Do more open financial economies grow faster? The short answer is yes, as long as certain policies are in place. This paper extends previous studies by analyzing how different legal protections interact with each other and with initial wealth to allow financial openness to enhance growth. I...

The notion that time is relative has been widely accepted by physicists since Albert Einstein formulated his theory of relativity in 1905. However, many other scientific disciplines, like finance and economics, have thus far disregarded relativistic time concepts. In this paper, I show how a...

This paper proposes a model that links households and firms, as usual, by markets for factors and goods and, additionally, by a banking sector that channels households' funds to firms and eliminates idiosyncratic risk. In equilibrium, agency costs and tax benefits of corporate debt are...

This paper applies a yield curve model that separates expectations and volatility components of market yields on default-free bonds. Expected future riskless rates derived from the model are unbiased, reasonably accurate indicators of subsequent actual riskless rates for periods up to three...