The determination of long-run aggregate supply is a feature which short-run models of macroeconomic policy coordination tend to neglect but which has implications for the setting of interest rates. In this paper, the authors develop an open-economy model of output maximization, where investment...

In this paper we investigate the ability of a number of different ordered probit models to predict ratings based on firm-specific data on business and financial risks. We investigate models based on momentum, drift and ageing and compare them against alternatives that take into account the...