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Factor income distribution and endogenous economic growth : when Piketty meets Romer

Irmen, Andreas; Tabaković, Amer - 2016

We scrutinize Thomas Piketty's (2014) theory concerning the relationship between an economy's long-run growth rate, its … of Piketty's Second Fundamental Law of Capitalism does not hold. In line with Piketty's theory a smaller long-run growth …, both the economy's savings rate and its growth rate are endogenous variables whereas in Piketty's theory they are both …

Persistent link: https://www.econbiz.de/10011568791

Green technology adoption and the business cycle

Bourgeon, Jean-Marc; Hovsepian, Margot - 2017

We analyze the adoption of green technology in a dynamic economy affected by random shocks where demand spillovers are the main driver of technological improvements. Firms' beliefs and consumers' anticipations drive the path of the economy. We derive the optimal policy of investment subsidy and...

Persistent link: https://www.econbiz.de/10011657885

Growth and trade with frictions : a structural estimation framework

Anderson, James E.; Larch, Mario; Yotov, Yoto V. - 2015

. Theory translates into an intuitive econometric system that identifies the causal impact of trade on income and growth, and …

Persistent link: https://www.econbiz.de/10011298529

The fiscal theory of the price level with a bubble

Brunnermeier, Markus Konrad; Merkel, Sebastian; … - 2020

This paper incorporates a bubble term in the standard FTPL equation to explain why countries with persistently negative primary surpluses can have a positively valued currency and low inﬂation. It also provides an example with closed-form solutions in which idiosyncratic risk on capital...

Persistent link: https://www.econbiz.de/10012213139

Structural reforms, growth and inequality : an overview of theory, measurement and evidence

Campos, Nauro; De Grauwe, Paul; Ji, Yuemei - 2017

This paper provides a critical overview of the state of the art in the economics literature on structural reforms. It takes stock of theoretical developments, measurement efforts and of the econometric evidence. We start with a simple theoretical framework for the relationship between structural...

Persistent link: https://www.econbiz.de/10011780603

Credit booms, debt overhang and secular stagnation

Illing, Gerhard; Ono, Yoshiyasu; Schlegl, Matthias - 2017

Why do advanced economies fall into prolonged periods of economic stagnation, particularly in the aftermath of credit booms? We present a model of persistent aggregate demand shortage based on strong liquidity preferences of households, in which we incorporate financial imperfections to study...

Persistent link: https://www.econbiz.de/10011774952

Finance, talent allocation, and growth

D'Acunto, Francesco; Frésard, Laurent - 2018

The growing finance wage premium is related to a modest net reallocation of skilled workers from non-finance sectors into finance in a broad sample of 24 countries over 35 years. The reallocation is higher when the finance wage premium grows faster than the contribution of the financial sector...

Persistent link: https://www.econbiz.de/10011794229

Growth and the geography of knowledge

Aloi, Marta; Poyago-Theotoky, Joanna; Tournemaine, … - 2018

We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, growth and regional inequality. We provide conditions for existence and uniqueness of a spatial equilibrium, and for the endogenous emergence of industry clusters. Spatial...

Persistent link: https://www.econbiz.de/10011810111

Should we care (more) about data aggregation? : evidence from the democracy-growth-nexus

Gründler, Klaus; Krieger, Tommy - 2019

We compile data for 186 countries (1919 - 2016) and apply different aggregation methods to create new democracy indices. We observe that most of the available aggregation techniques produce indices that are often too favorable for autocratic regimes and too unfavorable for democratic regimes....

Persistent link: https://www.econbiz.de/10011966711

Natural resources and economic growth : what is the connection?

Thorvaldur Gylfason - 2001

This paper reviews the relationship between natural resources and economic growth, and stresses how natural capital tends to crowd out foreign capital, social capital, human capital, andphysical capital, thereby impeding economic growth across countries and presumably also over time....

Persistent link: https://www.econbiz.de/10011399567