Sumru Altu? is professor at the College of Administrative Sciences and Economics at Koç university in Istanbul. Her fields of interest include business cycles, investment, productivity and growth, intertemporal models of consumption and labour supply, and financial markets. Her previous publications include Dynamic Choice and Asset Markets (Academic Press, 1994) with Pamela Labadie, and Dynamic Macroeconomic Analysis: Theory and Policy in General Equilibrium (Cambridge University Press, 2003) with Jagjit Chadha and Charles Nolan. Alpay Filiztekin is an Associate professor in the Faculty of Arts and Social Sciences at Sabanci University in Istanbul. His fields of research include growth theory, regional economics, productivity dynamics and real costs of inflation.