Macroeconomic Dynamics Vol

13651005_16-3.qxd 5/10/12 7:54 PM Page 1 Macroeconomic Dynamics Vol. 16, No. 3, June 2012 Pages 335–492 VOLUME 16, NUMBER 3, JUNE 2012 MACROECONOMIC DYNAMICS Volume 16, Number 3, June 2012 Contents

ARTICLES Is More Memory in Evolutionary Selection (De)stabilizing? Cars Hommes, Tatiana Kiseleva, Yuri Kuznetsov, and Miroslav Verbic 335 Do Bank Capital Requirements Amplify Business Cycles? Bridging the Gap between Theory and Empirics Roger Aliaga-Díaz and María Pía Olivero 358 Output Fluctuations in the G-7: An Unobserved Components Approach MACROECONOMIC Sinchan Mitra and Tara M. Sinclair 396 The Use of a Marshallian Macroeconomic Model for Policy Evaluation: Case of South Africa DYNAMICS Jacques Kibambe Ngoie and Arnold Zellner 423 Policy Switch and the Great Moderation: The Role of Equilibrium Selection Efrem Castelnuovo 449

NOTES A Note on an Extension of a Class of Solutions to Dynamic Programming Problems Arising in Economic Growth Jürgen Antony and Alfred Maußner 472 A Note on Environmental Policy and Public Debt Stabilization Mouez Fodha and Thomas Seegmuller 477

EDITOR: WILLIAM A. BARNETT

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Volume 16, Number 3, June 2012 Contents

ARTICLES Is More Memory in Evolutionary Selection (De)stabilizing? Cars Hommes, Tatiana Kiseleva, Yuri Kuznetsov, and Miroslav Verbic 335 Do Bank Capital Requirements Amplify Business Cycles? Bridging the Gap between Theory and Empirics Roger Aliaga-D´ıaz and Mar´ıa P´ıa Olivero 358 Output Fluctuations in the G-7: An Unobserved Components Approach Sinchan Mitra and Tara M. Sinclair 396 The Use of a Marshallian Macroeconomic Model for Policy Evaluation: Case of South Africa Jacques Kibambe Ngoie and Arnold Zellner 423 Policy Switch and the Great Moderation: The Role of Equilibrium Selection Efrem Castelnuovo 449

NOTES A Note on an Extension of a Class of Solutions to Dynamic Programming Problems Arising in Economic Growth Jurgen¨ Antony and Alfred Maußner 472 A Note on Environmental Policy and Public Debt Stabilization Mouez Fodha and Thomas Seegmuller 477

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