Showing papers in "Journal of Monetary Economics in 1993"

TL;DR: The authors construct an endogenous growth model in which financial systems evaluate prospective entrepreneurs, mobilize savings to finance the most promising productivity-enhancing activities, diversify the risks associated with these innovative activities and reveal the expected profits from engaging in innovation rather than the production of existing goods using existing methods.

TL;DR: In this paper, the authors present cross-sectional and panel regressions showing that growth is negatively associated with inflation, large budget deficits and distorted foreign exchange markets, and that the causation runs from macroeconomic policy to growth.

TL;DR: In this article, the authors describe a data set on educational attainment for 129 countries over five-year periods from 1960 to 1985, and provide a rough breakdown into incomplete and complete attainment at the three levels of schooling.

TL;DR: In this paper, the empirical regularities relating fiscal policy variables, the level of development, and the rate of growth are described, and they employ historical data, recent cross-section data and newly constructed public investment series.

TL;DR: A nation that lacks physical objects like factories and roads suffers from an idea gap as discussed by the authors, while a country that lacks knowledge used to create value in a modern economy suffers from a knowledge gap.

TL;DR: This article examined the economic functions of banks in environments in which agents are asymmetrically informed and considered the incentive effects (moral hazard) resulting from deposit insurance, and provided limited support for either set of theoretical predictions.

TL;DR: In this article, the authors test the time series properties of per-capita income in U.S. regions for consistency with the neoclassical growth model's prediction of each region achieving β-convergence.

TL;DR: This article found that growth rates are highly unstable over time, with a correlation across decades of 0.1 to 0.3, while country characteristics are stable, with cross-decade correlations of 1.6 to 1.9, suggesting that shocks are important relative to country characteristics in determining long-run growth.

TL;DR: In this paper, the authors developed and analytically tractable empirical model of investment and the current account, and applied it to data from the G-7 countries and found that the difference between global and country-specific shocks turns out to be quite important for explaining current account behavior.

TL;DR: This paper examined whether negative innovations to GNP are more or less persistent than positive innovations and found that negative innovations are much less persistent over time than positive ones, and that the effect of a recession on the forecast of output is negligible after only eight to twelve quarters, while the impact of a positive shock is estimated to be persistent and amplified over time.

TL;DR: In this article, the relationship between inflation and growth in an endogenous growth framework is investigated and two models that illustrate different channels through which inflation affects growth are presented, emphasizing the effect of inflation on the rate of investment and on the productivity of investment, respectively.

TL;DR: The authors presented a simple endogenous growth model with two types of capital which can display sizeable long-run growth effects of distortionary policies, such as differential taxes and tariffs, black market exchange rates, and price controls.

TL;DR: The authors used cointegration techniques and error-correction models to re-examine the link between real exchange rates and real interest rate differentials and concluded that there is little empirical evidence in support of a systematic relationship and this result is robust across exchange rates, time periods and measures of expected inflation.

TL;DR: In this article, a stochastic, dynamic general equilibrium model with endogenous growth and money is examined in a setting where inflation lowers growth through its effect on the return to work.

TL;DR: The authors found that the consumer price of a good relative to a different good within a country tends to be much less variable than the price of that good compared to a similar good in another country.

TL;DR: In this paper, the authors investigate the ability of a representative agent model with time-separable utility to explain the first and second moments of the risk-free rate and the return to equity.

TL;DR: In this article, the authors extend and improve the database used in De Long and Summers (1991) and, focusing on developing economies, find that there is a very strong growth-equipment investment association even when rich industrialized economies are not considered.

TL;DR: In this paper, the interaction between productive and nonproductive savings in economies with endogenous long-run growth was studied, and it was shown that bubbles, when they exist, retard the growth of the economy and reduce the welfare of all generations born after the bubble appears.

TL;DR: In this article, the authors present evidence that business cycles are characterized by sharp troughs and round peaks, and they suggest caution in interpreting empirical tests of economic series that assume symmetry and motivate theoretic models in which additions to capacity, production and employment at the end of a recession are not mirror images of the cutbacks at the beginning of an expansion.

TL;DR: In this paper, the authors extended the neoclassical growth model to incorporate monopolistic competition and increasing returns to scale, and found that productivity fluctuations continue to account for a substantial fraction of output volatility.

TL;DR: In this paper, the authors define a new measure called "economies of diversification" to examine the cost effect of product line expansion, and apply it to a set of 468 U.S. depository institutions operating in 1984.

TL;DR: In this paper, a modification of the Lucas-Stokey (1983) cash-in-advance economy is presented, in which the representative consumer decides, based on relative prices, which goods to buy with cash and which with costly credit.

TL;DR: This paper showed that in competitive endogenous growth models without externalities, balanced growth equilibria are dynamically efficient, but due to the mix of capital rather than its scale, and that learning-by-doing externalities may exist, but not due to its scale.

TL;DR: Barro's tax smoothing hypothesis implies that the government runs a "budget deficit" whenever it anticipates the growth rate of national income to increase or the growth rates of its expenditure to decline as discussed by the authors.

TL;DR: In this article, it was shown that modeling money as an intermediate good does not necessarily imply that the optimal inflation tax is zero, and that the optimality of a zero inflation tax depends on the properties of the transactions costs technology.

TL;DR: In this paper, the authors present a model of monetary policy where the policymaker faces uncertainty about which he is learning in a Bayesian fashion, and show that it is optimal to bear some cost in terms of current output performance in order to gain information that can be used in the formulation of future monetary policy.

TL;DR: In this article, the authors examined the properties of nominal profits from speculation in dollar-dominated forward contracts using a representative agent cash-in-advance model, modified to allow for heteroscedasticity in the exogenous processes.