A competitive stock market is embedded into a neoclassical growth economy to analyze the interplay between the … economic growth by raising total factor productivity, but its impact is only transitory. Several predictions on the evolution …

. On the basis of observed growth in sectoral value added output, we calculate for each state the efficient frontier for …. We study how rapidly different states converge to an efficient allocation, depending on access to finance. We find that … volatility of state output growth, rather than in its average. The realized industry shares of output also converge faster to …

. Growth is sustained by the development of new varieties of intermediate goods. Innovation is risky and the probability of … risk premium required by risk-averse researchers. Natural forward and backward links arise between finance and innovation … faster growth. Under plausible assumptions, the resulting changes in factor prices lower the relative cost of monitoring …

. On the basis of observed growth in sectoral value-added output, we calculate for each state the efficient frontier for … to finance. We find that convergence is faster - in terms of distance to the efficient frontier and improving Sharpe … primarily from convergence in the volatility of state output growth, rather than in its average. The realized industry shares of …

saving rate; (ii) strengthen the effect of growth on saving; and (iii) increase the growth rate if productivity growth is … endogenous. These propositions are supported by cross-country regressions of saving and growth rates on indicators of liquidity … further reduction in saving and growth rates. …

the context of two partial equilibrium endogenous growth models. In our first model, the scale of fickle outside … investment funds traces out a mean-variance tradeoff for the growth rate of the economy. In particular, the volatility of these … regulation of outside investment may increase growth. Our second model involves increasing returns and multiple equilibria. In …

steady states arise because rents to human capital are self perpetuating. Inequality in abilities may be good for growth … also good for growth because it gives the young property rights over their own human capital, which are thus equivalent to …

We use data from over 20,000 firms in 60 countries to identify constraints on the growth of firms. We interpret …