As the Draghi report shows, Europe needs to undergo a fundamental transformation in order to escape its 'mid-technology trap'. Mainstream economic theory offers little guidance on how to achieve this. A critical review of neoclassical growth theory shows that in these models, growth and...

This paper presents an examination of how political corruption affects economic growth and the dynamic behavior related to environmental issues. Attempts by the private sector to intervene in government environmental policy might affect environmental policy, the dynamic behavior of the economy,...

We study a discrete-time optimal growth model with endogenous discounting. The discount factor may depend on both consumption and the capital stock, and intertemporal utility is modeled as a discounted sum of instantaneous utilities, with the sum of discount factors equal to one. We show that...

This paper studies how individuals sort into entrepreneurship and invention-related occupations and how their interactions shape innovation and economic growth. We develop an endogenous growth model in which occupational sorting jointly determines the supply of R&D talent and entrepreneurs'...

This study incorporates two heterogeneous industries into an endogenous growth model within the framework of a circular economy. In the model, industries are classified as either brown or green, and each can transition between states through R&D activities related to innovation and greening....

I investigate how taxing immigrants and redistributing the collected funds as educational subsidies influence human capital accumulation and growth in the source economy. The analysis is performed in a two-country growth model with endogenous fertility, in which public knowledge spillovers from...

This paper investigates how the cash-in-advance (CIA) constraints that firms face in production and innovation decisions affect the long-run relationship between monetary policy and innovation-based economic growth. Firms produce differentiated product varieties and invest in process innovation...

We build an endogenous growth model that distinguishes productive and welfare government expenditures and embeds fiscal externalities. The model yields three testable hypotheses: (i) productive expenditure raises growth (Barro effect); (ii) productive expenditure generates cross-country...

Technological change, an overwhelming fact in recent socioeconomic history, involves, as Joseph A. Schumpeter famously put it, "creative destruction" on a large scale: it gives rise to new goods, production methods, firms, organisations, and jobs, while rendering some received ones obsolete. Its...

What sparked humanity's leap from stagnation to prosperity? What lies at the core of inequality among nations? Unified Growth Theory explores the evolution of societies over the entire course of human history. It uncovers the universal wheels of change that have governed the journey of humanity,...

This research conducts a comparative study of the economic growth and income distribution effects of consumption and comprehensive income taxes by introducing them into an endogenous economic growth model with human capital formation. We obtained the following results. First, consumption tax...

Scrutinizing post-Keynesian theory of endogenous technical progress and Régulation Theory, this paper examines productivity growth and its variation within capitalist economies. The aim is to identify how institutions steer productivity growth. Based on the vast literature demonstrating that...

This study examines the impact of regional innovation factors and their dynamic interactions on regional economic growth. Using a 10-year panel dataset from 17 provinces and cities in South Korea, we analyze the data using panel data regression and explore non-linear relationships with the...

We study clean energy production subsidies in a quantitative climate-economy model. Clean energy production subsidies decrease carbon emissions if and only if they lower the marginal product of dirty energy. The constrained-efficient production subsidy equals the marginal external cost of dirty...

This paper provides novel empirical evidence on the impact of monetary policy on innovation investment using unique firm-level data. First, we document the effect of a large, systematic monetary tightening (ECB rate increases from 0% to 4.5% during 2022-23), with average firm-level innovation...

The optimal capital income tax rate has been shown to be nonzero in overlapping generations (OLG) models, as it helps redistribute income between cohorts and individuals with different labor supply elasticities and individual productivities. We show in a medium-scale OLG model that the optimal...