This paper demonstrates that the role of the personal income distribution for an economy's process of development through risky human capital accumulation critically depends on the shape of the saving function. Empirical evidence for the U.S. strongly suggests that the marginal propensity to...

Within the causal structure of economic development, we can distinguish between short-term and long-term causal links. In particular, this study examines long-term short-term causal relations in economic development. We construct a balanced panel for 72 countries over the period from 1980 to...

Are open economies characterized by superior economic performance in the long-run? This paper revisits this important question from the point of the view of unified growth theory. Contrary to other recent attempts to study this question, the paper considers two distinct channels through which...

We construct a Schumpeterian growth model of a common market with following properties. Households can stay as workers or become researchers at some cost. Workers are employed in production and researchers in R&D. Workers are unionized. A larger common market means a wider variety of products...

During the last twenty years the share of researchers in the workforce has been rising in OECD countries. The consistency of this pattern suggests that it is not a transitional phenomenon. This paper demonstrates that the rise of research can occur in the steady state when schooling inequality...

This paper analyzes Walrasian general equilibrium systems and calculates the static and dynamic solutions for competitive market equilibria. The Walrasian framework encompasses the basic multi-sector growth (MSG) models with neoclassical production technologies in N sectors (industries). The...

The paper focuses on the impact of business related R&D spending on input factor productivity (IFP) using international patent applications as a technology diffusion channel. Considering the relationship amongst research and productivity, international patent pattern reflect the link between the...

This paper establishes a simple model of long run economic and political development, which is driven by the inherent technical features of different factors in production, and political conflicts among factor owners on how to divide the outputs. The main capital form in economy evolves from...

This paper presents a two-countries dynamic model of Schumpeterian growth with two innovative R&D sectors in each country: a vertical R&D sector that improves the quality of existing differentiated products and a horizontal R&D sector that creates new differentiated products. The two countries...

This paper decomposes the resource curse and its potential reversal in three important dimensions; type of resource, type of institutional measure, and time. Studying components of primary exports we find that the curse is (to various degrees) present for all components but that its possible...