debt accounting models for the highly indebted ...
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  • 66
    Language: English
    Pages: 41 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.81
    Keywords: Economics
    Abstract: The paper addresses the question of whether financial liberalisation and innovation has significantly altered consumption behaviour by reducing liquidity constraints as capital markets become more flexible. A consumption model in which the permanent income hypothesis and extreme Keynesian consumption functions are nested as special cases is the starting point for this analysis. Estimated values for the sensitivity of consumption to current income for different time periods and for several OECD countries are assessed and compared in the light of various econometric properties, country specific liberalisation measures and a variety of proxies reflecting changing liquidity constraints ...
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  • 67
    Online Resource
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    Paris : OECD Publishing
    Language: English
    Pages: 41 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.101
    Keywords: Economics
    Abstract: The P-star approach has been developed by the U.S. Federal Reserve as a new indicator of inflationary pressures. This paper assesses its usefulness for 20 OECD Member countries. Regression results are presented and in-sample tracking ability and forecasting performance of the equations are compared to rival inflation models and official OECD projections ...
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  • 68
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 83 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.74
    Keywords: Economics
    Abstract: Subsidisation of industrial activities distorts the allocation of scarce resources, is a burden on government finances and generates friction in international trade. This paper draws on a wide range of data sources to examine industrial subsidisation in OECD countries. The sectoral distribution of subsidies and the relative importance of the different instruments of subsidisation are highlighted. The final section of the paper evaluates, to the extent possible, the economic effects of subsidy policy ...
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  • 69
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 29 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.80
    Keywords: Economics
    Abstract: This paper is one of three in this Working Paper Series, along with those by Chouraqui et al. and Blanchard, in which the assessment of fiscal policy is reconsidered. It reviews the question of what type of budget indicators the OECD should compile. Instead of the cyclically-adjusted budget, it argues for compiling several indicators to indicate fiscal performance on several dimensions. One measure based entirely on identities can describe the debt-stabilisation gap, one can describe discretionary fiscal policy change, and one can describe the fiscal impact of the budget. Several sources of confusion can be cleared up with this multi-indicator approach: at the same time there will be the costs of explaining what indicator should be used for what purpose ...
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  • 70
    Language: English
    Pages: 78 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.82
    Keywords: Economics
    Abstract: Concerns over the pace, scope and causes of environmental degradation have led to a renewed interest in the way environmental and economic policies interact. This paper first reviews the main causes for excessive use of environmental resources in a market economy, and how governments may conduct policies to counter environmental degradation. The focus of the paper then shifts towards the implications of economic growth on overall wealth and the possibilities for preserving or expanding the basis of this wealth, particularly in relation to the notion of sustainable development. Finally, it examines policy options for limiting global environmental problems such as climate change, in particular as regards the trade-offs involved in curbing the use of fossil fuels ...
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  • 71
    ISBN: 9789264065567
    Language: English
    Pages: Online-Ressource
    Keywords: Science and Technology ; Economics
    Abstract: The TBP Manual, issued in 1990, serves as a standard method for surveys and data collection for trade in disembodied technology between countries which continue to be difficult to compare because of differences in coverage and in the grouping of categories of data. It also makes a contribution to the methodological work forming part of the indicators framework of the Technology-Economy Programme (TEP).
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  • 72
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 72 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.85
    Keywords: Economics
    Abstract: This paper reviews the influence of a variety of different monetary rules for the G3 economies on the comparative simulation properties of a recent version of the OECD INTERLINK model. The simulated shocks are typically of a "global" nature, with the main objective being to assess the relative effectiveness of alternative monetary policy settings in achieving a stable set of outcomes for main macroeconomic aggregates at the global level. Since the relative performance of different policies seems likely to depend on both the nature of the shocks and specific structural features of the model used, it also examines the extent to which these results are likely to be empirically fragile ...
