Debt Neutrality and the Infinite–Lived Representative Consumer

In this paper, we study the intertemporal equilibria of an infinite–lived representative agent model with public debt. We show that for a given path of government expenditures, there generally exists a continuum of equilibria depending on various debt policies. These equilibria are characterized by different paths of consumption and leisure. Two examples illustrate the results: in the first one consumption and leisure may converge to zero, in the second one consumption goes to infinity while leisure goes to its maximum value. In a third example with externalities à la Romer, the standard intertemporal equilibrium with zero public debt may be dominated by other intertemporal equilibria.     

Nonnegativity constraints and intratemporal uncertainty in a multi-good life-cycle model

In the standard multi-good life-cycle consumption model (with intertemporal additive utility) the intratemporal relations between the marginal utilities of the different goods are deterministic. However, these deterministic identities will not usually be satisfied by the data. To avoid these deterministic relationships, we apply an approach which consists of introducing intratemporal uncertainty, and which is, in particular, interesting when additional nonnegativity constraints are present. We estimate some simple versions of the model with this so-called intratemporal uncertainty. The estimation results are, in general, in accordance with the theory, and most versions of the model are not rejected by Hansen and Singleton's misspecification test.     

Seigniorage and public good in an OLG model with cash-in-advance constraints

This paper is a contribution to the theory of the optimal monetary policy in overlapping generations models with a cash-in-advance constraint applying on old age consumption purchases. We are particularly interested in the study of seigniorage when the latter is used to finance public goods valued by consumers. Assuming that a public good enters the utility function and the existence of cash-in-advance constraints, we find a Laffer curve of seigniorage at steady-state. We also analyze the dynamic optimal monetary policy when the government maximizes an intertemporal social welfare function and can only resort to seigniorage to finance the purchases of the public good. We show that the optimal rate of money growth may be strictly higher than the one which maximizes steady-state seigniorage: the optimal amount of seigniorage may lie on the decreasing part of the Laffer curve of seigniorage. We finally suppose that the government can use lump-sum taxes in addition to seigniorage. Then, the Friedman rule prevails and public expenditures are only financed through lump-sum taxes.     

The antecedents and innovation effects of domestic and offshore R&D outsourcing: The contingent impact of cognitive distance and absorptive capacity

This paper analyzes differences in the antecedents and performance consequences of domestic and offshore R&D outsourcing. Offshore outsourcing is characterized by larger cognitive distance. We find that absorptive capacity from internal R&D allows for more offshore outsourcing and that offshore outsourcing leads to more positive innovation outcomes, especially product innovation.     

The task ahead for the cities of the developing countries

Between 1975 and the year 2000 the cities of the developing countries will be expected to absorb 70% of the projected population increases — 1.3 billion people — most of them poor. By any measures this is a gargantuan task. This paper examines the causes for the unprecedented growth of urban areas, the magnitude of this growth, and where it is occuring. Although cities are absorbing large numbers of people, they are doing so in a manner that is both inefficient and inequitable. Few cities are prepared for the vast increases that are clearly foreseeable in the next two decades. Unless there are changes in national, regional, and urban policies, the growth of urban areas will not make its maximum possible contribution to social well-being.     

Technology assessment and developing countries

The assessment of technologies may be of great importance to developing countries in their present process of industrialization in the framework of the New International Economic Order. The main criteria for the assessment of the technologies most relevant to the needs of developing countries are reviewed from the point of view of employment, scarce capital, and energy resources. The design of appropriate technologies should take into account the tastes, culture, needs, purchasing power, and raw materials available in developing countries. A systems approach should therefore be used to assess technologies. The programs undertaken by several agencies of the United Nations System are described which may contribute to build up technology assessment capability in developing countries.