The paper outlines a two-country Cambridge model of growth and distribution. The condition for the Cambridge equation to apply to the world economy is outlined. When this is satisfied, a dual theorem holds in one of the two countries, and the country with the greater aggregate savings ratio is...

We examine the relationship between inflation and inflation uncertainty using a GARCH model that allows for simultaneous feedback between the conditional mean and variance of inflation. We also derive a number of theoretical econometric results and illustrate the relevance of these results with...

Commonly used linear-quadratic solution methods to nonlinear models are described in detail using a closed economy real business cycle model as an illustration. We find that all method yield identical coefficients on optimal decision rules. Some methods are easier to use in economies where...