The balanced growth restrictions implied by the neoclassical growth model imply that output, the private capital stock and the public capital stock share the same stochastic trend. We analyse the postwar US data on real output, real private capital stock and real public capital stock and find...

The authors find strongly non-Ricardian results when they reestimate Paul Evans's (1988) model using a better approximation of the market value of wealth. The authors also examine the long-run properties of the data and find results consistent with their regression evidence when they allow for...

This paper explains the wage-growth slowdown that occurred in the U.S. in the 1980s. Using the vector autoregression method, it is shown that (1) a substantial portion of variations in the growth rate of average hourly earnings and other sectoral wages in the U.S. can be attributed to...