This paper develops an empirical model of the cross-country variation in bilateral output growth correlations for 17 OECD countries. Consideration is given to the role played by explicit mechanisms for transmitting shocks between countries, such as trade in goods and financial assets and the...

Addresses the question of causality between public capital and private production in Australia. Representations for private production; Long-run elasticities; Short-run dynamics; Relationship between public capital and employment.