This paper constructs a two-country stochastic growth model in which neutraland investment-specic technology shocks are nonstationary but cointegrated acrosseconomies. It uses this model to interpret data showing that while real investmenthas grown faster than real consumption in the United...

This paper addresses the question of sectoral specialisation mechanisms and effects on growth rate differences providing an alternative approach to endogenous growth processes. The framework we choose draws on the Kaldorian cumulative causation approach to growth and the evolutionary modelling...

This paper demonstrates how both quantitative and qualitative results of general, analytically tractable asset-pricing model in which heterogeneous agents behave consistently with a constant relative risk aversion assumption can be applied to the particular case of "linear" investment choices....