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We analyze investment decisions when information is costly, with and without delegation to an agent. We use a rational-inattention model and compare it with a canonical signal-extraction model. We identify three "investment conditions". In "sour" conditions, no information is acquired and no...
Persistent link: https://www.econbiz.de/10011667675
This paper examines the importance of institutional shocks to long-run development. Our empirical method offers a clear empirical test to distinguish between three models of institutional shocks. We define gradual institutional change without a major shock, institutional change imposed by a...
Persistent link: https://www.econbiz.de/10014113815
This article re-examines the relationship between constitutional monarchy and economic growth in Europe. We suggest that economic growth explains the survival of constitutional monarchy rather than vice versa. The empirical results are consistent with our hypothesis
Persistent link: https://www.econbiz.de/10013229731
In the European political discourse, the potentially vast economic benefits derived from the European Union are taken for granted. In the academic debate, these economic benefits, even if measured in terms of GDP per capita growth, are much less consensual. There are severe methodological...
Persistent link: https://www.econbiz.de/10012837929
This paper reconstructs Revealed Comparative Advantages (RCA) and Economic Complexity Indices (ECI) for a large number of countries in the second half of the 19th century, by using data from the catalogues of five universal exhibitions held in Paris in 1855, 1867, 1878, 1889, and 1900. This...
Persistent link: https://www.econbiz.de/10012030426
It is well known that protestant and puritan environments historically have fostered entrepreneurs. This paper looks at serial entrepreneurship which took place in Norway in the 19th century in networks led by the puritan leader Hans Nielsen Hauge (1771-1824) and his followers.The paper seeks to...
Persistent link: https://www.econbiz.de/10014094593
The present paper looks at the Weber-Tawney thesis on the positive link between Protestant ethic and economic growth. Both scholars observed that Protestant areas in the Western world seemed to gain faster and more wealth than areas with less Protestants, and largely explained this by a special...
Persistent link: https://www.econbiz.de/10014096132
In general, empirical studies on economics rely on the assumption of constant capital share of income both at the aggregate level and at the sector level. However, there is no empirical evidence supporting the constancy of capital share at the sector level. In this paper, using Colombian data,...
Persistent link: https://www.econbiz.de/10014197301
Robert Solow (1958) argued that, from 1929-1954, U.S. aggregate labor's share was not stable relative to what we would expect given individual industry labor's shares. I confirm and extend this result using data from 1958-1996 that includes 35 industries (roughly 2-digit SIC level) and spans the...
Persistent link: https://www.econbiz.de/10014067450
The marriage of Ferdinand of Aragon and Isabella of Castile in 1469 began the process of the eventual unification of Spain. Over the ensuing decades, Spain finally conquered the Muslims at Granada in 1492 and completed the Reconquista. Spain then began a period of imperial expansion with...
Persistent link: https://www.econbiz.de/10014105441