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Series:Working Papers in Applied Economic Theory 

Working Paper
A model of the employment effects of a local labor tax

Working Papers in Applied Economic Theory , Paper 86-09

Working Paper
A theory of North-South customs unions

We examine the implications of a North-South trade accord where investments in the Southern partner nation exhibit country risk. Our analysis demonstrates that treatment of foreign investment, inducing additional foreign capital inflows. Moreover, the impact of the accord on Southern credibility is directly increasing in the gains from trade between the two partner countries. We also demonstrate that the presence of sovereign risk changes the tradeoffs between trade creation and diversion, enhancing the potential for welfare-increasing trade-diverting North-South regional trade accords.
Working Papers in Applied Economic Theory , Paper 95-06

Working Paper
Real and financial adjustments to fiscal deficits in growing open economies

Working Papers in Applied Economic Theory , Paper 85-03

Working Paper
New results in support of the fiscal policy ineffectiveness proposition

We demonstrate that previous tests of money and fiscal "policy ineffectiveness" are likely to be biased because they ignore interaction effects between policies, induced either by direct policy linkages or through the variation of policies in response to common factors. Our analysis takes into account possible interactive effects between monetary and fiscal policy in an attempt to avoid the biases of previous research. Our empirical analysis of U.S. experience supports the short-run ineffectiveness of anticipated and unanticipated fiscal policy, in contrast to other empirical research, but ...
Working Papers in Applied Economic Theory , Paper 87-02

Working Paper
The effect of health insurance on married female labor supply

We investigate the effects of employer-provided health insurance on the labor supply of married women. Because health benefits commonly are restricted to full-time workers, wives who prefer to work short hours but have no alternate source of insurance may work long hours in order to acquire coverage for their families. We use data from the April 1993 Current Population Survey Benefits Supplement, and we exploit variation in coverage under husbands' health plans to estimate the magnitude of this effect. Our reduced-form labor supply models indicate a strong negative effect of husbands' ...
Working Papers in Applied Economic Theory , Paper 96-09

Working Paper
Error accumulations in dynamic predictions with quarterly econometric models

Working Papers in Applied Economic Theory , Paper 4

Working Paper
Capital flows and macroeconomic management: tequila lessons

Working Papers in Applied Economic Theory , Paper 96-02

Working Paper
Growth and inflation: a cross-country study

Working Papers in Applied Economic Theory , Paper 94-08

Working Paper
The importance of capital formation in the recent productivity slowdown

Working Papers in Applied Economic Theory , Paper 104

Working Paper
Testing intertemporal budget constraints: theory and applications to U. S. federal budget and current account deficits

Previous tests of intertemporal budget balance and present value relationships have generally assumed either a constant discount rate or a constant expected discount rate. Empirical applications of these tests to the study of U.S. government deficits have produced conflicting results. This paper extends this recent work by deriving a testable condition that is sufficient to ensure intertemporal budget balance as long as the expected discount rate is strictly positive. ; We use our test to ask whether the U.S. budget and current account deficits are sustainable. Using postwar annual data, we ...
Working Papers in Applied Economic Theory , Paper 88-03

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Hutchison, Michael M. 13 items

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