In this paper we analyze an aggregative general equilibrium model in which the use of money is motived by a cash-in-advance constraint, applied to purchases of a subset of consumption goods. The system is subject to both real and monetary shocks, which are economy-wide and observed by all. We...

This paper develops a simple model in which uncertainty about future tax policy leads to a temporary reduction in investment. The basic idea is that policy uncertainty creates uncertainty about the profitability of investment. If the uncertainty is likely to be resolved in the not-too-distant...

<Para ID="Par1">This paper studies the interaction between technology, a public input that flows in from abroad, and human capital, a private input that is accumulated domestically, as twin engines of growth in a developing economy. The model displays two types of long run behavior, depending on policies and...</para>