Roger Garrison (2001) provides a welcome diagrammatic exposition of Austrian, capital-based macroeconomics. The exposition attempts to account not only for Austrian Business Cycles (ABCs), but also for long-run, secular growth. Secular growth is a focus of mainstream growth theory that has arguably been neglected by Austrian analysis. However, Salerno (2001) argues that the type of secular grow...

This article describes the configuration of the scientific field in Brazil, characterizing the scientific communities in every major area of knowledge in terms of installed capacity, ability to train new researchers, and capacity for academic production. Empirical data from several sources of information are used to characterize the different communities. Articulating the theoretical contributi...

Capital requirements are the principal tool of macroprudential regulation of banks. Bank capital serves both as a buffer and as a disincentive to excessive risk taking. When general equilibrium effects are taken into account, however, it is not clear that higher capital requirements will reduce the level of risk in the banking system. In addition, an increase in the required capital ratio can f...

This paper provides a new economic interpretation of the well-known dynamic optimal taxation principle that capital income should not be taxed in the steady state. We show that the result is related to the minimization of distortions at the intratemporal margin. When every factor of production can be taxed at the optimal rate, capital income should not be taxed in the steady state. But when the...

We develop a tractable two-country overlapping-generations model with domestic financial frictions and show that cross-country differences in financial development explain three recent empirical patterns of international capital flows. In our model, domestic financial frictions create two distinct distortions on the interest rates and production efficiency in the less financially developed coun...

Estimation of Rybczynski e®ects in a sample of 14 developing countries over 1982-1992 reveals a puzzle: labor-intensive manufacturing sectors tend to expand and capital-intensive manufacturing sectors contract as country capital abundance increases, after allowing for changes in technology, skill, and trade barrier. Empirical tests show strong evidence of multiple diversi ̄cation cones in the fu...