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Daniel
O Murgo, Ph. D.
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| Current
Research: |
Viability of
Conditional Assistance Programs with Endogenous Lobby Formation |
| Abstract:
Conditional assistance programs generate conflicting relationships
between international financial institutions (IFIs) and member
countries. The political dynamic of the country adds to the conflict
and usually results from opposing interests between the government and
special interests groups opposed to reforms. The experience of IFIs
with conditionality in the 1990s led them to allow countries more
latitude in the design of their reform programs. Conditionality and
ownership are not always relevant. A reformist government does not need
conditionality and it is useless if it does not want to reform. The
usefulness becomes apparent in intermediate situations. A government
that faces opposition may use conditionality and the help of pro-reform
lobbies as a lever to counteract anti-reform groups and succeed in
implementing reforms. PDF File |
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| Welfare Effects of Taxes in a Small Open Economy | |
| Abstract:
Analyses of welfare effects of taxation policies typically start with a
pristine setting without distortions and quantify the losses from tax
increases. In reality, numerous taxes in existence distort the economy
and changes in one tax instrument that would be welfare improving in
their absence may lead to paradoxical losses. This paper provides
quantitative examples of such paradoxes for a small open economy
populated by infinitely-lived agents. PDF File |
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| Stock Markets, Adjustment Costs and the International Transmission of Shocks. A Calibration Exercise. | |
| Abstract: The paper studies the role that stock markets and adjustment costs play in the international transmission of supply shocks. It uses a two-country one-good model where intertemporal optimizing behavior of infinitely lived agents endogenously determines the rate of capital accumulation and the current account. A calibration exercise is conducted starting with plausible values for the relevant variables. The effects of supply shocks and changes in different variables are calculated numerically. | |
