scholarly journals DSGE MODELING IN THE FOCUS OF FISCAL AND MONETARY ISSUES

2021 ◽  
Author(s):  
Serhii Shvets ◽  
Keyword(s):  
Economic Policy ◽  
Driving Forces ◽  
Developing Economies ◽  
Public Investment ◽  
Developed Countries ◽  
Developing Economy ◽  
Limited Mobility ◽  
Dynamic Stochastic ◽  
Low Efficiency ◽  
Dsge Modeling

Due to the intensification of the economic crisis in the late 20th – early 21st, fiscal and monetary issues have activated an impressive discourse, which became the prominent markers of helpful research engines for supporting sustainable development in the face of increasing debt burden. One of the most effective scenario modeling methods for implementing economic policy is the Dynamic Stochastic General Equilibrium (DSGE) model. The global practice in operating with such a tool is focused mainly on developed countries, while developing economies have significant differences and require notable adjustments. The goal of the presented study is to highlight the exercise of solving fiscal and monetary issues using a DSGE modeling toolkit for a developing economy. An incomplete list of proven features of DSGE modeling for a developing economy regarding the solution of fiscal and monetary issues includes: a high proportion of non-Ricardian consumers, forced unemployment, limited competition in the labor market, a significant volume of remittances, low efficiency and high capital return of public investment, low degree of home bias, smoothing crowding-out effect, financial repressions, limited mobility in the international capital market, lack of clear and transparent rules, and overruled fiscal and monetary spaces. In the context of the fiscal and monetary study, problematic issues of DSGE modeling are not limited only to the difficulties of theoretical and technical solutions. With the gradual elimination of barriers between the sectors in the world economy due to global transformations, the driving forces of growth require reviewing the anti-crisis management toolkit. Taking into account the progressive technological shifts in the field of information transmission and processing, the solution of the listed problematic issues related to the theoretical and technical support of DSGE modeling for a developing economy adds a new definition to the powerful hardware tool that reproduces specific scenario conditions for assessing the consequences of economic policy implementations.

scholarly journals The golden rule of public finance under active monetary stance: endogenous setting for a developing economy

2020 ◽  
Vol 17 (2) ◽  
pp. 216-230 ◽  
Author(s):  
Serhii Shvets
Keyword(s):  
Public Finance ◽  
Generating Function ◽  
Positive Impact ◽  
Golden Rule ◽  
Output Growth ◽  
Developing Economy ◽  
Price Stickiness ◽  
Long Run ◽  
Dynamic Stochastic ◽  
Low Efficiency

The paper aims to verify the introduction of the golden rule of public finance under an active monetary stance for a developing economy using a dynamic stochastic general equilibrium model. Besides the two rigidities, namely the deep habit formation and Calvo-style price stickiness, the model structure incorporates real money holdings and welfare-enhancing government purchases in the utility-generating function and a modified Taylor rule. The simulation results have validated the visible crowding-out of private consumption and investment in the short run and a positive impact of the productive government spending on long-run growth, but with some important caveats. In the case of a developing economy that usually has low efficiency and high returns to public capital, the given factors prove significant in addressing the study issue. The results are robust in terms of the structure of utility-generating function, a relatively high share of liquidity-constrained households, and a degree of price stickiness. Moreover, to offset the debt accumulation as a result of increased public investment financing by persistent output growth, in the long run, the central bank should not only rely on response to the fluctuation of inflation and output but also account for a move of public debt.

Electronic Banking as a Strategy for Customer Service Improvement in the Developing Economy

2010 ◽  
pp. 34-45
Author(s):  
Asma Mobarek
Keyword(s):  
Customer Service ◽  
Rural Areas ◽  
Developing Economies ◽  
Developed Countries ◽  
The Other ◽  
The Internet ◽  
Service Improvement ◽  
Developing Economy ◽  
Banking Services ◽  
Maximum Benefit

The objective of the chapter is to present a brief review of E-banking services especially in the developing economies, highlighting the major challenges of E-banking with a guideline or recommendations to address those challenges. Technology has introduced new ways of delivering banking to the customer. Developed countries (DC) customers of the E-Banking services are fully aware of the services but the customer’s in the developing economies still lag behind. It is clearly seen that delivery channels are lacking in meeting the demands of the customer by not making them aware of e-banking and using obsolete or not too up-to-date technology. I would thus conclude that banks in the developing countries should drown themselves in all the intricacies regarding e-banking to determine ways that will affect the customers in and use it to their maximum benefit. The other issue is that there are very few or no banking facilities in the rural areas and furthermore, access to the internet is close to impossible in these areas therefore awareness and utilization of these services is very little or none at all. At last but not the least is that Banks must adapt to the electronics age. Consumers demand it. Economics drives it. Banks must exploit it.

