A key issue in monetary policy is that on the importance of following systematic behaviours. The paper revisits the classic debate on rules versus discretion focusing on the design of instrument rules in a manner that push discretionary policy choices in the direction of the commitment...

The empirical evidence suggests that there is a significant, negative relationship between inflation and economic growth. Conventional monetary growth models, however, predict a significantly smaller growth effect. This paper proposes a monetary growth model with an explicit credit service...

The endogenous technology literature usually treats human capital as proportional to the population level. As a result, it finds a linear relationship between the population size or growth rate and technological improvement. In this paper I introduce human capital investment in an endogenous...

This paper examines the responsiveness of the education and employment choices of young people in Great Britain to the level of wages currently available to them in the labour market. Our results show that among young males in particular, the probability of continued participation in full-time...

We modify a standard Baron-Myerson model by assuming that, instead of knowing the state of nature, the agent has to incur a cost, (g) , to learn it. Under these conditions, the principal will offer contracts that, depending on the value of (g), incite the agent to gather or not to gather...

Detrended Total Factor Productivity (TFP), net of changes in capital utilization, fell by 3.3% after the Korean 1997 financial crisis. Detrended real GDP per working age person fell by 11.9%. We construct a two-sector small open economy model that can account for 30.0% of the fall in TFP in...