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  • 73
    Language: English
    Pages: 56 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.83
    Keywords: Economics ; Australia ; New Zealand
    Abstract: The paper examines the desirability of exchange rate management in a commodity-exporting country, in which the terms of trade are driven by the world commodity price cycle. When the authorities are assumed to pursue an inflation objective, the usefulness of managing the rate depends on the relative importance of monetary versus terms of trade shocks. Empirical evidence suggests that floating rate regimes will normally be preferred for countries like Australia and New Zealand, although circumstances can be envisaged in which either leaning-against-the-wind or leaning-with-the-wind policies are required. A review of experience since the Korean War boom suggests that attempts to fix the exchange rate in the face of the commodity cycle are likely to be associated with inflation problems, while labour market asymmetries can lead to resource misallocation and to pressures for the protection of the non-commodity traded goods sector ...
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  • 74
    Language: English
    Pages: 59 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.77
    Keywords: Economics
    Abstract: The paper examines evidence concerning the impact of financial liberalisation and innovation on monetary policy. The indicator value of monetary aggregates and the role of liquidity constraints in the transmission mechanism affecting aggregate demand are examined. Countries where financial liberalisation has led to problems with the role of monetary aggregates in general also display evidence of a reduced role for liquidity constraints in aggregate demand behaviour. The ability of the authorities to influence market-determined interest rates, a key aspect of monetary transmission in markets where liquidity constraints are not binding, is also examined ...
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  • 75
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 37 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.79
    Keywords: Economics
    Abstract: There are four sets of questions that fiscal indicators can help answer: (1) Of the changes in the fiscal position, what part is due to changes in the economic environment and what part is due to policy? (2) Can the current course of fiscal policy be sustained, or will the government have to adjust taxes or spending? (3) What is the effect of fiscal policy on activity, through its effects on relative prices, be it the price of labour or the price of capital? (4) What is the macroeconomic impact of fiscal policy, through deficit and debt finance? This paper is one of three in this Working Paper Series, along with those by Chouraqui et al. and Gramlich, in which the assessment of fiscal policy is reconsidered. It argues that no single indicator can give even rough answers to all those questions. It then develops four (sets of) indicators, aimed at answering each of the questions ...
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  • 76
    Language: English
    Pages: 52 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.86
    Keywords: Economics
    Abstract: This paper presents work on wage/price blocks for the smaller OECD countries which has been implemented in OECD's world econometric model, INTERLINK. The paper discusses theoretical, statistical and practical aspects of the estimation of business sector wage equations and five domestic demand deflators. It also presents a variety of diagnostic simulations in order to evaluate overall model properties ...
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  • 77
    Online Resource
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    Paris : OECD Publishing
    Language: English
    Pages: 39 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.75
    Keywords: Economics
    Abstract: Industrial subsidies should ideally be measured in ways that permit comparisons across subsidy instruments and countries, and that facilitate subsequent economic analysis of the effects of subsidisation. This paper deals with a number of conceptual issues that arise from these requirements. It first covers some definitional issues, concluding that subsidies should be measured broadly to include a wide range of instruments and both direct and indirect subsidy schemes. The paper then discusses measurement concepts for a range of instruments available to governments ...
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  • 78
    Language: English
    Pages: 152 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.72
    Keywords: Economics
    Abstract: This paper examines the role of structural indicators in the process of multilateral surveillance of structural policies. An analytical framework is suggested that is based on welfare economics and which focuses on efficiency considerations. Potential indicators are examined for six areas -- taxation, trade, industry, agriculture, labour markets and financial markets. These case studies allow a series of lessons to be drawn concerning the use of structural indicators ...
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  • 79
    Language: English
    Pages: 56 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.89
    Keywords: Economics
    Abstract: This paper surveys various estimates of the macroeconomic implications of reducing greenhouse gas emissions. Most available studies focus on policies to reduce CO2 emissions and are limited to the costs of such policies. The survey first examines the key factors shaping baseline emission scenarios. It then looks at the aggregate cost of emission reductions, as shown by both global and country-specific models, and discusses the key determinants of the model outcomes. The paper also briefly reviews other options for reducing greenhouse gas emissions and draws some more general lessons for the policy response to the threat of climate change ...
