Template-Type: ReDIF-Paper 1.0 Author-Name: Fidelina B. Natividad Author-Name-First: Fidelina Author-Name-Last: Natividad Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Exchange Rate Dynamics Under Alternative Intervention Rules Abstract: Recent research on exchange rates have incorporated short-run intervention rules into models assuming rational expectations. Most of the papers focus only on a particular intervention rule, either the leaning against the wind policy (nominal exchange rate rule) or the policy of stabilizing the real exchange rate (real exchange rate rule). The objective of this paper is to examine the effects of these two alternative short-run intervention rules on the behavior of a small open economy. Using the Dornbusch (1976) model modified to allow for imperfect asset substitution, we analyzed how the system responds to a given disturbance under each intervention rule. We show that these two intervention rules differ in that the nominal exchange rate rule can only moderate the movement of the nomical exchange rate while the real exchange rate rule can reverse the movement of the nominal exchange rate and, consequently, they differ in terms of the resulting size of exchange rate jump, speed of adjustment, and relationship between the exchange rate and the interest rate movements. These differences are important considerations for the choice of an exchange rate policy in a small open economy. Creation-Date: 1988-01 Publication-Status: Published as UPSE Discussion Paper No. DP 1988-01, January 1988 Number: 198801 Handle: RePEc:phs:dpaper:198801 Template-Type: ReDIF-Paper 1.0 Author-Name: Ma. Socorro H. Gochoco Author-Name-First: Ma. Socorro Author-Name-Last: Gochoco Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Raburn M. Williams Author-Name-First: Raburn Author-Name-Last: Williams Title: A Duopoly Theory of Government Money Production : The 1930s and 1940s : A Comment Creation-Date: 1988-02 Publication-Status: Published as UPSE Discussion Paper No. 1988-02, February 1988 Number: 198802 Handle: RePEc:phs:dpaper:198802 Template-Type: ReDIF-Paper 1.0 Author-Name: Jose Encarnacion, Jr. Author-Name-First: Jose Author-Name-Last: Encarnacion, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Production Under Uncertainty : Safety First and the Crop Mix Abstract: A safety first decision criterion suggests a secondary objectives when the safety condition is satisfied. In the model of this paper, the product mix of a smallholder pursuing safety first in one where the crops produced are equally safe -- he cannot afford to gamble and he does not. When the safety condition is satisfied, he chooses a riskier crop mix the larger his resources or the lower his degree of risk aversion. Creation-Date: 1988-03 Publication-Status: Published as UPSE Discussion Paper No. 1988-03, March 1988 Number: 198803 Handle: RePEc:phs:dpaper:198803 Template-Type: ReDIF-Paper 1.0 Author-Name: Raul V. Fabella Author-Name-First: Raul Author-Name-Last: Fabella Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Egalitarian Bias and Team Productivity : An Impossibility Abstract: We show that an output sharing scheme with an egalitarian bias is inconsistent with first best production level in a team with self-interested nonidentical members. Creation-Date: 1988-04 Publication-Status: Published as UPSE Discussion Paper No. 1988-04, April 1988 Number: 198804 Handle: RePEc:phs:dpaper:198804 Template-Type: ReDIF-Paper 1.0 Author-Name: Raul V. Fabella Author-Name-First: Raul Author-Name-Last: Fabella Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Equity, Efficiency and Altruism in Cooperative Teams Abstract: We show that in a cooperative team characterized by symmetric nondiscriminating altruism, imperfect altruism and strictly positive equity bias are inconsistent with first best efficiency when members are nonidentical. Creation-Date: 1988-04 Publication-Status: Published as UPSE Discussion Paper No. 1988-05, April 1988 Number: 198805 Handle: RePEc:phs:dpaper:198805 Template-Type: ReDIF-Paper 1.0 Author-Name: Ma. Socorro H. Gochoco Author-Name-First: Ma. Socorro Author-Name-Last: Gochoco Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Financing Decisions, Rational Expectations, and the "Crowding Out" Effect: The Case of the Philippines Abstract: This study is an empirical test of the validity of the traditional "crowding out" effect versus the Ricardian Equivalence Theorem in the case of a developing country, the Philippines. The assumption of rationality of expectations, and a generalized least squares procedure with cross-equation constraints are used. The data are monthly, covering the period January 1981 to December 1986. The