This paper develops an endogenous growth model to examine the linkage between military expenditures and economic growth. We adopt the modeling strategy where both the supply side and the demand side effects of national defense are taken into considerations. Our result finds that a rise in...

This paper attempts to examine the effect of an anticipated foreign military threat on the steady-state growth rate and the transitional behavior of the economy. The modeling strategy follows the Sandler and Hartley (1995) and Dunne et al. (2005) viewpoints to emphasize the role of national...

Based on the amended Aoki model embodying alternative price adjustment patterns, this paper re-examines the evolutionary behavior of exchange rate in response to alternative anticipated disturbances. It is shown that, regardless of whether the system is characterized by the global instability or...

We construct an analytically tractable endogenous growth model of money and banking where money provides "liquidity services" to facilitate transactions and banks convert non-reserve deposits into productive capital. We examine both the long- and short-run effects of changes in the money growth...

This paper extends S. Djajic (1987) to allow for an endogenous rate of time preference, and reexamines Djajic's experiment: how the optimal rates of private consumption and capital accumulation will respond to an unanticipated temporary expansion in government spending. The key factors...