In this paper we use the insights of the stochastic general equilibrium growth model to help understand the effects of risk on the real, risk adjusted return to capital, capital flows, exchange rate policy, and economic growth in two Pacific Basin economies, Mexico and Indonesia, over the period...

We analyze the structural determinants of two widely used measures of price discovery between multiple markets that trade closely-related securities. Using a structural cointegration model, we show that both the information share (IS) and component share (CS) measures account for the relative...