The recent meltdown in some Asian economies highlights the urgent need of more proper measures of economic performance. Measures such as GNP growth rates alone are not good enough in revealing the true strength of an economy unless costs of capitals are also examined. In recent years, there have...

Despite these disagreements about the nature of the role of government, particularly in Taiwan and Korea, the pattern of economic growth and structural change observed in developing Asia has been broadly consistent with classical and neoclassical models of economic growth and development which...

This paper considers a neoclassical optimal growth problem where the shock that perturbs the economy in each time period is potentially unbounded on the state space. Sufficient conditions for existence, uniqueness and stability of equilibria are derived in terms of the primitives of the model...

This paper considers the extent to which fluctuations in Australian economic growth are affected by domestic and overseas economic performance. We investigate the performance of a range of non-linear models versus linear models using Bayes factors and posterior odds ratios. The posterior odds...

The current financial crisis in East ASia has posed serious pressure on China to devaluate its currency. It is argued in this paper that devaluation is not inevitable. This argument is based on an analysis of the impacts of East Asia's crisis on China's trade and foreign capital inflows. China's...

Thirwall's law posits that a country's economic growth rate (relative to that of the rest of the world) depends on a ratio of its export's income elastcity of demand to that of its imports. Empirical studies of this hypothesis have almost been entirely supportive, but we argue that the method...

This paper examines the symbiosis between financial development and human capital accumulation in generating endogenous growth. We develop a theoretical model where human capital is a key factor in the creation of financial innovations, resulting in financial development which in turns...

In Kuznets's (1955) classic paper on the relationship between economic growth and income inequality, the process of population shift from traditional to modern activities forms the basis of the theory of distributional change during the process of development. This relationship, known at...

This paper explores the channels through which innovations in the financial sector lead to economic growth. The channels identified are capital accumulation and technological innovation. The first is fulfilled by financial intermediaries which transform household savings into productive...

This paper investigates the relationship between output volatility and growth using post-war real GDP data for the United States. We expand on recent research by Beaudry and Koop (1993) documenting the asymmetric effect of recessions on output growth. The results presented in this paper suggest...