E1 - General Aggregative Models
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Capital Flows to Developing Countries: Is There an Allocation Puzzle?
Foreign direct investment inflows are positively related to growth across developing countries—but so are savings in excess of investment. I develop an explanation for this well-established puzzle by focusing on the limited availability of consumer credit in developing countries together with general equilibrium effects. -
Business Cycles in Small, Open Economies: Evidence from Panel Data Between 1900 and 2013
Using a novel data set for 17 countries dating from 1900 to 2013, we characterize business cycles in both small developed and developing countries in a model with financial frictions and a common shock structure. We estimate the model jointly for these 17 countries using Bayesian methods.