This paper re-examines the empirical relationship between financial development and economic growth. It presents evidence based on an updated data set, a variety of econometric methods and two standard measures of financial development: the level of liquid liabilities of the banking system and...

Long-run economic growth is analysed in a global model with many small countriesprone to national level total factor productivity shocks. The possibility ofprecautionary saving or dissaving is a function of the higher-order moments and thecross-moments of the factor income distributions, which...

This paper analyses a model of overlapping generations in which agents who do notparticipate in the labor market are unable to borrow. Thus an increase in a fullyfunded pension raises aggregate savings even with a fixed participation rate, sinceprivate savings are not crowded out one-for-one....