This paper discusses generation asset valuation in a framework where capital utilization decisions are endogenous. We use real options approach for valuation of natural gas fuelled turbines. Capital utilization choices that we explore include turning on/off the unit, operating the unit at...

In construction projects, contingency is the budget which is made available to cope with uncertainties that would incur schedule and cost overruns. Contingency estimation requires considering project cost, schedule and technology variability. The effect of dynamic project management of the...

This article focuses on the empirical approach proposed by Hall and Jones (1999) to estimate the effect of what they call ‘social infrastructure’ on productivity across countries. We consider the issue of weak identification in their linear instrumental variables model. The evidence obtained...

Kehoe and Perri (2002) show that a two-country business cycle model with endogenously incomplete markets helps to resolve the 'international co-movement puzzle' (Baxter 1995) and the 'quantity anomaly' (Backus, Kehoe and Kydland 1992, 1995). We claim that a similar performance can be achieved...

This paper examines the effect on economic growth and welfare of the access to external financing which results in technological transfers to a developing country from the rest of the world. We consider a two-sector stochastic growth model and compute optimal accumulation mechanisms in the...

Evidence shows that there are substantial rich-to-poor international capital flows although not as abundant as differences in rates of return would suggest. These flows are procylcical: abundant in good times and scarce in bad times. Conventional growth models face certain difficulties in...