Main problems of investment attraction of Russia

2016 ◽  
Vol 11 (2) ◽  
pp. 152-162 ◽  
Author(s):  
Полянин ◽  
Andrey Polyanin ◽  
Рудакова ◽  
Olga Rudakova ◽  
Кузнецова ◽  
...  
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Economic Development ◽  
Developing Economies ◽  
State Level ◽  
Developed Countries ◽  
The State ◽  
Regional Level ◽  
Investment Growth

World practice indicates that the basis of economic growth is investment growth both at the state level, and at the regional level. Experience of the majority of the countries which have greatly improved their economic development for the last decades proves this fact. Comprehension of this fact has led to the situation when both developed countries, and developing economies consider attraction of investments into the economy at national and regional levels as one of priority problems of economic policy.

scholarly journals The effectiveness of the inflation targeting regime as the basis for monetary policy in the conditions of crisis in the economy

2021 ◽  
pp. 20
Author(s):  
Oleksandr Dziubliuk
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Large Scale ◽  
Inflation Targeting ◽  
Developing Economies ◽  
Developed Countries ◽  
Gradual Transition ◽  
Monetary Regime ◽  
Low Efficiency ◽  
The Impact

Introduction. Inflation targeting, as a commitment by the central bank to adhere to quantitative inflation rates, has become a fairly common monetary regime in the last few decades in developed countries and developing economies. However, the impact of the pandemic crisis on the course of economic processes has revealed serious problems associated with the low efficiency of this regime. Therefore, there is an objective need to re-evaluate the system in which the central bank focuses monetary regulation solely on price stability, ignoring other strategic directions of government policy related to the need to save economic activity and prevent a large-scale recession.Purpose. Clarification of the peculiarities of the implementation of monetary policy on the basis of the inflation targeting regime and identification of problematic aspects of this regime in the conditions of external shocks and the unfolding economic crisis.Methods. General scientific and empirical techniques and tools of economics, methods of analysis and synthesis, comparison, compilation and grouping are used.Results. The crisis indicates the need to build a monetary regime that would meet the interests of sustainable economic growth and social welfare. In Ukraine, there were no proper initial preconditions for the inflation targeting regime implementation. Therefore, adjusting the priorities of monetary policy in the crisis should reflect the gradual transition to a more flexible regime using monetary methods to support households and businesses, promote job creation, and stimulate aggregate demand.Prospects. Research of ways to increase the level of flexibility of monetary regulation, opportunities to expand the mandate of the central bank and improve the choice of optimal areas of influence on the economy with the help of monetary instruments at its disposal.

Technological Strategies to Increase Performance of Women-Owned SMEs

2020 ◽  
Vol 11 (1) ◽  
pp. 79-79
Author(s):  
Wawan Dhewanto ◽  
Fera Yunita ◽  
Vania Nur Rizqi ◽  
Salma Azzahra
Keyword(s):  
Business Performance ◽  
Developing Economies ◽  
Rapid Development ◽  
Scale Up ◽  
Developed Countries ◽  
Global Market ◽  
Product Diversification ◽  
Developing Economy ◽  
Use Of Technology ◽  
Women Entrepreneur

