We study the process of growth and business cycles in an open economy which has access to international ¯nancial … cycle dynamics. Financial market imperfections help in replicating the empirical fact that output growth shows positive …

trade on growth and on welfare for two countries equal in all aspects, except for the quality of credit markets. We show … that opening to trade increases growth in the country with better credit markets (North) and decreases it in the other …

uncertainty, a stochastic dynamic growth model with the public sector is examined. It is shown that deterministic excessive red … tape and corruption deteriorate the growth potential through income redistribution and public sector inefficiencies. Most … accumulation, thus leading to lower growth rates. …

uncertainty, a stochastic dynamic growth model with the public sector is examined. It is shown that deterministic excessive red … tape and corruption deteriorate the growth potential through income redistribution and public sector inefficiencies. Most … accumulation, thus leading to lower growth rates. …

information via 8-Ks. Next, using INF, we find evidence of managerial learning from stock prices, as the sensitivity of firm …