results show that financing decisions matter and a significant "crowding out" effect exists and is discernible in the case of short-term Treasury bill rates. Furthermore, it does not arise because of irrationality on the part of the public but perhaps because of certain structural features in developing countries which allow bonds to add to net wealth. Creation-Date: 1988-05 Publication-Status: Published as UPSE Discussion Paper No. 1988-06, May 1988 Number: 198806 Handle: RePEc:phs:dpaper:198806 Template-Type: ReDIF-Paper 1.0 Author-Name: Cristino Arroyo III Author-Name-First: Cristino Author-Name-Last: Arroyo III Title: Liquidity, Risk, and Efficient Forward Foreign Exchange Markets Abstract: In this paper I suggest a partial answer to a question: if forward and spot currency markets are not "efficient" in the sense that on average the speculative profits agents can make in this market given information at the time expectations are formed are nonzero, why are they not so? Research that has suggested the inclusion of risk premia has met with mixed results in empirical tests. This paper suggests that treating currency as having differential liquidity services in a dynamic programming framework provides an alternative model that can accommodate some empirical facts that risk premia along cannot account for. Creation-Date: 1988-06 Publication-Status: Published as UPSE Discussion Paper No. 1988-07, June 1988 Number: 198807 Handle: RePEc:phs:dpaper:198807 Template-Type: ReDIF-Paper 1.0 Author-Name: Rolando A. Danao Author-Name-First: Rolando Author-Name-Last: Danao Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Convex Domains; Mathematics Abstract: This paper shows that a necessary condition for strict quasiconcavity is that each level set is contained in the boundary of the associated upper level set. This condition and the strict convexity of upper level sets are sufficient for strict quasiconcavity and are also necessary when the function is continuous with a strictly convex domain. Creation-Date: 1988-07 Publication-Status: Published as UPSE Discussion Paper No. 1988-08, July 1988 Number: 198808 Handle: RePEc:phs:dpaper:198808 Template-Type: ReDIF-Paper 1.0 Author-Name: Orville Solon Author-Name-First: Orville Author-Name-Last: Solon Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: De Facto Tenure and the Allocation of Land Among Squatters Abstract: The hypothesis here is that the risk of eviction which squatters in a given area face largely determines the nature of property conventions that abate the state of initial conflict arising from contending claims over illegally occupied land. This is examined by analyzing the two most commonly observed land allocation mechanisms in the squatter settlement. Creation-Date: 1988-08 Publication-Status: Published as UPSE Discussion Paper No. 1988-09, August 1988 Number: 198809 Handle: RePEc:phs:dpaper:198809 Template-Type: ReDIF-Paper 1.0 Author-Name: Carlos C. Bautista Author-Name-First: Carlos Author-Name-Last: Bautista Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Solving General Equilibrium Systems Using SCROP 60 Abstract: The paper serves to place the software (SCROP60) in the public domain. A guide on how to operate it and its hardware requirements is discussed. A neoclassical general equilibrium example using the software is then presented to analyze (1) changes in initial endowments and (2) a corporate income tax problem and the attendant welfare issues involved. Creation-Date: 1988-08 Publication-Status: Published as UPSE Discussion Paper No. 1988-10, August 1988 Number: 198810 Handle: RePEc:phs:dpaper:198810 Template-Type: ReDIF-Paper 1.0 Author-Name: Florian A. Alburo Author-Name-First: Florian Author-Name-Last: Alburo Title: TNCs and Structural Change in the Philippines Abstract: The paper examines the changing role of Transnational Corporations (TNCs) in the Philippines government's structural reforms. The structural change that is now in the Philippines' development strategy implies a different role for direct foreign investment (DFI) and TNC than in the past. In particular, DFI flows are seen to absorb the slack in the use of multilateral, bilateral and commercial loan sources. Given the changing picture of global DFI towards international production, the realignment and revaluation of currencies among home countries, and inctreasing competitive structure of global markets, TNCs will be seen to play not only a larger but a different role from the past which has been inward-looking into domestic markets. Creation-Date: 1988-09 Publication-Status: Published as UPSE Discussion Paper No. 1988-11, September 1988 Number: 198811 Handle: RePEc:phs:dpaper:198811