In this paper I present two models with policy variability arising from randomness in the provision of productive public spending. In the first model, public spending enters as an input in output production. In this case I find that the relationship between policy variability and growth depends...

This paper documents the statistical properties of the contemporary business fluctuations in the United Kingdom. The authors study the period 1956-90 using quarterly, detrended data on key aggregate variables. They compute selected moments of the data, compare their results with those for the...

This paper presents an analysis of the joint determination of real and financial development. Privately informed designers obtain external finance for their research projects through incentive-compatible loan contracts. Contracts are enforced through costly monitoring activity which lenders may...