A dynamic stochastic model of a small open economy with a two-level banking intermediation structure, a risk-sensitive regulatory capital regime, and imperfect capital mobility is developed. Firms borrow from a domestic bank and the bank borrows on world capital markets, in both cases subject to...

This paper applies a business cycle dating algorithm to monthly North West county and local authority district claimant count data to assess turning points in the economic cycle of sub-regions. We date the transition of all districts of the North West into recession beginning in June 2007. By...

In a simple, forward looking linear stochastic model we investigate the impact of heterogeneity in expectations formation on the speed of convergence of the learning process of agents towards equilibrium. We …nd that even when heterogeneity does not a¤ect learnability in term of its...