Multicollinearity is one of the major methodological problems in the study of the guns‐growth trade-off. In this paper, we use ridge regression to separate the effects of individual variables influencing economic growth in the United States. Ridge is not a new method, but to the best of our...

Despite the vast number of studies of the guns-butter trade-off, we still do not know whether guns come at the expense of butter. In this article we attempt to clarify some of the major conceptual, measurement and statistical problems associated with this line of research

Studies of the guns versus butter trade-off found no evidence for the existence of a trade-off in the pre-Reagan era (see Russett 1982; Domke, Eichenberg, and Kelleher 1983; Mintz 1989). This study extends prior research by examining not only the direct, immediate effects of defense spending but also...

This paper introduces the probabilistic formulation of continuous-time economic models: forward stochastic differential equations (SDE) govern the dynamics of backward-looking variables, and backward SDEs capture that of forward-looking variables. Deep learning streamlines the search for the...

One of the premises of democratization is that political parties are able to contest in elections. As local governments are able to control a large amount of resources, the results of local elections can be crucial to a party's prospects in national elections. In Taiwan, local elections used to...

It is generally agreed that when a relatively low-profile election is held simultaneously with a high-profile election, voter turnout rate of the former tends to be higher than it would be if it were held separately. The central concern of this study is twofold. The first one is to estimate the...

This paper introduces the probabilistic formulation of continuous-time economic models: forward stochastic differential equations (SDE) govern the dynamics of backward-looking variables, and backward SDEs capture that of forward-looking variables. Deep learning streamlines the search for the...

In this paper, I build a continuous-time macro-finance model in which firms can access both bond credit and bank credit. The model captures the simple idea that the presence of bond financing lowers the price elasticity of demand for bank loans. I find that the optimal capital adequacy ratio is...

This paper introduces the probabilistic formulation of continuous-time economic models: forward stochastic differential equations (SDE) govern the dynamics of backward-looking variables, and backward SDEs capture that of forward-looking variables. Deep learning streamlines the search for the...