This paper contains a study of stochastic stability of the development trap in a model of economic growth when the production function is subject to externalities and, as a result, the development trap steady state ins indeterminate. In the presence of indeterminacy, sunspot equilibria can...

We consider solutions to general linear dynamic systems, possibly singular and non square with general stability conditions. Besides constructing a general algorytm for finding solutions we provide necessary and sufficient conditions for existence of a solution.

The renaissance of capital-based macroeconomics belongs to the most significant scholarly developments within the field of macroeconomics in recent times. This paper was a contribution to the special 2001 symposium devoted to a critical evaluation and analysis of the recent revival of...

This paper is the sequel to chapter 30 of the 1999 first edition of The Elgar Companion to Law and Economics (ed. J. Backhaus). A new section has been added entitled 'An application of Hayekian law and economics: the comparative analysis of alternative monetary and banking regimes'.

The analogy between Hayekian monetary dynamics and the Friedman/Phelps accelerationist hypothesis is more problematic than some commentators have been prepared to admit. Hayek´s presentation of the 1930s did not produce a convincing argument in defense of the proposition that accelerating...