In this paper we develop a simple model of the relationship between financial market development and investment by entrepreneurs in the presence of a Central Bank. The model analyzes how the level of financial development affects the way credit spreads, and therefore the volume of credit and...

The purpose of this paper is to explain the humped-shaped behavior of the growth rate. Within a dynamic general equilibrium framework, it is found that, in the early stages of development, the source of growth is the reallocation of resources from sectors low-productivity sectors to...

Per capita output is more volatile in middle-income economies than in both low-income and high-income economies. We examine this pattern in a two-period overlapping generations model with two productive sectors (a developed sector and a subsistence sector) and a credit sector. In the early and...

A bivariate vector-autoregression (VAR) model is used to test causal relations between the current account and the capital account in four emerging market economies. The results show that high capital mobility could be a major cause of current account instability. Therefore, macroeconomic policy...

In this paper we empirically examine the determinants of changes in the organization of production using detailed information on a data set from a new plant-level survey from 1003 plants distributed in all manufacturing industries in Spain. In particular, and among many other things, survey...

In this paper we empirically examine the determinants of changes in the organization of production using detailed information on a data set from a new plant-level survey from 1003 plants distributed in all manufacturing industries in Spain. In particular, and among many other things, survey...