Showing 1 - 10 of 48
Spatial modeling of economic phenomena requires the adoption of complex econometric tools, which allow us to deal with important methodological issues, such as spatial dependence, spatial unobserved heterogeneity and nonlinearities. In this paper we describe some recently developed econometric...
Persistent link: https://www.econbiz.de/10011077513
We study the dynamic macroeconomic effects of public infrastructure investment under a balanced budget fiscal rule, using an overlapping generations model of a small open economy. The government finances public investment by employing distortionary labor taxes. The balanced budget rule implies a...
Persistent link: https://www.econbiz.de/10010744187
This paper extends the forestry maximum principle of Heaps (1984) to allow the benefits of harvesting to be the utility of the volume of the wood harvested as in Mitra and Wan (1985, 1986). Unlike those authors, however, time is treated as a continuous rather than as a discrete variable....
Persistent link: https://www.econbiz.de/10011264279
diversifies. Numerical simulations show that the speed of convergence increases with the size of the shocks. In the limit, when … there is no uncertainty, there is no convergence and countries may specialize permanently. The paper highlights the role of …
Persistent link: https://www.econbiz.de/10010577449
Social values/belief systems can be viewed as a stock of non-productive ideas that are collectively shared in a non-rivalrous way and evolve through experience/participation at the aggregate social level. While they are separate from the stock of scientific ideas that are essential to...
Persistent link: https://www.econbiz.de/10011209216
This paper analyzes the interplay of human capital formation and economic growth when there is premature adult mortality. Failing adequate insurance arrangements, a long wave of such mortality can so undermine human capital formation as to induce an economic collapse. In nuclear family...
Persistent link: https://www.econbiz.de/10010871019
We study the effect of a declining labor force on the incentives to engage in labor-saving technical change and ask how this effect is influenced by institutional characteristics of the pension scheme. When labor is scarcer it becomes more expensive and innovation investments that increase labor...
Persistent link: https://www.econbiz.de/10010906781
The structural transformation of China – or the reallocation of resources from the agricultural sector to the nonagricultural sector – between 1978 and 2003 was truly remarkable. We develop a two-sector neoclassical growth model to quantitatively assess the driving forces of China's recent...
Persistent link: https://www.econbiz.de/10011051916
In this paper we examine the role played by environmental externalities in shaping the dynamics of an economy with two sectors (a farming sector and an industrial one), free inter-sectoral labor mobility and heterogeneous agents (workers/farmers and industrial entrepreneurs). We find that, in...
Persistent link: https://www.econbiz.de/10011051979
We consider a microfounded urban growth model with two regions and a mass of mobile workers to study interactions among growth, agglomeration, and urban congestion. Unlike previous research in the urban growth literature, we formulate the model as a one-shot game and take an evolutionary...
Persistent link: https://www.econbiz.de/10010664653