This paper develops a multi-sector, small open economy Dynamic Stochastic General Equilibrium model, which includes the accumulation of human capital, built via public expenditures in education and health. Four possible fiscal rules are examined for total public investment in infrastructure,...

We use the Coakley, Kulasi and Smith (1996) current account solvency model to investigate saving and investment in LDCs. This model implies that saving and investment cointegrate with a unit coefficient irrespective of the degree of capital mobility. Our panel and conventional unit root tests...

This paper considers the interpretation of the empirical results of the developing literature on the demand for military spending that specifies a general model with arms race and spill-over effects and estimates it on cross-section and panel data. It questions whether it is meaningful to talk...