This paper extends Solow's vintage capital model by (1) deriving profits as a function of investments, and (2) adding an investment financing equation in terms of profits. It is shown that these extensions lead to a completely endogenous growth model. The dynamic system yields an equilibrium...

Both endogenous growth theory and the (augmented) Solow model propose a role for human capital in the growth process though each is based on different conceptual arguments. Since both approaches can justify the inclusion of human capital levels and growth rates in an output growth regression the...

This paper presents a closed economy model of endogenous growth driven by capital externalities arising from both private capital and public infrastructure. The model is calibrated to fit data for India, an approximately closed economy. Simulations suggest that fiscal policy certainly matters...

This paper attempts to analyse the interrelationships between government and military expenditure and economic growth in particular, and between security and development in general, in a new framework. It has three novel features. First, the impact of military spending (as well as any other...

I argue that the West should lend money to the former Soviet Union and Eastern Europe (FSUEE) to prevent excessive deterioration of its human capital stock. Such loans can improve the recipient countries' welfare by allowing them to enjoy the long-run benefits of a large human capital stock...

This paper examines the magnitude of direct transfers between the former Soviet Union central budget and individual republics. It shows that Kazakhstan and Central Asian republics were primary recipients of large net transfers of funds from the Soviet central budget amounting in some cases to...

The paper focuses on the analysis of return on shares quoted on the Warsaw Stock Exchange (WSE) in the period 1991-1993. We found that the WSE specific institutional background resulted in a large variation of return rates, their distributional asymmetry and truncations which make hypotheses...

This paper introduces methods of variable structure control (VSC) theory to economists. The VSC design is based on closed loop optimal control solutions. It is shown that VSC can yield stable solutions in the presence of parameter errors whereas conventional closed loop optimal control solutions...