The Effects of the Changing Policy Environment on the Global Economy

A Small-Scale Model Approach

by Ku Shin

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 7.7 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback207 pages $45.00 $36.00 20% Web Discount

This Note analyzes the effects of the "changing policy environment" — the peace dividend, investment stimulation policy, political environment change, and economic cooperation — on the global economy. Its goals are to (1) determine how shifts in the changing policies in the U.S. and Japan contribute to continued growth and reduced external imbalances in both countries and the rest of the world, and (2) suggest strategies for a multicountry simulation model of the world economy. The first essay develops a multicountry simulation model of the world economy. The second essay describes the economic impact of the peace dividend on the world economy: (1) the macroeconomic consequences of U.S. defense cuts; and (2) the impacts of diverting resources from the military to other government programs (i.e., public capital stock) on the U.S., Japan, and other economies. The third essay analyzes U.S. and Japanese corporate investment behavior and the own-effects and cross country spillovers of investment-oriented tax policy changes in the different regions. The fourth essay examines the implications of a "partisan theory" of macroeconomic policy for U.S.-Japan economic relationships. The final essay provides economic gains from coordinating policies among the industrial economies.

This report is part of the RAND Corporation note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.