Women empowerment and women entrepreneurship has become interesting topic in many researches. This growing attention triggered by education and socio-cultural betterment towards women. Nowadays people see women as important as men in professional context, including their important role to lead and create enterprises. Not only in developed countries, women in developing economy also build opportunities to create enterprises (Motukuri, 2010). There are large number of enterprises in developing economy owned by women (Deka, 2018). The enterprises dominated by small and medium scale enterprises. Instead of rapid development in women enterprises, there are also challenges. Global market provides new chance yet tight competition at the same time. Technological change is one of the key strategies to win competition and increase company performance (Akman and Dagdeviren, 2018). The use of technology in SME's owned by women in developing economies has grow significantly. Technology in this context is not only about Information Communication and Technology (ICT) that has widespread user nowaday. The technology in this context also involving processing technology, for example handling and packaging. Based on prevoius research, the use of technology has brought women enterprises into better business performance and growth. The example of this growth are opening new market, increasing production capacity and adding product diversification (Suhaimi et al, 2018). This research aim to recognize the diverse of strategies to technology in SMEs owned by women, by unfolding the following research questions : 1) What key technology that use to increase business performance in SMEs owned by women? 2) To what extent the business growing? 3) What are the most important influences for women entrepreneur in using the technology? 4) What kind of collaboration that moderating the use of technology to increase business performance for women entrepreneur? Keywords: SMEs, Scale up, Woman Entrepreneurship, Technology Adoption, Technology Strategy.

scholarly journals A Small Open Economy DSGE Model for Pakistan

2008 ◽  
Vol 47 (4II) ◽  
pp. 963-1008 ◽  
Author(s):  
Adnan Haider ◽  
Safdar Ullah Khan
Keyword(s):  
Economic Policy ◽  
Open Economy ◽  
Informal Economy ◽  
Developing Economies ◽  
New Keynesian ◽  
Dsge Models ◽  
Modeling Framework ◽  
Macroeconomic Models ◽  
Short Run ◽  
Dynamic Stochastic

In recent years there has been a growing interest in academics, international policy institutions and central banks1 in developing small-to-medium, even large-scale, open economy macroeconomic models called Dynamic Stochastic General Equilibrium (DSGE) models based on new-Keynesian framework.2 The term DSGE was originally used by Kydland and Prescott (1982) in their seminal contribution on Real Business Cycle (RBC) model. The RBC model is based on neoclassical framework with micro-founded optimisation behaviour of economic agents with flexible prices. One of the critical assumptions of this model is that fluctuations of real quantities are caused by real shock only; that is, only stochastic technology or government spending shocks play their role. Later research in DSGE models however included Keynesian short-run macroeconomic features (called nominal rigidities), such as Calvo (1983) type staggered pricing behaviour and Taylor (1980) type wage contracts. Hence this new DSGE modeling framework labeled as new-neoclassical synthesis or new-Keynesian modeling paradigm. 3 This new approach combines micro-foundations of both households and firms optimisation problems and with a large collection of both nominal and real (price/wage) rigidities that provide plausible short-run dynamic macroeconomic fluctuations with a fully articulated description of the monetary policy transmission mechanism; see, for instance, Christiano, et al. (2005) and Smets and Wouters (2003). The key advantage of modern DSGE models, over traditional reduce form macroeconomic models, is that the structural interpretation of their parameters allows to overcome the famous Lucas critique (1976).4 Traditional models contained equations linking variables of interest of explanatory factors such as economic policy variables. One of the uses of these models was therefore to examine how a change in economic policy affected these variables of interest, other things being equal. In using DSGE models for practical purposes and to recommend how central banks and policy institutions should react to the short-run fluctuations, it is necessary to first examine the possible sources,5 as well as to evaluate the degree of nominal and real rigidities present in the economy. In advanced economies, like US and EURO area, it is easy to determine the degree of nominal and real rigidities as these economies are fully documented. In developing economies like Pakistan, where most of economic activities are un-documented (also labeled as informal economy, black economy, or underground economy), it is very difficult to determine the exact degree of nominal and real rigidities present in the economy. However, one can approximate results using own judgments and through well defined survey based methods

The Reproduction Vector of the Russian Economy: 1999-2007

2008 ◽  
pp. 94-109 ◽  
Author(s):  
D. Sorokin
Keyword(s):  
Economic Policy ◽  
Human Capital ◽  
Growth Rates ◽  
Developed Countries ◽  
Gdp Per Capita ◽  
Real Sector ◽  
Russian Economy ◽  
Per Capita ◽  
The Developed Countries

The problem of the Russian economy’s growth rates is considered in the article in the context of Russia’s backwardness regarding GDP per capita in comparison with the developed countries. The author stresses the urgency of modernization of the real sector of the economy and the recovery of the country’s human capital. For reaching these goals short- or mid-term programs are not sufficient. Economic policy needs a long-term (15-20 years) strategy, otherwise Russia will be condemned to economic inertia and multiplying structural disproportions.

