The goal of this study is to contribute to the debate on the role of government spending in shaping the growth process. We take the analysis in three new directions. First, we investigate the role of government spending in a scale-invariant Schumpeterian model of endogenous innovation. Second,...

The government of China, to hone manufacturing’s competitive edge, has adopted a series of regional industrial policies to stimulate advanced manufacturing clusters as facilitators of agglomeration effects, utilisers of factor endowments, and implementers of innovation solutions, by playing...

How does the interplay between natural selection, household education choices, and R&D activities shape our macroeconomic trajectory? To explore this question, we develop an innovation-driven growth model that connects household heterogeneity in education ability with endogenous fertility and...

The goal of this study is to contribute to the debate on the role of government spending in shaping the growth process. We take the analysis in three new directions. First, we investigate the role of government spending in a scale-invariant Schumpeterian model of endogenous innovation. Second,...

How does taxation affect growth and inequality? We develop a Schumpeterian model with wealth heterogeneity, which influences the effects of tax policy. Our model features iso-elastic utility on leisure under which the change in consumption dispersion across heterogeneous households may cause a...

The paper pursues the goal: at a specific object of observation, the scientific school of the regional agrarian university, to consider the prospects in the context of responding to the challenges of the time, characterized by turbulence of world economic relations. Working hypothesis: based on...

We develop an endogenous growth model incorporating the spirit of capitalism and examine how it influences innovation and economic growth. In the benchmark homogeneous-ability model, we find that the spirit of capitalism increases both the capital accumulation rate by enhancing consumer patience...

Does wealth inequality affect optimal patent policy? This study develops a Schumpeterian growth model with heterogeneous households to explore this question. Our model features a general innovation specification that nests two common specifications: (a) the knowledge-driven specification that...

Although small and medium-scale enterprises (SMEs) finance and technical support have become critical economic development strategies for many countries in Africa and numerous micro-level studies have examined their effects on firm performance, evidence of how SMEs impact economic growth and the...

Is agricultural productivity conducive to economic development? We develop a two-country open-economy Schumpeterian growth model with endogenous takeoff. With agricultural trade and a subsistence requirement, higher domestic agricultural productivity has ambiguous effects on the economy's...