Evidence from a current panel of harmonized worldwide data highlights a robust negative effect of income inequality on economic growth that we trace back to its transmission channels. Less equal societies tend to have less educated populations and higher fertility rates, but not necessarily...

We use the US presidential election on 3 November 2020 to examine how the US president influences economic expectations of international experts. We design a large-scale RCT among 843 experts working in 107 countries, asking about their expectations regarding GDP growth, unemployment, inflation,...

This paper explores the determinants of stagflation. Three measures are proposed that gauge both the occurrence and the strength of stagflation. We investigate the empirical determinants of these measures, accounting for a range of theoretical hypotheses that have been discussed since the...

Does the financial sector contribute to economic growth? While most of the studies carried out before the Financial crisis tend to answer the question with “yes”, recent empirical work provides evidence that the opposite is true. We study these new findings in detail, applying GMM and 3SLS...

We study the effect of entrepreneurship on economic growth. First, we illustrate that entrepreneurship affects the investment decision in horizontal and vertical innovations within endogenous growth models. As a direct consequence, the level of entrepreneurship exerts significant growth stimuli....

Stagflation has decayed the world economy during the 1970s and the early 1980s. Recent empirical studies suggest that particularly the oil crises of 1973 and 1979 led to these high stagflationary periods. However, there are still some questions unanswered: is stagflation still a problem in the...

Throughout the world, strong dispersions of both regional and national unemployment rates can be observed. The economic theory has developed various explanations on how this differences occur. Corresponding models mainly aim at institutional and political framework, insider effects, efficiency...