Replacing investment shares in GDP by growth rates of capital stock, this paper first shows that cross-country regressions can explain East Asian high rates of economic growth remarkable well. The result is observationally consistent with recent growth accounting studies which proposed that...

This paper investigates how some intrinsic uncertainty will affect the existence of sunspot equilibria and deterministic cycles in a simple overlapping generations model. In the model, there exists an intrinsic uncertainty under which each individual independently has a small probability of...

The purpose of this paper is to investigate how the existence of near-rational agents will affect the existence of sunspots in a simple overlapping generations model of fiat money. In the model, near-rational agents are irrational in the sense that they do not literally maximize all the time....