This paper examines how ratings for emerging market economies have been set. Given the high degree of autocorrelation in ratings, we use estimators that yield consistent parameters in the presence of such correlation. The results show that rating changes for emerging market economies have been...

In the growth literature, evidence on income convergence is mixed. In the development literature, health and education indicators are also often used. This study examines whether health and education levels are converging across countries and calculates their convergence speed, using data from...

In this paper, we illustrate that a power series technique can be used to derive explicit expressions for the transient state distribution of a queueing problem having “chemical” rules with an arbitrary number of customers present initially in the system. Based on generating function and...

In this paper, we illustrate that a power series technique can be used to derive explicit expressions for the transient state distribution of a queueing problem having “chemical” rules with an arbitrary number of customers present initially in the system. Based on generating function and...

This paper addresses the statistical properties of time series driven by rational bubbles a la Blanchard and Watson (1982). Using insights on the behavior of multiplicative stochastic processes, we demonstrate that the tails of the unconditional distribution emerging from such bubble processes...

In this paper, we present a simple vintage capital growth model in which both exogenous and endogenous fluctuations sources are present. Indeed, it can be seen as a particular case of Caballero and Hammour (1996)'s creative destruction model, with advantage that analytical characterization of...

We discuss some practical issues related to the use of the Parameterized Expectations Approach (PEA) for solving non-linear stochastic dynamic models with rational expectations. This approach has been applied in models of macroeconomics, financial economics, economic growth, contract theory,...

Conolly et al. [Math. Scientist 22 (1997) 83–91] have obtained the transient distribution for a random walk moving on the integers -∞k∞ of the real line. Their analysis is based on a generating function technique. In this paper, an alternative technique is used to derive elegant explicit...

In this paper we analyze a recurrence , where is a weighted power mean of ,…., . Such an iteration scheme has been proposed to model a class of non-linear forward-looking economic models ( the state today is affected by tomorrow’ s expectation ) under bounded rationality; the agents employ a...