A three period overlapping generations model is developed to investigate the impact of shorter life expectancy due to disease, on human capital investment decisions and income growth. This research is particularly relevant to Sub-Saharan Africa given the dramatic reduction in life expectancy due...

Replaced with revised version of paper 08/24/09.

Replaced with revised version of paper 08/24/09.

A three period overlapping generations model is developed to investigate the impact of shorter life expectancy due to disease, on human capital investment decisions and income growth. This research is particularly relevant to Sub-Saharan Africa given the dramatic reduction in life expectancy due...

The author of this note takes it as self evident that prosperity and the provision of "things" (buildings, roads, furniture, furnishings, clothes, machines and equipment of all sorts) go together. The way people generally speak and act is in line with this view. If this is so, domestic...

We examine the contribution of incremental and radical innovations to total factor productivity (TFP) growth at the firm level. The first part of our analysis is dedicated to the determinants of innovation and reveals two different innovation regimes. On the one hand, radical innovations rely...

This paper investigates differences in the rate of growth of population across the large city-regions of the EU12 between 1980 and 2000. The US model which assumes perfect factor mobility does not seem well adapted to European conditions. There is evidence strongly suggesting that equilibrating...

Past research on aid and growth is flawed because it typically examines the impact of aggregate aid on growth over a short period, usually four years, while significant portions of aid are unlikely to affect growth in such a brief time. We divide aid into three categories: (1) emergency and...

This paper analyzes the influence of risk and the expenditure policy of the public sector in a two-country stochastic AK growth model where public spending is utility-enhancing. Having characterized the macroeconomic equilibrium first we study the impact of risk and the public sector on...

In a simple theoretical framework, the quality of institutions affects individual’s investment decisions, and hence income levels and distribution. When institutions deteriorates and inequalities increase, the incumbent undertakes redistributive taxation to maintain political support. The...