sector development acts as a shock-absorber in poor countries, dampening the transmission of terms of trade shocks to growth … volatility. Expanding the sample to 121 developing countries confirms this result, although this role of shock-absorber fades … away as economies grow richer. Stock market development, by contrast, appears neither to be a shock-absorber nor a shock …

vulnerable to financial frictions. By sheltering intangible investment from financial shocks, counter-cyclical macroeconomic … policy through the intangible investment channel, and its complementarity with pro-competition product market deregulation …

to investment and growth, they reduce the government's ability to increase supporters' consumption. The model predicts … that resource abundance is conductive to poor policies and, consequently, to low investment. The implications of the model …

We introduce a new suite of macroeconomic models that extend and complement the Debt, Investment, and Growth (DIG …'s properties by analyzing the growth, debt, and distributional consequences of big-push public investment programs with different … mixes of investment in human capital and infrastructure. We show that investment in human capital is much more effective …

individuals out of poverty — has become too reliant on credit and investment, and has begun to experience diminishing returns …

This paper examines how financial development affects the sources of growth-productivity and investment-using a sample …, investment, and productivity. The relationship is more complex. The influence of the different dimensions of financial …

price decline. By contrast, there is only a weak positive effect on sectoral employment, and investment is essentially …