We prove a generalized, multi-factor version of the Uzawa steady-state growth theorem. The theorem implies that neoclassical growth models need at least three factors of production to be consistent with empirical evidence on both the capital-labor elasticity of substitution and the existence of...

The paper analyzes the role of differences in household behavior as a source of persistent and even permanent differences between national or regional productivity growth rates, when there are constant static returns to scale in production and costless international diffusion of technology. A...

Labor reallocation is often regarded as an essential component of productivity growth, based on the thought that innovation is made by firms expanding to new business areas with better technology (horizontal innovation). I study the relationship between long-run growth and labor reallocation by...

We sought to empirically model the augmented Solow-Swan (1956) growth model as documented by Mankiw, Romer and Weil (1992) by incorporating human capital as a factor of production. This was necessary in order to address the shortcomings of the basic Solow-Swan (1956) growth model. Under the...

We build a novel endogenous growth model with information carrier technology, in which knowledge may be lost in storage and dissemination. In the asymptotic balanced growth path equilibrium, we establish two main findings. First, the growth rate of information carrier technology and the...

We propose a new approach to deal with continuous time dynamic model with discontinuity, by which we incorporate gradual innovations and technological leaps, as well as endogenous cycles and long-run growth into one framework. We show that the optimal or equilibrium growth path is a cyclic...

We analyze Ramsey optimal monetary policy in a New-Keynesian model withsearch and matching frictions featuring (i) training costs due to skill loss fromlong-term unemployment and (ii) endogenous growth through learning-by-doingexternalities. In a simplified two-period version of the model, the...

This paper incorporates the notion of public capital in a Blanchard OLG model to study the effects of debt-financed public investments on growth and welfare in the long-run. The simple analytic result is that public debt can enhance both welfare and private capital in equilibrium, conditional on...

Purpose - This study aims to empirically investigate the connection between Islamic finance and economic growth in Turkey using the endogenous growth model. Design/methodology/approach - It applies quantile regression with the Markov chain marginal bootstrap resampling technique by adopting...