Anderson Grajales-Olarte, Franz Hamann, Sara Naranjo-Saldarriaga, José Pulido
{"title":"Policy implications of losing credibility: Lessons from Colombia’s post-pandemic inflation","authors":"Anderson Grajales-Olarte, Franz Hamann, Sara Naranjo-Saldarriaga, José Pulido","doi":"10.1016/j.jpolmod.2026.107064","DOIUrl":"10.1016/j.jpolmod.2026.107064","url":null,"abstract":"<div><div>Inflationary surges, such as those experienced in the aftermath of the COVID-19 pandemic, can undermine the credibility of central bank inflation targets. Using survey data, we test for credibility losses in Colombia and assess their magnitude. We then use these estimates to inform a Bayesian estimation of a monetary policy model in which credibility is endogenous and depends on the central bank’s past performance in achieving its inflation target. We implement our framework within one of the main semi-structural models for monetary policy analysis in the country, the 4GM-model (Gonzalez et al., 2020). Our findings indicate that the post-pandemic inflationary surge in Colombia constitutes the episode with the largest credibility loss in recent decades, and that such episodes tend to make inflation stabilization policies more costly in terms of output.</div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"48 4","pages":"Article 107064"},"PeriodicalIF":2.8,"publicationDate":"2026-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148478550","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Macroeconomic and sectoral effects of subsidies to smaller enterprises: The experience in Peru","authors":"E.R. Huamaní, M.A. Tamayo","doi":"10.1016/j.jpolmod.2025.06.004","DOIUrl":"10.1016/j.jpolmod.2025.06.004","url":null,"abstract":"<div><div>This study uses a general equilibrium<span><span> model to assess the macroeconomic and sectoral effects of a subsidy for industrial </span>MSMEs<span> integration (SIMI) in Peru. The findings show that SIMI reduces the cost of manufacturing MSME-produced inputs, encouraging domestic firms to source from these enterprises instead of relying on imports or larger competitors, thereby addressing demand-side constraints. This cost reduction increases MSMEs’ input sales, expanding their domestic market presence, while larger industries<span><span><span> shift towards international markets to leverage their improved competitiveness. The analysis identifies a pronounced expansion in the manufacturing and tertiary sectors as a result of SIMI, while the primary sector experiences a contraction due to its comparatively lower reliance on manufactured inputs. Furthermore, the study highlights that SIMI’s efficacy depends on the degree of substitutability between inputs produced by </span>MSMEs and large enterprises, as a higher degree of substitutability fosters deeper MSME integration and accelerates industrial growth. Finally, while SIMI fosters economic growth and bolsters national competitiveness, its implementation raises critical fiscal </span>sustainability concerns, necessitating judicious policy design and complementary measures to ensure long-term viability.</span></span></span></div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"48 4","pages":"Article 106971"},"PeriodicalIF":2.8,"publicationDate":"2026-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148478553","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ahmed Samour, Stephen Kelechi Dimnwobi, Brahim Bergougui
{"title":"Sustainable growth in South Africa through the asymmetric effects of oil prices and economic policy uncertainty","authors":"Ahmed Samour, Stephen Kelechi Dimnwobi, Brahim Bergougui","doi":"10.1016/j.jpolmod.2025.12.004","DOIUrl":"10.1016/j.jpolmod.2025.12.004","url":null,"abstract":"<div><div>Economic policy uncertainty (EPU) and oil price shocks can have a substantial influence on economic development, nevertheless their asymmetrical impacts on green economic growth are not widely investigated. Therefore, this study examines the asymmetric effect oil price and EPU on green economic growth using advanced nonlinear techniques, and quarterly data from 1990Q1 to 2020Q4. The empirical findings show that higher oil price induce a decline in green economic growth, while a decrease in oil price promotes green economic growth. On the other hand, the study found that an increase in EPU has positive and significant effect on green economic growth while a decline in EPU has an adverse and substantial impact on sustainable economic growth. These outcomes highlight the need for decisionmakers in South Africa to effectively leverage rising policy uncertainty to promote green growth while decreasing oil reliance to mitigate the negative influence of higher oil prices and capitalize on the benefits of falling prices.