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A Time to Sow and a Time to Reap : Growth Based on General Purpose Technologies

Helpman, Elhanan; Trajtenberg, Manuel - 2022

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...

Persistent link: https://www.econbiz.de/10013324609

A Long-Run Risks Explanation of Predictability Puzzles in Bond and Currency Markets

Bansal, Ravi - 2012

We show that bond risk-premia rise with uncertainty about expected inflation and fall with uncertainty about expected growth; the magnitude of return predictability using these two uncertainty measures is similar to that by multiple yields. Motivated by this evidence, we develop and estimate a...

Persistent link: https://www.econbiz.de/10013100993

Crises and Growth : A Re-Evaluation

Rancière, Romain G.; Tornell, Aaron; Westermann, Frank - 2022

We address the question of whether growth and welfare can be higher in crisis prone economies. First, we show that there is a robust empirical link between per-capita GDP growth and negative skewness of credit growth across countries with active financial markets. That is, countries that have...

Persistent link: https://www.econbiz.de/10013292471

International Financial Integration and Economic Growth

Edison, Hali J.; Levine, Ross; Ricci, Luca A.; Sløk, … - 2022

This paper uses new data and new econometric techniques to investigate the impact of international financial integration on economic growth and also to assess whether this relationship depends on the level of economic development, financial development, legal system development, government...

Persistent link: https://www.econbiz.de/10013308338

In Search of the Holy Grail : Policy Convergence, Experimentation, and Economic Performance

Mukand, Sharun; Rodrik, Dani - 2021

We consider a model of policy choice in which appropriate policies depend on a country's own circumstances, but the presence of a successful leader generates an informational externality and results in too little 'policy experimentation.' Corrupt governments are reined in while honest...

Persistent link: https://www.econbiz.de/10013310806

Creative Destruction and Development : Institutions, Crises, and Restructuring

Caballero, Ricardo J.; Hammour, Mohamad L. - 2021

There is increasing empirical evidence that creative destruction, driven by experimentation and the adoption of new products and processes when investment is sunk, is a core mechanism of development. Obstacles to this process are likely to be obstacles to the progress in standards of living....

Persistent link: https://www.econbiz.de/10013311627

Are Nonconvexities Important for Understanding Growth?

Romer, Paul M. - 2021

Everyday experience and a simple logical argument show that nonconvexities are essential for understanding growth. Compared to previous statements of this well known argument, the presentation here places more emphasis on the distinction between two of the fundamental attributes of any economic...

Persistent link: https://www.econbiz.de/10013311886

Growth Economics and Reality

Brock, William A.; Durlauf, Steven N. - 2021

the perspective of economic theory as well as from the perspective of the historical experiences of the countries under … model specification. Model uncertainty consists of two types: theory uncertainty, which relates to which growth determinants … draws from the same statistical model. We propose ways to account for both theory and heterogeneity uncertainty. Finally …

Persistent link: https://www.econbiz.de/10013222634

Financial Development and Growth in the Short and Long Run

Fisman, Raymond J.; Love, Inessa - 2021

We analyze the relationship between financial development and inter-industry resource allocation in the short- and long-run. We suggest that in the long-run, economies with high rates of financial development will devote relatively more resources to industries with a 'natural' reliance on...

Persistent link: https://www.econbiz.de/10013222934

Inequality and Growth

Bénabou, Roland - 2021

Using two unifying models and an empirical exercise, this paper present and extends the main theories linking income distribution and growth, as well as the relevant empirical evidence. The first model integrates the political economy and imperfect capital markets theories. It allows for...

Persistent link: https://www.econbiz.de/10013223063