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  • 80
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 49 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.73
    Keywords: Economics ; Japan
    Abstract: This paper surveys Japanese saving behaviour, whose rate is one of the highest among OECD countries. Macroeconomic factors such as rates of economic growth and inflation may have been important in explaining the high saving rate in the past and the more recent downward trend. Even though growth is now rather lower than in the past, there remain important structural factors which explain the high rate of saving. The most important of these relates to demographic factors. Government policies and cultural and institutional factors seem to have played a relatively less important role. In the coming years, rapid ageing of the population is likely to have an important effect on the rate of saving. The Japanese saving rate is expected to show a substantial decline beyond the year 2000 according to life-cycle model simulations. The implications of this for domestic investment and international saving/investment balances may be important ...
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  • 81
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: English
    Pages: 56 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.87
    Keywords: Economics
    Abstract: In the 1980s, real consumption wages fell relative to labour efficiency in OECD countries, although there has been some pressure on wages recently. The persistent moderation of wages was due to labour-market slack, as well as rising non-wage labour costs and slower increases in output prices relative to consumer prices in some countries. It does not appear to reflect changes in wage behaviour. The analysis of time-series properties suggests that, typically, wages do not fully catch up to past losses. There is, furthermore, no strong evidence for instability of well-specified wage equations with the exception of France where stringent monetary policy since 1983 may have modified the formation of expectations ...
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  • 82
    Language: English
    Pages: 78 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.84
    Keywords: Economics
    Abstract: This paper presents a technical description of the OECD's multi-sector, multi-country applied general equilibrium model -- the WALRAS model. This model has been developed with the explicit objective of quantifying the economy-wide effects of agricultural policies in OECD countries. The common specification of the model for the major OECD agricultural trading countries/regions (Australia, Canada, EEC, Japan, New Zealand and the United States) is presented in detail. The construction of the benchmark data sets and the calibration of the model are also fully described ...
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  • 83
    Language: English
    Pages: 100 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.78
    Keywords: Economics
    Abstract: During the past decade, the formulation of fiscal policy has been increasingly founded on medium-term considerations associated with public debt and economic efficiency. In this regard, this paper, and the ones by Olivier Blanchard and Edward Gramlich in the same Working Paper Series, considers the implications of this development for the overall appraisal of fiscal policy in OECD countries. The paper begins with a review of the existing measure of discretionary change in budget positions and proposes refinements to it. The paper then introduces and illustrates several new indicators designed to help assess the sustainability of policies in the short- and medium-run and their first-round impacts on aggregate demand ...
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  • 84
    Language: English
    Pages: 92 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.88
    Keywords: Economics
    Abstract: Investment growth in the OECD area has been higher in the second half of the 1980s than in the 1970s. However, the ratio of net investment to GDP has remained low by past cyclical standards. This paper first reviews the evolution of business-sector fixed investment and addresses measurement issues related to computers and intangible investment. It then examines the determinants of investment and the extent to which governments can and should influence capital formation. Time-series properties of investment, output and the cost of capital do not appear to be consistent with well-established theories of investment. The best predictor of investment is found to be its own past history. Therefore, although higher investment could be beneficial to future consumption and economic growth, the effectiveness of policies to raise investment via the cost of capital is largely uncertain ...
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  • 85
    Language: English
    Pages: 71 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.76
    Keywords: Economics
    Abstract: This paper measures the net dollar position of the non-U.S. private sector and a few other international positions -- notably the net foreign-currency position of the U.S. private sector. These currency positions provide the basis for a discussion of portfolio effects which are especially relevant for questions related to the future financing of U.S. current-account deficits. A special feature of this exercise is the explicit identification of the non-U.S. public sector as a potential source of dollar assets for the non-U.S. private sector ...
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