Boucekkine, Raouf; Fabbri, Giorgio; Pintus, Patrick - Centre d'Études des Politiques Économiques (EPEE), … - 2013
We consider a small-open, collateral-constrained AK economy. We show that the combination of CARA preferences and uncertainty on capital inflows in such an economy generates long-term (expected) growth while the deterministic counterpart does not. In this framework, long-term growth is entirely...