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Economic Freedom and the Business Cycle: The Egyptian Experience

Listed author(s):
  • Mikhail Ossama

    (University of Central Florida)

Registered author(s):

    Most studies that emphasize and encourage the shift towards a less regulated and financially open system rest on the premise of a prosperous growth prospect. Accordingly, interests have focused on growth models as a framework to understand and to analyze the effects of economic freedom. This paper investigates the short-run characteristics of economic freedom. Using a stochastic general equilibrium framework, it is argued that economic reforms tend to ease periods of recession, increase welfare and alleviate the burden of unemployment. Calibrated to the Egyptian economy, the model is simulated and the (robust) relationship between economic reforms and the business cycle is investigated.

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    Article provided by De Gruyter in its journal Review of Middle East Economics and Finance.

    Volume (Year): 3 (2005)
    Issue (Month): 1 (April)
    Pages: 1-19

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    Handle: RePEc:bpj:rmeecf:v:3:y:2005:i:1:n:1
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    1. Rafael LaPorta & Florencio Lopez de-Silanes & Andrei Shleifer & Robert W. Vishny, 1996. "Law and Finance," Harvard Institute of Economic Research Working Papers 1768, Harvard - Institute of Economic Research.
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