We investigate how bank migration across state lines over the last quarter century has affected the size and covariance of business fluctuations within states. Starting with a two-state version of the unit banking model in Holmstrom and Triocole (1997), we conclude that the theoretical effect of...

A general growth model with explicit resource reallocation costs is set up. A new feature is the property of hysteresis (i.e. a continuum of stationary equilibria) in closed-economy growth models. Employing a linear model the hysteresis range and the consequences for the long-run growth rate are...

The paradoxes of Lucas and Romer relate to the theoretical coherence of the international differences in productivity of the factors of production. To solve these paradoxes, the assumption of externality of the physical capital seems better than the assumption of externality of the human capital...

The paper studies endogenous world balanced growth equilibria in which national learning productivity differentials govern relative per capita products. Learning productivities depend on the national share of world specialized goods production, national and world scale, and familiarity with the...

The purpose of this essay is to analyze the circumstances where a monetary economy dominates over a redistributive barter economy in which there is not an absence of double coincidence of wants problem. For this purpose, we develop a spatial general equilibrium model where individuals must trade...

May cartoons be considered as a viable and credible source for the study of economics? There is hardly any research on the subject, even though there is a quite significant amount of cartoons with economic content. This suggests that economics (and economists) have not paid enough attention and...

After running several years for growth, few economists are arguing De-growth is better for the world. They argue that natural resources are exhausting as they are consumed at higher rate than they are generated. We argue that growth is sine qua non to maintain reasonable living standard for the...

The unintended economic effect on society as result of individual behaviour — Adam Smith’s ‘Invisible Hand’ of economic progress in the eighteenth century — had its equivalent in technological progress. In the nineteenth century, again individual behaviour with its Acts of Innovation...

Nations generally measure their economic performance using the yardstick of national output and income. It is not widely recognized, however, that conventional measures of national income and output exclude the value of improvements in the health status of the population. The present study...