We study the macroeconomic effects of international trade policy by integrating a Hecksher-Ohlin trade model into an optimal growth framework. The model predicts that an open economy will have higher factor productivity. Furthermore, under protectionist policies there may be "development traps,"...

This article tests if standard business cycle models can reliably reproduce aggregate Brazilian time series. The article first describes some features of the Brazilian data that the models are meant to reproduce. Then it describes a version of the standard business cycle model with indivisible...

This article investigates the impact on the U.S. economy of making health care more affordable. We compare health care cost reductions with the Patient Protection and Affordable Care Act (ACA) using a rich life cycle general equilibrium model with heterogeneous agents. We evaluate a wide range...