This paper presents a theoretical link between the yield curve and future economic growth in a simple stochastic growth model. The derived relationship implies that, in a simple competitive production economy, the slope of the yield curve predicts future output growth. This predictive content of...

The problem of close-packed dimers on the honeycomb lattice was solved by Kasteleyn in 1963. Here we extend the solution to include interactions between neighboring dimers in two spatial lattice directions. The solution is obtained by using the method of Bethe ansatz and by converting the dimer...