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Below is the schedule for the Economics Seminar Series for the academic year 2011-2012, along with the abstract for each seminar. A downloadable version of the full schedule can be found here.
UAE Labor Market under the Economic Crisis
Topics that will be discussed include: Demographics and labor market in the UAE; Effect of crisis on labor in the private sector; What if the economic crisis never happened?; Labor under Knowledge-based Economy?
A Tacit Monetary Policy of the Gulf Countries: Is There a Remittances Channel?
The strong economic ties between the GCC economies and the US are manifested in three ways: currency peg, coupling of monetary policy and the adoption of the US dollar as the trading currency for oil. This paper examines how these dynamics result in misalignment of the US monetary policy with the business cycles of the GCC economies. The study analyzes how the staggering amount of remittances from the GCC economies plays a stabilizing role as a tacit monetary policy tool. Incorporating remittances in the money demand equation results in a more robust model than otherwise.
The Quest for a Safe Haven: Terrorism and the Feldstein-Horioka Paradox
Can terrorism explain the paradox in the exiting literature about why capital is more mobile in developing countries than in developed ones, even though the former are less open? Using Feldstein and Horioka's (1980) methodology, this paper examines the impact of terrorism incidents and casualties on capital mobility in developing countries over 1976-2007. Our robust findings suggest that in closed economies, all types of terrorism decreases capital mobility, whereas even minimal globalization totally offsets this effect. This implies that: (i) uncertainties about future income caused by terrorism induce more precautionary savings; and (ii) given escape routes as a result of world markets integrations, capital does leave domestic boundaries to seek safe havens abroad. At least partially, this study unfolds the paradox in the Feldstein-Horioka literature; which, in fact, Adam Smith also hinted at more than 200 years ago.