We fully characterize the transition to sustained growth of resource-constrained economies using a model of industrialization that reproduces key stylized facts of resource use and prices. Natural scarcity, endogenous demography and innovations generate different growth regimes: knowledge-based...

The paper examines the impacts of heterogeneity in the degree of relative risk aversion on the balance on current account in the framework of endogenous growth, and concludes that, like heterogeneity in demographic changes, heterogeneity in the degree of relative risk aversion generates...

The paper examines the impacts of heterogeneity in the degree of relative risk aversion on the balance on current account in the framework of endogenous growth, and concludes that, like heterogeneity in demographic changes, heterogeneity in the degree of relative risk aversion generates...

We calibrate an endogenous growth model to study the effect of the quality of human capital on productivity growth in a sample of thirty developed and developing countries for the period 1980 to 2007. We measure quality of human capital by relative cognitive skills. These are country scores in...

In Jones (2002), Lucas (2009), and Lucas and Moll (2014), among others, growth is a function of new ideas, and reflects Kuznets (1960) useful knowledge (or testable knowledge) as a main driver of growth. In both Kuznets and Jones, the discovery of new ideas is tied to population growth. In the...

We depart from the empirical literature on testing the finance led growth. Instead of regression analysis, we use a semi-endogenous growth model, which identifies two productivity growth paths: a steady state and a transitional path. Steady state growth is anchored by population growth. In the...

Stating from the intrinsic characteristics of macroeconomic process, this paper puts forward the concept of developwer and its theoretical frame. The developwer is the potential and invisible motivities to push economy to progress. By means of the developower theory, we can explain some...

Demand saturation occurs along with economic development, but the theoretical basis for demand saturation is lacking. This study adds to literature by proposing a novel concept named utilization cost, which denotes the physical or mental burden incurred to obtain utility. Correspondingly, we...

Capital flight aggravates resource constraints and contributes to undermine long-term economic growth. Counterfactual calculations on the Philippines suggest that capital flight contributed to lower the quality of long-term economic growth. Sustained capital flight over three decades means that...

The post-World War II period has seen substantial changes in labor productivity around the world. Motivated by these changes, this article documents four facts about the world productivity distribution. First, there is a large and increasing disparity between the tails. Second, this disparity...