This paper proposes a structural approach to growth modeling relying on random return scale. An RBC-like model in which return to scale may be strictly increasing or decreasing depending on shocks is explicitly derived. We show that relevant component of usual macroeconomic models (including...

Evidence from English real wages and real land rents for the period 1500-1800 are used to evaluate the impact of temperature and precipitations on under-developed economies. Estimating key parameters of an AK-growth model, we extract Total Factor Productivity (TFP hereafter) shocks and estimate...

This paper proposes a conceptual framework to investigate the impact of military conflicts on business cycles, as well as defense policies through enrolment mechanisms. Our framework is a variation of a Real Business Cycle model first proposed by Hercowitz and Sampson (1991) that admits explicit...