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A Contribution to the Empirics of Economic Growth
This paper examines whether the Solow growth model is consistent with the international variation in the standard of living. It shows that an augmented Solow model that includes accumulation of humanExpand
Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve
This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly throughout the population. Compared to the commonly used sticky-price model, thisExpand
Consumption, Income, and Interest Rates: Reinterpreting the Time Series Evidence
This paper proposes that the time-series data on consumption, income, and interest rates are best viewed as generated not by a single representative consumer but by two groups of consumers. Half theExpand
Free Entry and Social Inefficiency
Previous articles have noted the possibility of socially inefficient levels of entry in markets in which firms must incur fixed set-up costs upon entry. This article identifies the fundamental andExpand
The Consumption of Stockholders and Non-Stockholders
Only one-fourth of U.S. families own stock. This paper examines whether the consumption of stockholders differs from the consumption of non-stockholders and whether these differences help explain theExpand
Permanent Income, Current Income, and Consumption
This article reexamines the consistency of the permanent-income hypothesis with aggregate postwar U.S. data. The permanent-income hypothesis is nested within a more general model in which a fractionExpand
The Savers-Spenders Theory of Fiscal Policy
The macroeconomic analysis of fiscal policy is usually based on one of two canonical models--the Barro-Ramsey model of infinitely-lived families or the Diamond-Samuelson model of overlappingExpand
Disagreement About Inflation Expectations
Analyzing 50 years of inflation expectations data from several sources, we document substantial disagreement among both consumers and professional economists about expected future inflation.Expand
Asymmetric Price Adjustment and Economic Fluctuations
This paper considers a possible explanation for asymmetric adjustment of nominal prices. We present a menu-cost model in which positive trend inflation causes firms' relative prices to declineExpand
Capital Mobility in Neoclassical Models of Growth
The empirical evidence reveals conditional convergence in the sense that economies grow faster per capita if they start further below their steady-state positions. For a homogeneous group ofExpand