We propose a simple and powerful method for determining the transition processin continuous-time DSGE models under Poisson uncertainty numerically. The idea isto transform the system of stochastic dierential equations into a system of functionaldierential equations of the retarded type. We then...

In this paper, we experimentally test the Modigliani-Miller theorem. Applying ageneral equilibrium approach and not allowing for arbitrage among ¯rms with differ-ent capital structure, we are able to address a question fundamental to the valuationof firms: does capital structure affect the...

The paper enquires into the relationship between economic inequality and economic growth, but different from others, it also studies the relationship between inequality and economic growth in the situation where consideration of effect of factor movement is included. The paper tends to answer...

The paper enquires into the e¤ects of China’s entry into the WTO on its economic growth. We find that even in the short run (2001-2005), economic performance can be improved due to obtaining higher survival probability of economic growth rate and better protection of consumer welfare.

This paper deals with endogenous determination of effort as a source of productivity growth.

This paper investigates the growth factors of EU regions in the 1990s. We test the hypothesis that regional growth is determined by endogenous growth factors, trade and technological catching-up in a growth accounting framework....

The paper enquires into the short run effect (2001-2005) of China’s entry into the WTO on its economic growth. We conclude there is no economic hazard with a …nding that China’s economy would enjoy a higher survival probability of economic growth rate and better protection of consumer...

This paper studies a overlapping generations economy with capital where limitedcommunication and stochastic relocation create an endogenous transactions role for…at money. We assume a production function with a knowledge-externality (Romer-style) that nests economies with endogenous growth (AK...

Chakraborty [Journal of Economic Theory, 2004] introduces endogenousmortality in a two period overlapping generations model by postulating thatthe probability of surviving from the first period to the second depends on taxfundedpublic health. His central result on the existence of multiple...