AK growth model where public spending is utility-enhancing. Having characterized the macroeconomic equilibrium first we … study the impact of risk and the public sector on consumption-wealth ratio, growth and welfare, given the exogenous size of … the public sector. A higher weight of public consumption in the utility function raises the rate of growth due to a fall …

This paper analyzes the expenditure policy of the public sector and risk in a two-country stochastic AK growth model …. Then we study the impact of changes in exogenous variables on consumption, growth, and welfare. Next, we show that … growth. Finally, we analyze whether more open economies are associated with a higher optimal size of the public sector. The …

motives), in which a low-income economy enjoys a high growth rate relative to a high-income economy, thanks to importing … technologies (or 'machines') invented in the high- income economy. Following Romer (1990), the growth of an economy is sustained by … productivity advances. The model can generate the growth paths of the U.S. and the South Korea. …

, contrary to a pure neoclassical model, domestic savings should act as a complement rather than a substitute to capital inflows …

offers a quantitative evaluation of neoclassical models of growth with collateral constraints. Previous work has found … driven by domestic scarcity --- and the role of domestic savings --- they act as complements rather than substitutes to … play a more important role than suggested by the recent literature on growth, even in a world with limited financial …

distribution, growth and international specialization. The model is explored both for the steady- state properties and the … transitory dynamics of integrated economies. Income inequality affects the patterns of growth and international specialization as …

. Using this model, I demonstrate how a positive investment-saving correlation can arise in a world with endogenous fiscal … capital mobility. This implies that the observed investment- saving comovement is not necessarily due to imperfect capital … investment. Empirical examination of this prediction indicates that U.S. time series data is compatible with the hypothesis of …