We study the transmission of monetary policy from the United States to Canada under flexible exchange rates. Our results suggest that flexible exchange rates insulate a country from foreign monetary disturbances. We find that the direct effect of a monetary contraction in the U.S. is a small...

The standard version of 'q' theory, in which investment is positively related to marginal 'q', breaks down in the presence of fixed costs of adjustment. With fixed costs, 'q' is a non-monotonic function of investment. Therefore its inverse, which is the traditional investment function, does not...

Atlanta's rail rapid transit system (MARTA), which began operations in 1979 and has cost U.S. taxpayers and residents of the Atlanta metropolitan area more than $3.5 billion (1990s), has been identified by advocates of new rail systems in other U.S. cities as one of the most successful rail...

This paper solves numerically the intertemporal consumption and portfolio choice problem of an infinitely-lived investor who faces a time-varying equity premium.

Optimal growth theory is sometices used to motivate green accounting by interpreting the "linearized" Hamiltonian at the present time as a proxy for an inclusive measure of NPP. A linearized Hamiltonian, is, in effect, an affine transformation of the utility function that makes consumption be...