</div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"48 4","pages":"Article 107023"},"PeriodicalIF":2.8,"publicationDate":"2026-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148478583","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Caught in the crossfire: Livelihood, employment and forced displacement in Nigeria","authors":"Jamilu Babangida, Anita Staneva, Parvinder Kler","doi":"10.1016/j.jpolmod.2026.107040","DOIUrl":"10.1016/j.jpolmod.2026.107040","url":null,"abstract":"<div><div>Considering sex differences of household heads, this study examines the livelihood opportunities and labour market outcomes of displaced individuals using the 2018 World Bank data on the profile of Internally Displaced Persons (IDPs) in North-East Nigeria. Our logistic and Probability score matching (PSM) results suggest that forcibly displaced female-headed households are more likely to be self-employed in non-farm activities. The estimates reveal a decrease in male-headed households’ farm employment due to forced displacement. Additionally, the results show no noticeable impact on labour force participation among IDPs. We highlight the critical role of informal employment as a buffer against displacement.</div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"48 3","pages":"Article 107040"},"PeriodicalIF":3.1,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147994744","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Temporal asymmetries in monetary transmission: Implications for interest rate policies","authors":"Piero Garcia , Ricardo Quineche , Juan Zapata","doi":"10.1016/j.jpolmod.2026.107045","DOIUrl":"10.1016/j.jpolmod.2026.107045","url":null,"abstract":"<div><div>When calibrating interest rate adjustments, central banks rely on models that treat tightening and easing as mirror images — yet transmission mechanisms may differ fundamentally across policy directions and time horizons. Using monthly U.S. data (1994–2024) and the NARDL framework, we document a systematic temporal reversal: Treasury yields at short-to-intermediate maturities respond more strongly to rate hikes in the short run, but this reverses in the long run where cuts generate greater ultimate adjustment, with asymmetry strengthening across the maturity spectrum. This temporal reversal is robust across crisis episodes, credit risk controls, and unconventional policy periods. Findings provide concrete advisory guidance: during easing cycles, policymakers should front-load cuts or sustain accommodation to offset delayed transmission; during tightening, lower long-run pass-through relative to easing implies larger hikes may be needed to achieve equivalent ultimate impact on yields. Differentiated communication strategies are warranted across policy cycle phases.</div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"48 3","pages":"Article 107045"},"PeriodicalIF":3.1,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147994748","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Inequality of opportunity in education: Insights on native and immigrant students in France","authors":"Raffaele Lagravinese , Adèle Verron","doi":"10.1016/j.jpolmod.2026.107051","DOIUrl":"10.1016/j.jpolmod.2026.107051","url":null,"abstract":"<div><div>This paper investigates the educational inequality of opportunity (EIoP) between native and immigrant students in France before and during the pandemic using data from the 2018 and 2022 cycles of the Programme for International Student Assessment (PISA). By applying the Oaxaca- Blinder decomposition technique, the study also identifies the key factors contributing to educational disparities, focusing on individual characteristics, socioeconomic background and home environment. The results show that immigrant students consistently underperform compared to native students across all subjects, with the largest gaps observed in science and reading. However, it seems that France’s proactive response, particularly the quick return of students to school, helped prevent the deepening of the pre-existing gap in educational performance be- tween these two groups. Despite this intervention, pre-existing EIoP persisted, driven by systemic factors such as language proficiency and reading access, which remained unaffected by the pandemic. These deeply embedded factors continued to shape EIoP in France, even in the face of a significant shock like COVID-19. Additionally, the analysis reveals that EIoP are influenced by school location, with students in urban areas generally performing better than those in rural areas.</div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"48 3","pages":"Article 107051"},"PeriodicalIF":3.1,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147994694","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mohammad Salahuddin , Khairul Alom , Delwar Akbar , William Wei , Mehe Z. Rahman
