This paper integrates the decision making of a firm facing production uncertainty into the theory of aggregate supply. This integration has two important policy implications. First, if the aggregate demand is not unitary price elastic, the presence of uncertainty reduces the aggregate supply,...

This study investigates the effect of openess on economic growth for rapidly growing economies in East Asia in which rapid growth has been accompanied by a persistent openess to world trade. The framework of analysis is a five-variable vector auto-regressive model that consists of real output,...