predictions of interest rates based on a general equilibrium theory are partially consistent with US data"--Federal Reserve Bank …

explained by the standard general equilibrium theory if consumption demand is treated as the primary source of aggregate …

We study the effects of money (anticipated inflation) on capital formation. Previous papers on this topic adopt reduced …-form literature. The analysis reduces the previously large gap between mainstream macro and monetary theory. …

We introduce adaptive learning behavior into a general equilibrium lifecycle economy with capital accumulation. Agents … form forecasts of the rate of return to capital assets using least squares autoregressions on past data. We show that, in … persistent excess volatility in returns to capital. We explore a quantitative case for these learning equilibria. We use an …

The standard measures of nominal capital formation show the United States investing a proportion of GDP much lower than … have been coming closer and closer to those of the other countries. A broader measure of capital formation, more consonant … investing an above average share of total output in the most recent period 1990-1994. Real capital formation per capita and per …

that can be used to produce government capital. For a reasonable calibration, we find that government spending increases in … larger the costs that the economy faces to reallocate resources (capital and labor) across sectors, the smaller the optimal …