This paper examines growth forecasts of models that allow for crosscountry interactions and/or a time-varying variance plus feedback from volatility to growth. Allowing for these issues is done by augmenting an autoregressive model with cross-country weighted averages of growth and/or the...

This paper analyses optimal income taxation over the business cycle for households di¤erentiated by labour skill, income and wealth. A model incorporating capital-skill complementarity in production and di¤erential access to labour and capital markets is developed to capture the cyclical...

This paper examines the role of institutions in the nexus between public spending and economic growth. Using a newly assembled dataset of 80 countries over the 1970-2010 period, we show that only when institutions prompt governments to be accountable to the general citizen does the capital...