Recent empirical research has suggested that there is a robust causal relationship running from equipment investment to economic groth. The stutus of this association as a "stylised fact" is examined. The data indicate that other forms of investment also have strong associations with economic...

The main contribution of the paper is an attempt to address the selection and growth issues by working, not with cohorts of households, but with cohorts of individuals. The gain from doing so is that we dispose completely of selection associated with household formation, which compro-mises our...

This paper tries to empirically disentangle some of the puzzles about Chileans savings behavior with data that span the 1960-1995 period. In section 2, we check whether the most commonly stylized facts concerning savings in the world's recent history hold for the case of Chile. Section 3...

This paper investigates the relationship between output volatility and growth using post-war real GDP data for the United States. We expand on recent research by Beaudry and Koop (1993) documenting the asymmetric effect of recessions on output growth. The results presented in this paper suggest...

This paper reviews the evidence on growth and saving, considering various models in turn, and summarizing the extent to which they appear to be consistent with the facts. These reviews are necessarily brief, and apart from the first two sections, I focus on models of house-hold behavior that...

This paper shows that the volatility of wages has significant effects on a country’s rate of economic growth. Our theoretical framework suggests two distinct channels in which wage volatility affects growth: a positive direct way and a negative indirect way. The direct effect stems from...

We set up a three-period overlapping generation model in which young individuals allocate their time to schooling and work, healthy middle aged individuals allocate their time to leisure and work and their income to consumption and savings for retirement, and old age individuals live off their...