AK growth model where public spending is utility-enhancing. Having characterized the macroeconomic equilibrium first we … study the impact of risk and the public sector on consumption-wealth ratio, growth and welfare, given the exogenous size of … the public sector. A higher weight of public consumption in the utility function raises the rate of growth due to a fall …

This paper analyzes the relation between international liquidity and growth for Brazil in 1966-2000. Defining the … growth with international liquidity, and then check whether the results from such a model hold up in practice. The model … external finance. Thus, in face of fluctuations in international liquidity, one should expect fluctuations in growth after a …

An extensive literature stresses that currency misalignments are costly in terms of growth performance. However, these …

The classical argument for free trade stressed the possibilities of economic growth by exploiting the gains from trade … higher growth rate. Moreover, the arguments for free trade were made against the background of an assumed hard peg (the gold …-for-one increase in the growth rate, and potential regional hegemony for the first mover. To restore balance amongst the trade partners …

measures on Bangladesh's growth process by analyzing the 1974-2007 data with the help of cointegration, error correction, and … Granger causality tests. The results suggest that long-run economic growth in Bangladesh is largely explained by investments … in both physical and human capital, trade openness, and financial as well as capital account liberalization. While the …

) or sma-ller ones (efficiency hypothesis). However, most of the research has been focused mainly on trade openness, which … to the relationship between financial openness and some key economic variables (the size of the public sector …-wealth ratio, lower growth, higher welfare, and a higher size of the public sector than in a closed economy due to the risk …

This paper analyzes the expenditure policy of the public sector and risk in a two-country stochastic AK growth model …, provided that public spending is productivity- and volatility-enhancing. First we derive the world macroeconomic equilibrium …. Then we study the impact of changes in exogenous variables on consumption, growth, and welfare. Next, we show that …

motives), in which a low-income economy enjoys a high growth rate relative to a high-income economy, thanks to importing … technologies (or 'machines') invented in the high- income economy. Following Romer (1990), the growth of an economy is sustained by … productivity advances. The model can generate the growth paths of the U.S. and the South Korea. …

. There is a growth externality in the tradable sector and agents have imperfect access to international financial markets. By … the tradable sector that boosts growth. Financial frictions generate imperfect substitutability between private and public … reserve accumulation, growth and current account surpluses. The possibility of using reserves to provide liquidity during …

. There is a growth externality in the tradable sector and agents have imperfect access to international financial markets. By … the tradable sector that boosts growth. Financial frictions generate imperfect substitutability between private and public … provide liquidity during crises amplifies the positive impact of reserve accumulation on growth. We use the model to compare …