DSGE policy tool adapted by Bangko Sentral yields biased insights 340.0
DSGE is the newest type of policy analysis tool adapted by the Bangko Sentral(BSP). It complements the existing set of econometric models it uses as aids in policy making, particularly inflation targeting. Its quite-a-mouthful and technical long name is Dynamic Stochastic General Equilibrium. As with the Corden and Neary framework that BSP analysts used in [...]
Dutch disease raised real exchange rate and caused deindustrialization 339.0
Our leading policy technocrats are near the leading edge in taking up innovative policy analysis tools for the economy – to analyze for possible Dutch disease and for a small model that accounts for the Lucas critique. I discovered two gems from the Bangko Sentral ng Pilipinas (BSP) policy group while researching for my previous [...]
Political Science is natural limit to a joyful journey of synthesis 337.0
Political science seems the natural limit to an enjoyable journey of synthesis that started with innovation. For an emerging market, I always believed that Government has a big role to play in catch up development. This is proven especially by the success of our neighbors in East Asia. The question is more about how to [...]
Crises cracking globalization along the varieties of capitalism 336.0
Varieties of capitalism is a line of inquiry in political science for describing capitalism’s broad brush based on the elements that make it work. Professor July Teehankee of La Salle introduced the approach to me by recommending the Hall and Soskice book pictured below left. Other than Cuba and North Korea, most of the world [...]
Government productivity growth also needed for inclusive development 334.0
Other than installing entrepreneurship and innovation policy for the private sector, big improvements in government productivity are also needed to achieve inclusive development. Still, if you search for “government productivity” in Google, you will not find a direct reference to the subject you have in mind. Strange for what ought to be a subject that [...]
Innovation Policy supplies the dynamism for inclusive development 333.0
In the immediately previous post on October 4, Inclusive development needs an innovation and entrepreneurship policy, I introduced a definition of inclusive development. I argued that the two solutions suggested by static analysis and equilibrating snapshot from macroeconomics – public-private partnership focused on infrastructure as target for investment and conditional cash transfer as safety net [...]
ASEAN maritime security is better served by Asian collective security 330.0
I think the Aquino Administration is 100% correct in visiting Japan and discussing the Spratlys after sponsoring the first ever ASEAN Maritime security meet on the West Philippine Sea in Manila. We ought to initiate discussions on ASEAN maritime security with South Korea as well which is in the same boat as Japan as far [...]
Development management and the latest in new institutional economics 320.0
According to what is already known, the Philippines is apparently unable to use new research in development management to improve governance to attain catch-up with our galloping neighbors or, alternatively, to reduce unemployment and poverty in the Philippines. Thus, in one roundtable discussion last week anticipating President Aquino’s State of the Nation Address (SONA) today, [...]
Innovative Entrepreneurship is the Way to Inclusive Development 318.0
To deliver on the second of his four-part set of campaign promises, inclusive development where all participate in growth, President Aquino’s development program must go beyond the focus on public-private partnerships (PPP) in infrastructure and also incentivize opportunity-seeking in innovative entrepreneurship. Indeed, PPPs will definitely add to aggregate demand in the mathematical economic planning model, [...]
Public-Private Partnerships will Crowd Out Innovative Entrepreneurship 317.0
I believe that President Aquino administration’s focus on public-private partnerships (PPP) pushes opportunity-seeking by moneyed Filipino capitalists away from innovative entrepreneurship. In the short-term, I understand the Administration’s choice of strategy at this stage based on classical, mathematical macroeconomics. With their franchised deal set up on property-hedged infrastructure projects that are easy for project finance, [...]
