The literature's standard finding -- that countries with open capital accounts do not grow faster -- tests a prediction the neoclassical growth model never makes, because in that model liberalization …
PublishedClassicReview of Economic StudiesOnline 22 Jan 2013Published Oct 2013
The textbook neoclassical growth model says countries whose productivity is catching up should invest more and import more capital. Across 68 developing countries over 1980-2000 the cross-country …
PublishedClassicEconomic ModellingOnline 28 May 2022Published Sep 2022
In a calibrated neo-classical growth model, moving from financial autarky to integration raises consumption most in the first years after opening, so the standard infinite-horizon Hicksian welfare …
PublishedJournal of Money, Credit and BankingOnline 9 Sep 2024Published Aug 2026
This paper develops a two-country currency union DSGE model with endogenous TFP growth and product and labor market frictions to assess how cross-country differences in market regulation affect …
Online FirstReview of Economic StudiesOnline 17 Jun 2026
Using the 2001 Hungarian capital account liberalization as a quasi-natural experiment and census-level firm data covering the entire economy (1992–2008), the paper identifies two channels through …