This paper analyzes the effects of transitory productivity shocks on long-run output. The study demonstrates that, despite it transitory nature, an adverse productivity shock may result in lower long-run output. A fall in productivity reduces output and savings and, consequently, the interest...

This paper analyzes strategies for economic growth in a small, open, overlapping-generations economy that has access to perfect international capital markets and is characterized in autarky by multiple, locally stable, stationary equilibria. The study designs a growth scheme consisting of...

This paper suggests that the recent intertemporal studies concerning the implications of terms-of-trade deterioration on the current account of a small open economy may suffer from significant methodological deficiencies. The study demonstrates that, while the assumption of a small open economy...

This chapter examines the process of development from an epoch of Malthusian stagnation to a state of sustained economic growth. The analysis focuses on recently advanced unified growth theories that capture the intricate evolution of income per capita, technology, and population over the entire...

The demographic transition that swept the world in the course of the last century has been identified as one of the prime forces in the transition from stagnation to growth. The unprecedented increase in population growth during the early stages of industrialization was ultimately reversed and...

This paper analyzes the welfare implications of an import tariff for a small overlapping-generations economy. The study analyzes the role of income redistribution, induced by the imposition of a tariff, in the determination of the time path of welfare levels. It is shown that despite...