In this second of a series of three working papers, we use a simple neoclassical growth model to illustrate how consumption, investment, and output -- more broadly, the entire dynamic equation system of a model -- can be strongly influenced by alternative specifications of a reaction function...

There is a large and growing literature on the benefits and costs of moving to a single currency in Europe. Much of the literature is theoretical in nature with very little empirical evaluation of the magnitudes of effects. This paper places some quantitative magnitudes on the scale of some...

This paper explores prospects for the world economy to the year 2020 through a series of scenarios based on different assumptions about future changes in the structure of individual economies. It differs from most other medium term studies because we do not assume that each economy's variables...

This paper extends the literature on the evolution of norms with an agent-based model capturing a phenomenon that has been essentially ignored, nam ely that individual thought -- or computing -- is often inversely related to the strength of a social norm. In this model, agents learn how to...

Does a consumer price index (CPI) need an underlying conceptual framework? If so, should it be the theory of the cost-of-living (COL) index?