following government consumption, investment and employment shocks in a RBC and a New- Keynesian model and use part of them to … identify shocks in the data. In line with the New-Keynesian story, shocks to government consumption and investment increase …

. There is a growth externality in the tradable sector and agents have imperfect access to international financial markets. By … the tradable sector that boosts growth. Financial frictions generate imperfect substitutability between private and public … provide liquidity during crises amplifies the positive impact of reserve accumulation on growth. We use the model to compare …

with weak productivity growth. We study a two-sector, tradable and non-tradable, small open economy. The tradable sector is … the engine of growth, and productivity growth is increasing in the amount of labor employed by firms in the tradable … stagnant productivity growth. We show that capital controls can be welfare-enhancing and can be used as a second best policy …

capital accumulation and TFP growth reflect convergence along two margins. One margin (between industry) is a massive …