Long-run economic growth is analysed in a global model with many small countriesprone to national level total factor productivity shocks. The possibility ofprecautionary saving or dissaving is a function of the higher-order moments and thecross-moments of the factor income distributions, which...

We consider the effects of an imperfectly competitive banking sector on the capital stock in a version of the two-period Diamond OLG model, focusing on how profits are returned. There are two broad alternatives: profits may be taxed and returned to households exogenously as fiscal transfers or...

The abolition or reform of unfunded pensions will generally make members of a transitional generation worse-off, because of the "double burden" of funding their own retirement along with that of paying off the unfunded pension liability. Reform will also lower the time-path of interest rates,...