This paper is concerned with three interrelated aspects of financial development in Colombia‐first, the use of monetary correction, which involves the adjustment of various assets and liabilities for changes in the price level; second, the development of efficient capital markets; and, third,...

Models of endogenous economic growth can generate long-term growth without relying on exogenous changes in technology or population. A general feature of these models is the presence of constant or increasing returns in the factors that can be accumulated. I use some models of this type to study...

The coefficient of relative risk aversion is a key parameter for analyses of behavior toward risk, but good estimates of this parameter do not exist. A promising place for reliable estimation is rare macroeconomic disasters, which have a major influence on the equity premium. The premium depends...