, investment in capital goods and a non-traded good. Such an environment is rich enough to explain several phenomena that are … inexplicable in more barren models. We suggest an explanation of why saving and investment may be correlated even with no … restrictions on trade in assets. We explain why a high saving country may nonetheless borrow from abroad to finance investment. We …

savings and investment in OECD countries with perfect capital mobility? Is such an explanation empirically supportable? This … theoretical correlation between domestic savings and investment--of interest in its own right--and calibrates the model using … regression coefficients and stock market data from the US and Canada. The model accounts quite well for the observed investment-savings …

open regional economy. First, we describe the first best investment contract, we study the second best investment contract … (collateralizable income) on investment by entrepreneurs. Next, we analyze the interaction between entrepreneurs and venture capitalists … second period entrepreneurs. We show that a rise in the per capita debt has an effect on investment that is analogous to a …

open regional economy. First, we describe the first best investment contract, we study the second best investment contract … (collateralizable income) on investment by entrepreneurs. Next, we analyze the interaction between entrepreneurs and venture capitalists … second period entrepreneurs. We show that a rise in the per capita debt has an effect on investment that is analogous to a …