We examine the empirical role of different explanations for the lack of flows of capital from rich to poor countries - the "Lucas Paradox." The theoretical explanations include differences in fun- damentals across countries and capital market imperfections. We show that during 1970-2000 low...

We estimate a model with latent factors that summarize the yield curve (namely, level, slope, and curvature) as well as observable macroeconomic variables (real activity, inflation, and the stance of monetary policy). Our goal is to provide a characterization of the dynamic interactions between...

We estimate a model with latent factors that summarize the yield curve (namely, level, slope, and curvature) as well as observable macroeconomic variables (real activity, inflation, and the stance of monetary policy). Our goal is to provide a characterization of the dynamic interactions between...