Diffusion and Adoption of Corruption in Developing Economies: Evidence from Ghana

2018 ◽  
Vol 6 (6) ◽  
pp. 21
Author(s):  
Solomon A. Keelson ◽  
Thomas Cudjoe ◽  
Manteaw Joy Tenkoran
Keyword(s):  
Social Values ◽  
Developing Economies ◽  
Policy Formulation ◽  
Institutional Factors ◽  
Developing Economy ◽  
Theoretical Underpinning ◽  
Institutional Failure ◽  
The Social ◽  
The Relationship ◽  
And Diffusion

The present study investigates diffusion and adoption of corruption and factors that influence the rate of adoption of corruption in Ghana. In the current study, the diffusion and adoption of corruption and the factors that influence the speed with which corruption spreads in society is examined within Ghana as a developing economy. Data from public sector workers in Ghana are used to conduct the study. Our findings based on the results from One Sample T-Test suggest that corruption is perceived to be high in Ghana and diffusion and adoption of corruption has witnessed appreciative increases. Social and institutional factors seem to have a larger influence on the rate of corruption adoption than other factors. These findings indicate the need for theoretical underpinning in policy formulation to face corruption by incorporating the relationship between the social values and institutional failure, as represented by the rate of corruption adoption in developing economies.

Australia—The Hidden Jewel

2018 ◽  
Author(s):  
Mahesh K. Joshi ◽  
J.R. Klein
Keyword(s):  
Natural Resources ◽  
Value Chain ◽  
Global Economy ◽  
Good Governance ◽  
Developing Economies ◽  
Raw Materials ◽  
Manufacturing Sector ◽  
Developed Countries ◽  
The United States ◽  
Dutch Disease

The twenty-first century is being touted as the Asian century. With its stable economy, good governance, education system, and above all the abundant natural resources, will Australia to take its place in the global economy by becoming more entrepreneurial and accelerating its rate of growth, or will it get infected with the so-called Dutch disease? It has been successful in managing trade ties with fast-developing economies like China and India as well as developed countries like the United States. It has participated in the growth of China by providing iron ore and coal. Because it is a low-risk country, it has enabled inflow of large foreign capital investments. A lot will depend on its capability and willingness to invest the capital available in entrepreneurial ventures, its ability to capture the full value chain of natural resources, and to export the finished products instead of raw materials, while building a robust manufacturing sector.

Effects of water deficiency on preference and performance of an insect herbivore Ostrinia furnacalis

2021 ◽  
pp. 1-10
Author(s):  
M.Y. Duan ◽  
H. Zhu ◽  
H. Wang ◽  
S.Y. Guo ◽  
H. Li ◽  
...  
Keyword(s):  
Driving Forces ◽  
Oviposition Preference ◽  
Precipitation Pattern ◽  
Ostrinia Furnacalis ◽  
Oviposition Choice ◽  
Offspring Performance ◽  
Corn Borer ◽  
Limited Mobility ◽  
Offspring Fitness ◽  
And Performance

Abstract With further climate change still expected, it is predicted to increase the frequency with plants will be water stressed, which subsequently influences phytophagous insects, particularly Lepidoptera with limited mobility of larvae. Previous studies have indicated that oviposition preference and offspring performance of Lepidoptera insects are sensitive to drought separately. However, the integration of their two properties is not always seen. Here, we evaluated changes in oviposition selection and offspring fitness of a Lepidoptera insect under three water-stressed treatments using a model agroecosystem consisting of maize Zea mays, and Asian corn borer Ostrinia furnacalis. Results found that female O. furnacalis preferred to laying their eggs on well-watered maize, and then their offspring tended to survive better, attained bigger larvae mass, and developed more pupae and adults on the preferred maize. Oviposition selection of O. furnacalis positively correlated with height and leaf traits of maize, and offspring fitness positively related with water content and phytochemical traits of hosts. Overall, these results suggest that oviposition choice performed by O. furnacalis reflects the maximization of offspring fitness, supporting preference–performance hypothesis. This finding further highlights that the importance of simultaneous evaluation of performance and performance for water driving forces should be involved, in order to accurately predict population size of O. furnacalis under altered precipitation pattern.

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