Macroeconomics of medium-term aid scaling-up scenarios /

Macroeconomics of medium-term aid scaling-up scenarios /

Saved in:
Bibliographic Details
Imprint:[Washington, D.C.] : International Monetary Fund, ©2010.
Description:1 online resource (45 pages)
Language:English
Series:IMF working paper ; WP/10/160
IMF working paper ; WP/10/160.
Subject:
Fiscal policy.
Macroeconomics.
Fiscal policy.
Macroeconomics.
Format: E-Resource Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/12498636
Hidden Bibliographic Details
Other authors / contributors:Berg, Andrew, author.
International Monetary Fund. Research Department, issuing body.
ISBN:9781455250554
1455250554
1282846329
9781282846326
1462347665
9781462347667
9786612846328
6612846321
145520143X
9781455201433
1455289795
9781455289790
Notes:Includes bibliographical references.
English.
Print version record.
Summary:We develop a model to analyze the macroeconomic effects of a scaling-up of aid and assess the implications of different policy responses. The model features key structural characteristics of low-income countries, including varying degrees of public investment efficiency and a learning-by-doing (LBD) externality that captures Dutch disease effects. On the policy front, it distinguishes between spending the aid, which is controlled by the fiscal authority, and absorbing the aid - financing a higher current account deficit - which is influenced by the central bank''s reserve accumulation policies.
Table of Contents:
  • Table of Contents; I. Introduction; II. The Model; A. Households; A.1. Asset Holders; A.2. Hand-to-Mouth Consumers; B. Non-Traded Good Sector; C. Traded Good Sector; D. The Government; E. The Central Bank; F. Aggregation and the Goods Market Equilibrium Conditions; III. Calibration; Tables; 1. Baseline Calibration: Preference Parameters; 2. Baseline Calibration: Technology Parameters; 3. Baseline Calibration: Policy Parameters and Aid Process; IV. Experiments; A. The Baseline Scenario; Figures; 1. Baseline Scenario; B. Partial Aid Absorption Policies.
  • B.1. Reserve Accumulation Rules under a Flexible Exchange Rate Regime2. Partial Absorption under a Flexible Exchange Rate Regime: Accumulating Some Aid Flows in Reserves; B.2. A Fixed Exchange Rate Regime with Sterilization; 3. Full Absorption: A Fixed Exchange Rate Regime without Sterilization; 4. Partial Absorption Policy: A Fixed Exchange Rate Regime with Sterilization; C. Learning-by-Doing Externalities, the Efficiency of Public Investment, and Partial Absorption Policies; C.1. The Efficiency of Public Investment; C.2. The Learning-by-Doing Externalities.
  • 5. The Efficiency of Public Investment and Real GDP6. The Effects of Low Efficiency and Strong Externalities; C.3. Partial Absorption Policies; V. Discussion; 7. Partial Absorption Policies under Low Efficiency and Strong Externalities; 8. Partial Absorption Policies under High Efficiency and Strong Externalities; 9. Partial Absorption and Partial Spending Policies; 10. Welfare Gains and Absorption Policies; VI. Conclusions; Appendix; A. Writing the Model in Stationary Terms; B. The Equations of the Model; B.1. The First Order Conditions of the Households' Problem.
  • B.2. The First Order Conditions of the Firms' ProblemB. 3. Demand Functions, Aggregation, Market Clearing Conditions, and Other Equations; B.4. Definition of Equilibrium; C. The Efficiency of Public Investment and GDP; References.

Similar Items