This paper analyses whether the first-best level of public inputs exceeds the second-best level. On the basis of a simple model, we argue that the level of productivity-enhancing public expenditures ...

We present a model of the optimal level of international reserves for a small open economy seeking insurance against sudden stops in capital flows. We derive a formula for the optimal level of ...

Researchers in Hungary have developed a model to calculate the optimal PV and battery storage balance to support the European grid in the next few years. They found that the cost-optimal range is at ...

This paper extends the framework derived by Jeanne and Rancière (2006) by explicitly incorporating the dollarization of bank deposits into the analysis of the optimal level of foreign reserves for ...