An Estimated Small Open Economy Model of the Financial Accelerator

This paper develops a small open economy model in which entrepreneurs partially finance investment using foreign currency-denominated debt subject to an external finance premium. We use Bayesian estimation techniques to evaluate the importance of balance sheet-related credit market frictions for emerging market countries by incorporating the financial accelerator mechanism. We obtain a sizable value for the external finance premium, which is tightly estimated away from zero. Our results support the inclusion of the financial accelerator in an otherwise standard model that-acting through balance sheets-magnifies the impact of shocks, thereby increasing real and financial volatility. Copyright 2006, International Monetary Fund

Oil Price Movements and the Global Economy: A Model-Based Assessment

We develop a five-region version (Canada, an oil exporter, the United States, emerging Asia and Japan plus the euro area) of the Global Economy Model (GEM) encompassing production and trade of crude oil, and use it to study the international transmission mechanism of shocks that drive oil prices. In the presence of real adjustment costs that reduce the short- and medium-term responses of oil supply and demand, our simulations can account for large endogenous variations of oil prices with large effects on the terms of trade of oil-exporting versus oil-importing countries (in particular, emerging Asia), and result in significant wealth transfers between regions. This is especially true when we consider a sustained increase in productivity growth or a shift in production technology towards more capital- (and hence oil-) intensive goods in regions such as emerging Asia. In addition, we study the implications of higher taxes on gasoline that are used to reduce taxes on labor income, showing that such a policy could increase world productive capacity while being consistent with a reduction in oil consumption.Economic models; Inflation and prices; International topics

Ceramic Brackets Revisited

Increasing demand for esthetics during fixed appliance therapy has led to a significant increase in the demand for and use of ceramic brackets. This comprehensive review covers the physical properties as well as rebonding and debonding of polycrystalline and monocrystalline ceramic brackets. Furthermore, this review aims to present the advantages and disadvantages as well as the refinements these brackets underwent since their introduction in the late 1980s. Interestingly, the introduction and development of these brackets were a part of a quickly expanding ceramic technology in many industries. The authors strongly believe that the novice will particularly benefit from this review presenting up-to-date knowledge

Oil Price Movements and the Global Economy: A Model-Based Assessment

We develop a five-region version (Canada, a group of oil exporting countries, the United States, emerging Asia and Japan plus the euro area) of the Global Economy Model (GEM) encompassing production and trade of crude oil, and use it to study the international transmission mechanism of shocks that drive oil prices. In the presence of real adjustment costs that reduce the short- and medium-term responses of oil supply and demand, our simulations can account for large endogenous variations of oil prices with large effects on the terms of trade of oil-exporting versus oil-importing countries (in particular, emerging Asia), and result in significant wealth transfers between regions. This is especially true when we consider a sustained increase in productivity growth or a shift in production technology towards more capital- (and hence oil-) intensive goods in regions such as emerging Asia. In addition, we study the implications of higher taxes on gasoline that are used to reduce taxes on labor income, showing that such a policy could increase world productive capacity while being consistent with a reduction in oil consumption.

Finansal Stres ve Iktisadi Faaliyet

This study examines the interaction between financial stress and economic activity across emerging markets (EMs). Episodes of financial stress can be broadly defined as periods when the financial system is under acute strain and its ability to intermediate is impaired. This study introduces a monthly composite index used to measure financial stress episodes across EMs. The study then examines the implications of domestic and external financial stress shocks on Turkish economic activity and contrasts the dynamics with that of other EMs. Quantitatively, financial stress matters. Specifically, even a temporary financial stress shock can drag industrial production substantially below trend.Financial crises, Financial stress index, Emerging market economies

Comparison of Shear Bond Strengths of Ceramic Brackets Using Either Self-etching Primer or Conventional Method After Intracoronal Bleaching

Objective:To evaluate initial shear bond strengths (SBSs) of ceramic brackets using either a self-etching primer (SEP) or the conventional method (CM) after intracoronal bleaching with sodium perborate and distilled water.Materials and Method:Eighty human incisors were divided into 4 groups according to bleaching and bonding procedures: group 1, bleaching was not applied and brackets were bonded with SEP; group 2, bleaching was not applied and brackets were bonded with the CM; group 3, intracoronal bleaching with sodium perborate was applied for 3 weeks and brackets were bonded with SEP; group 4, intracoronal bleaching with sodium perborate was applied for 3 weeks and brackets were bonded with the CM. The SEP (Transbond Plus) was applied as recommended by the manufacturer. After SEP application, ceramic brackets were bonded with light cure adhesive (Transbond XT). For the CM, the teeth were etched with 37% phosphoric acid. After etching, a thin uniform coat of primer (Transbond XT Primer) was applied and ceramic brackets were bonded with light cure adhesive (Transbond XT). The SBSs were measured after water storage for 30 days, after 1000 cycles of thermocycling between 58C and 558C. Bond failure location was determined with the adhesive remnant index (ARI).Results:For the SEP method, there was no significant difference between the SBS values of the bleaching and nonbleaching groups. Furthermore, for the CM, the SBS value of the nonbleaching group was not significantly different from that of the bleaching group. The SBS values of the SEP method presented significant differences from the SBS values of the CM (p , 0.001). The SBS values of the SEP application decreased with and without bleaching. ARI scores did not show any significant difference between the groups (p = 0.174).Conclusion:Intracoronal bleaching with sodium perborate and distilled water did not affect the SBS values of ceramic brackets