The Effectiveness of Export Promotion Policies in a General Equilibrium Framework: The Case of the Philippines

This study examines the general equilibrium effects of different export promotion policies on imports and production of importables and exportables. Unlike other studies, land as a factor input in the production function has been included. Thus, this article develops a three-factor production function where value-added depends upon the use of labor, capital and land.investment incentive system, trade sector, computable general equilibrium (CGE), export commodities

The Effectiveness of Export Promotion Policies in a General Equilibrium Framework: The Case of the Philippines

This study examines the general equilibrium effects of different export promotion policies on imports and production of importables and exportables. Unlike other studies, land as a factor input in the production function has been included. Thus, this article develops a three-factor production function where value-added depends upon the use of labor, capital and land.investment incentive system, trade sector, computable general equilibrium (CGE), export commodities

Advertising and Cigarette Consumption

The authors examine two questions that are relevant to current policy issues: (1) is there a positive response of aggregate demand to advertising? (2) what is the reaction of consumers to government health warnings and media policy? The results support the hypothesis that advertising increases aggregate demand for cigarettes. However, the advent of health warnings and media policies seems to have eradicated this aggregate advertising effect. The findings also support some previous studies that suggest that aggregate advertising effects depreciate within one year.Advertising; Consumer; Health

Central Bank Intervention and Foreign Exchange Volatility

This paper provides additional empirical evidence on the topic of the effectiveness and the impact of Federal Reserve intervention on U.S. exchange rates. Using a daily measure of exchange rate intervention in the yen/dollar and mark/dollar exchange markets for the period January 3, 1985 to March 19, 1997, this paper finds a statistically significant impact of intervention on spot rates. A generalized autoregressive conditional heteroskedasticity exchange rate equation is used to measure the impact of intervention on exchange rate uncertainty. This study finds that intervention is associated with a significant increase in the interday conditional variance (uncertainty) of both bilateral spot exchange rates. This supports the view of Friedman and Schwartz that exchange rate intervention serves to destabilize the foreign exchange market by introducing additional levels of exchange rate uncertainty

Exchange Rate Regimes and Uncertainty

This paper examines the change in exchange rate uncertainty between the Bretton Woods and floating exchange rate periods. We estimate both the unconditional variance and the conditional variance of the DM/dollar exchange rate under each exchange rate regime. The former is estimated on the basis of the coefficient of variation and the latter on the basis of a GARCH model. Our GARCH results show that the unconditional variance greatly understates the change in exchange rate uncertainty that resulted from the switch to a flexible exchange rate regime

Currency Risk and the Safe-haven Hypothesis

It has been argued that the dollar\u27s role as a safe currency may affect its value over and above what can be justified fundamentally. This view stresses the role of the dollar as a safe-haven currency whose demand increases during periods of uncertainty. Applying a generalized autoregressive conditional heteroskedasticity framework to data on four bilateral exchange rates versus the dollar, the results show that uncertainty strengthens the dollar