This paper discusses three key elements of stochastic growth in the Schumpeterian dynamics. These elements comprise the new entry of firms in an industry, the displacement of the old technology by the new and the nonlinear impact of learning by doing on the growth of innovating firms. Each of...

Recent policy applications of control theory methods in dynamic economic models raise the issue of imposing the transversality condition for determining a unique optimal control policy. In a stochastic framework this issue involves alternative methods of estimation, which are discussed here both...

Which of the two forces,past trends or future expectations plays a more dominant role in exchange market volatility? This hypothesis is exonometrically tested here for four advanced industrial countries, France, UK, Japan and Germany over the period 1985 to 1995.