This article provides quantitative estimates from an econometric model of the output, price, interest rate, and exchange rate linkages among a number of countries. The linkages are examined by changing various policy variables and observing the resulting changes in the endogenous variable. The model is also used to estimate what is called the "exchanging rate effect" on inflation. One of the ways in which monetary and fiscal policies may affect a country's inflation rate is by first influencing its exchange rate, which in turn influences import prices, which in turn influence domestic prices. The model allows this exchange rate effect on inflation to be estimated.

[Noting that a suggested measure of natural resource scarcity, resource rent, is unobservable, we show that rent is linked to (observable) marginal exploration cost. A two-period model of extraction and exploration reveals that rent is equal to this cost when discovery is certain. Under risky exploration, cost data can be used to bound rent. The model also indicates how exploration uncertainty affects the competitive firm's extraction and exploration decisions. Finally, the behavior of U.S. oil and gas exploration costs suggests that these costs were rising in the postwar era, which has different implications for scarcity than indicated by other measures of scarcity.]

[It is found that the welfare gain per unit of revenue raised is maximized for an export tariff on technology transfer, followed by an import tariff on goods, with an export tariff on goods the poorest policy alternative. These results are derived within a monopolistic competition model, where the production of any good requires some initial research and development (R&D), and technology transfer occurs when R&D is done in one country for production of goods in the other. An intuitive explanation is presented, based on the public-good nature of R&D and also the elasticity of demand for technologies from firms.]

This article provides quantitative estimates from an econometric model of the output, price, interest rate, and exchange rate linkages among a number of countries. The linkages are examined by changing various policy variables and observing the resulting changes in the endogenous variable. The model is also used to estimate what is called the "exchanging rate effect" on inflation. One of the ways in which monetary and fiscal policies may affect a country's inflation rate is by first influencing its exchange rate, which in turn influences import prices, which in turn influence domestic prices. The model allows this exchange rate effect on inflation to be estimated.

Noting that a suggested measure of natural resource scarcity, resource rent, is unobservable, we show that rent is linked to (observable) marginal exploration cost. A two-period model of extraction and exploration reveals that rent is equal to this cost when discovery is certain. Under risky exploration, cost data can be used to bound rent. The model also indicates how exploration uncertainty affects the competitive firm's extraction and exploration decisions. Finally, the behavior of U.S. oil and gas exploration costs suggests that these costs were rising in the postwar era, which has different implications for scarcity than indicated by other measures of scarcity.

It is found that the welfare gain per unit of revenue raised is maximized for an export tariff on technology transfer, followed by an import tariff on goods, with an export tariff on goods the poorest policy alternative. These results are derived within a monopolistic competition model, where the production of any good requires some initial research and development (R&D), and technology transfer occurs when R&D is done in one country for production of goods in the other. An intuitive explanation is presented, based on the public-good nature of R&D and also the elasticity of demand for technologies from firms.