{"title":"Trump's tariff flip-flops and potential effects on Canada's economic growth","authors":"Mohammad Salahuddin , Khairul Alom , Delwar Akbar , William Wei , Mehe Z. Rahman","doi":"10.1016/j.jpolmod.2026.107050","DOIUrl":"10.1016/j.jpolmod.2026.107050","url":null,"abstract":"<div><div>This study attempts to forecast the potential economic growth effect of President Trump's tariff measures on the Canadian economy. To achieve this objective, it undertook a series of analytical procedures ranging from econometric estimations to model simulation. Econometric estimates (Dynamic ARDL) indicate that Canada's exports to the USA affect its economic growth. Findings were robust from DOLS estimation. Toda Yamamoto causality tests confirmed causal connectedness between them. The International Trade Closeness model shows that despite losing trade flexibility during the former Trump administration, Canadian exports to the United States were not significantly affected. Results from the Forest Simulation method provide predictions of response to tariffs on Canadian exports to the USA across multiple potential tariff scenarios ranging from 15% to 50%. Under a minimum 15% tariff rate, total exports are likely to be the highest at 58.91 units. However, if US tariffs on Canadian exports keep rising, exports are expected to decline steadily across all categories, with total exports likely to fall to 34.65 units under a 50% tariff. Canada’s retaliatory move on its imports from the USA is expected to impact its economy. A 40% tariff is expected to lead to a nearly 30% contraction in import volume. Policy implications and recommendations are discussed.</div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"48 3","pages":"Article 107050"},"PeriodicalIF":3.1,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147994743","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Marco Sforza , Cristina Vaquero-Piñeiro , Luca Salvatici
{"title":"A review of approaches to modelling agricultural emissions","authors":"Marco Sforza , Cristina Vaquero-Piñeiro , Luca Salvatici","doi":"10.1016/j.jpolmod.2026.107049","DOIUrl":"10.1016/j.jpolmod.2026.107049","url":null,"abstract":"<div><div>Agricultural greenhouse gas (GHG) emissions are a cornerstone of the global sustainability challenge, yet modelling their impacts for effective policy design remains complex and lacks consensus. This paper provides a comparative assessment of eight prominent simulation equilibrium models, focusing on how modellers consider agricultural greenhouse gas emissions, offering policymakers essential insights into the choice of economic tools for advising mitigation strategies. As the agricultural sector faces increasing pressure from rising emissions and new regulatory frameworks, models must evolve to capture the multi-layered interactions between regulatory and trade frameworks. The review highlights a modelling landscape where divergent treatments of agricultural inputs (land, capital, intermediate goods, and technology) lead to heterogeneous simulation results. Key findings suggest that reliance on exogenous emission coefficients and a lack of granularity in capital measurement may bias policy outcomes. For regulators, bridging these methodological gaps is critical for designing “leakage-proof” policies balancing ambitious climate targets with economic resilience and food security. Finally, more comprehensive data and interdisciplinary dialogue are required to ensure that agrifood policies are grounded in realistic, harmonised simulations.</div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"48 3","pages":"Article 107049"},"PeriodicalIF":3.1,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147994745","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Alhassane Camara , Luis-Gonzalo Llosa , Babatunde Abidoye , Carlos De Los Rios , Pablo Lavado
{"title":"Bridging the gap: Peru’s path towards achieving the SDGs","authors":"Alhassane Camara , Luis-Gonzalo Llosa , Babatunde Abidoye , Carlos De Los Rios , Pablo Lavado","doi":"10.1016/j.jpolmod.2026.107048","DOIUrl":"10.1016/j.jpolmod.2026.107048","url":null,"abstract":"<div><div>This paper analyzes the potential impact of policy interventions on the achievement of the Sustainable Development Goals (SDGs) in Peru. A macro-micro modeling approach, linking a dynamic recursive Computable General Equilibrium (CGE) model, an econometric micro-simulation model and a human capital model, is used to assess the effects of increased public investment in infrastructure, education, and health, along with improvements in public sector efficiency. The results show that maintaining past public spending trends would lead to limited progress in achieving several SDGs. However, strategically increasing public investment can significantly improve educational outcomes, reduce poverty, and enhance economic growth and productivity. The study also highlights the importance of public sector efficiency and external financing to maximize the impact of SDG-focused investments.</div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"48 3","pages":"Article 107048"},"PeriodicalIF":3.1,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147994742","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Corporate margins and inflation during the post COVID-19 period in the Euro Area","authors":"Mirko Licchetta, Giovanni Mattozzi","doi":"10.1016/j.jpolmod.2025.12.003","DOIUrl":"10.1016/j.jpolmod.2025.12.003","url":null,"abstract":"","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"48 3","pages":"Article 107020"},"PeriodicalIF":3.1,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147994755","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}