One traditional argument in favor of bank reserve requirements holds that since a b ank and its depositors are asymmetrically informed as to the bank's reserve position and its portfolio, the bank will hold too few reserves and too risky a port folio. This being the case, presumably a central...

This paper investigates a model of military conflict between two regimes in which each may initiate combat in order to confiscate resources from the other. Conflict, or the potential for same, results in wasteful military spending which lowers growth for each regime. Equilibrium military...

The authors consider a neoclassical growth model with risky investment projects in which a borrower's (an investor's) risk type is private information. Their innovation is to determine jointly the equilibrium loan contract and the economy's growth path and the steady state capital stock. The...

Limited participation models explain a short-run liquidity effect as arising from the redistribution of income from non-participants in the bond market to participants in the bond market. However, these models also imply that the liquidity effect is smaller the larger is long-run money growth....

Technological progress, human capital, and tax policies play an important role in growth. Recent models of endogenous growth based on technological progress predict that high technological progress and growth are associated with a high relative supply of skilled workers who earn constant or...

New Zealand experienced dramatic restructuring programsafter the Labor party won the national elections in 1984.Deregulation of price controls, removal of the log exportban, and privatization of public assets were the mainshocks to the forest sector. The purpose of this paper isto analyze the...

Most of empirical modeling involves the use of Ordinary Least Squares regression where the residuals are assumed normal, independent, and identically distributed. In finite samples, these assumptions becomes critical for accurate estimations, however, in macroeconomics in particular, these...