We combine the augmented Solow model with the Mincer equation to derive a specification that identifies an education externality within a production function framework. The previous empirical literature has not reached a consensus about the size of the education externality, which is given by...

We document the recent phenomenon of uphill flows of capital from nonindustrial toindustrial countries and analyze whether this pattern of capital flows has hurt growth innonindustrial economies that export capital. Surprisingly, we find that there is a positivecorrelation between current...

To facilitate the transformation of the German economy from the traditional manufacturing industries towards emerging new technologies, a new segment of the Frankfurt exchange was introduced in 1997 - Der Neue Markt. This study provides evidence that not only did many new firms obtain funding...

We discuss long-run growth in an economy which is subject toaggregate productivity shocks affecting all factors of production. Wedemonstrate that the presence of labor income risk unambiguously isan important determinant of long-run expected growth. The issue ofdynamic inefficiency of the...

This paper discusses a two-sector neoclassical overlapping generationseconomy with intermediate and final goods in the spirit of Romer(1990). The risk averse agents engage in one of two alternative occupations:either firm-ownership in the intermediate goods sector, characterizedby monopolistic...

We analyze the effects of offshoring in a multisector-growth-model where the sectors differ by TFP-growth. Our results imply that offshoring influences the long run grwoth rate of the economy along different channels and that the grwoth effects depend on the development of terms of trade and on...

We hypothesise that, given the typically uneven distribution of ethnic groups within acountry, ethnic diversity leads to greater local polarization and more frequent, butsmaller, conflicts that involve only some ethnic groups. These conflicts can beoverlooked if the number of fatalities is...

Choice experiments show that individuals attribute significant value to digitally-enabled services such as social media. We integrate this consumer value into an accounting framework by treating it as the value of own-account production by households of a particular type of leisure services....

In this paper, we examine whether, and if so how, an economy's deliberate policy choices of regional cooperation and integration influence underlying determinants of economic growth. Building on models of growth and innovation, we analyze the role of regional integration on labor productivity...

In this paper, we examine whether, and if so how, an economy's deliberate policy choices of regional cooperation and integration influence underlying determinants of economic growth. Building on models of growth and innovation, we analyze the role of regional integration on labor productivity...