In this paper we use the insights of the stochastic general equilibrium growth model to help understand the effects of risk on the real, risk adjusted return to capital, capital flows, exchange rate policy, and economic growth in two Pacific Basin economies, Mexico and Indonesia, over the period...

An important implication of "new growth" models is taht they exhibit "scale effects", meaning that variations in the levels of key variables such as the investment rate, research effort, and policy variables (tax rates) exert permanent influences on national growth rates.

An important implication of "new growth" models is taht they exhibit "scale effects", meaning that variations in the levels of key variables such as the investment rate, research effort, and policy variables (tax rates) exert permanent influences on national growth rates.

In this paper we use the insights of the stochastic general equilibrium growth model to help understand the effects of risk on the real, risk adjusted return to capital, capital flows, exchange rate policy, and economic growth in two Pacific Basin economies, Mexico and Indonesia, over the period...