test for cointegrating relationships corresponding to the patterns predicted by theory. We identify two types of regime …

adequate regulation, intermediation may fail to do this. This paper studies the effects of a production shock in a closed … economy and compares abilities of market-based and bank-based financial systems in processing the shock. Unregulated banking …

country due to the intertemporal terms-of-trade effect. In contrast to the case of trade theory, this intertemporal … habits ; habit differentials ; immiserizing growth ; two country model ; global shock ; country-specific shock …

Should the government run fiscal deficits in response to an adverse external shock that warrants transfer of resources …

shocks have a very persistent effect on real activity. In determining the speed of recovery from an adverse economic shock …, the most important factor is the extent to which the shock erodes entrepreneurial wealth. …