scarcity of saving in LATAM, thereby increasing investment and growth. Yet, the data and several case studies suggest that the … gains from external financing are overrated. The bottleneck inhibiting economic growth is less the scarcity of saving, and … saving and investment rates tends to be a time consuming process. This also suggests that greater political instability and …

prices with investment and production. We use the model to calculate theoretical covariances between investment, the current … stochastic processes on disturbances to productivity and monetary growth rates. International capital flows arise from changes in … flows, exchange rates, investment, and the terms of trade are critically dependent on optimal portfolio allocations and the …

decentralized economy undertakes too little or too much R&D. We develop an endogenous growth model that incorporates parametrically … congestion externalities. We show that our model is consistent with the available evidence on R&D, growth, and markups …

expanding capital have come from the output of the existing capital. An endogenous growth model can explain the basic facts …

The Modified Golden Rule, which relates the rate of return on capital and the growth rate of the capital stock along … long-run growth paths that maximize the utility of a representative infinitely-lived consumer, is invariant to the … introduction of convex capital adjustment costs. Therefore, along balanced growth paths in neoclassical optimal growth models with …

. I then offer an endogenous growth model with a menu of technologies where equilibrium involves choices over both the … extent of automation and the rate of growth of labor-augmenting productivity. In this framework, capital accumulation and … technological change in the long run are associated with wage growth, but an increase in the saving rate increases the extent of …

. Otherwise, there exists a stable balanced growth path in which the two types of innovations go hand-in-hand. Stability is a …

This paper studies investment in Latin America and explores the relationships of investment with growth, exchange rates … depreciating real exchange rate while the real price of capital slowly recovers. The paper explores the determinants of investment … decline in private investment shares in Latin America during the 1980s seems to result from the deterioration in the terms of …