|
on Economic Growth |
| By: | Emilio Depetris-Chauvin; Ömer Özak |
| Abstract: | We explore the effect of historical ethnic borders on contemporary conflict in Africa. We document that both the intensive and extensive margins of contemporary conflict are higher close to historical ethnic borders. Exploiting variations across artificial regions within an ethnicity’s historical homeland and a theory-based instrumental variable approach, we find that regions crossed by historical ethnic borders have 27 percentage points higher probability of conflict and 7.9 percentage points higher probability of being the initial location of a conflict. We uncover several key underlying mechanisms: competition for agricultural land, population pressure, cultural similarity, and weak property rights. |
| Keywords: | Borders, Conflict, Territory, Property Rights, Landownership, Population Pressure, Migration, Historical Homelands, Development, Africa, Voronoi Tessellation, Thiessen Tessellation |
| JEL: | D74 N57 O13 O17 O43 P48 Q15 Q34 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ioe:doctra:573&r=gro |
| By: | Qixin Zhan (China Economics and Management Academy, Central University of Finance and Economics); Junzhu Zhao (China Economics and Management Academy, Central University of Finance and Economics); Heng-fu Zou (The World Bank; Institute for Advanced Study, Wuhan University; Institute for Advanced Study, Shenzhen University) |
| Abstract: | This paper studies the intricate relationship between investments in the rule-of-law capital and phys- ical production capital within a dynamic model of optimal growth and development. It highlights the mutual influence between institutional changes, such as those in the rule of law, property rights, and legislation systems, and economic performance over time and across different nations. Notably, it sheds light on how the escalating expenses associated with upholding the rule of law, coupled with the swift erosion of rule-of-law capital, can impede long-term economic growth and development. Conversely, the escalating costs and rapid depreciation of physical capital accumulation can significantly undermine the rule of law. In particular, overlegislation is harmful for both the rule of law and economic development. By elucidating these dynamics, this paper offers insights into the complex interplay between legal institutions and economic prosperity. |
| Date: | 2024–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:cuf:wpaper:624&r=gro |
| By: | Selahattin Imrohoroglu |
| Abstract: | It is well known that land does not prevent dynamic inefficiency (a rate of capital accumulation higher than the Golden rule level, or, a return to capital, MPK, less than the economys growth rate, g) if land is subject to a transaction tax. This paper attempts to evaluate quantitatively the potency of this argument, both positively as well as normatively. Using a heterogenous-agent, general equilibrium overlapping generations growth model calibrated to the U.S. economy, the main quantitative finding is that a 6.18% tax on the sale of land produces balanced growth paths that exhibit dynamic inefficiency. When an unfunded social security system is introduced, the economy moves toward dynamic efficiency, welfare improves, and the optimal replacement rate is 70%. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:cnn:wpaper:24-002e&r=gro |
| By: | Stan Metcalfe (Manchester Institute of Innovation Research, The University of Manchester) |
| Abstract: | This lecture explores the evolution of economics as a discipline during 1870-1920, focusing on the critical question of wealth creation from knowledge. It highlights the tension between understanding economic structures and their transformative growth, with special attention to Alfred Marshall and Joseph Schumpeter's insights on the evolving nature of capitalism and innovation's role in economic development. By contrasting their views — Schumpeter's emphasis on disruptive innovation and Marshall's on gradual change — the lecture underscores the significance of innovation and knowledge in driving economic transformation. This discussion aims to illuminate the complex relationship between knowledge, innovation, and economic dynamics, essential for understanding the workings of modern economies. |
| Keywords: | Economic Evolution, Innovation and Growth, Schumpeter and Marshall, Wealth from Knowledge, Historical Economics |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdj:smioir:2024-02&r=gro |
| By: | César Huaroto; Francisco Gallego |
| Abstract: | This paper studies the persistent effect on social unrest of the Mining Mita- a colonial forced labor and migration institution that affected indigenous communities in Peru between 1573 to 1811. Using a geographical regression discontinuity design for identification, we provide causal evidence that Mita areas have experienced higher levels of social unrest since the end of the 18th century. We present a simple conceptual rationale with historical and causal evidence indicating that at least part of the roots of such persistence is cultural. Specifically, people living in Mita districts identify more with the indigenous groups and indigenous institutions, are more likely to speak native languages, are less likely to migrate, and have different beliefs about development and democracy. |
| JEL: | D74 I38 J15 N26 O10 O43 P14 Z10 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ioe:doctra:568&r=gro |