We explore the role of financial development to explain the negative correlation between capital inflows and productivity catch-up. Evidence shows that countries with higher productivity growth rates export capital while countries with lower productivity growth rates receive positive capital...

We incorporate the spatial dimension into a standard expanding variety growth model based on R&D. The spatial interaction is introduced through spatial production spillovers, knowledge diffusion across space, and the capability for spatial heterogeneity. Forward-looking agents who operate in a...

How does wealth inequality affect economic growth? Byoungchan Lee answers this question by developing a heterogeneous-agent model and augmenting it with endogenous firm innovation. The novel channel is that rising wealth concentration reduces aggregate demand, which gives firms a disincentive to...

This paper discusses a model with a nonproductive asset and lookahead processing, and indicates that two types of paths exist for the behaviors of the model; the bubble type and the deflation type. In the bubble type, a bubble occurs around the end of hight growth, in which the capital...

The NEST or potential Emerging and growth-leading economies (EAGLEs) have been playing an increasing role in global growth, but the problems of their long-term growth attract the least attention, specifically the possibility of endogenous growth. The study was conducted to test for the...

This study aims to examine the transitional dynamics and stability of an endogenous growth model with firm heterogeneity. In general, even if trade liberalization promotes economic growth in the long run, it does not mean that free trade will always enhance growth rate. The main purpose of this...

We use a model of endogenous growth with vertical innovations, in order to derive optimal energy policy under uncertainty. Innovation can be directed to dirty, green, or nuclear technologies, which in turn can be used to produce different types of energy. We show that, nuclear energy usage, is...

We develop a model of growth driven by successive improvements in 'General Purpose Technologies' (GPT's), such as the steam engine, electricity, or micro-electronics. Each new generation of GPT's prompts investments in complementary inputs, and impacts the economy after enough such compatible...