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on Financial Development and Growth |
| By: | Tetsuo Ono (Graduate School of Economics, Osaka University) |
| Abstract: | This study presents an overlapping-generations model featuring endogenous growth, collective wage-bargaining, and probabilistic voting over fiscal policy. We charac- terize a Markov-perfect political equilibrium of the voting game within and across generations and show the following results. First, greater bargaining power of unions lowers the growth rate of capital and creates a positive correlation between unem- ployment and government debt. Second, greater political power of the old lowers the growth rate and shifts government expenditure from the unemployed to the old. Third, a balanced budget requirement increases the growth rate but may benefit the old at the expense of the unemployed. |
| Keywords: | Economic Growth; Fiscal Policy; Government Debt; Unemployment; Voting |
| JEL: | E24 E62 H60 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:1430&r=fdg |
| By: | Ekrame Boubtane (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Jean-Christophe Dumont (OECD - Organisation for Economic Cooperation and Development) |
| Abstract: | This paper presents a reappraisal of the impact of migration on economic growth for 22 OECD countries between 1986 and 2006. It is based on a unique dataset that enables to distinguish net migration of the native-born and foreign-born by skill level. Migration is introduced in an augmented Solow-Swan model and the results are obtained using a GMM estimation, in order to deal with the potential endogeneity of the migration variables. In this framework, we identify a positive impact of the human capital brought by migrants on economic growth. The contribution of immigrants to the human capital accumulation tends to dominate the mechanical dilution effect, but the net effect is fairly small, including in countries which have highly selective migration policies. |
| Keywords: | International migration; human capital; economic growth; generalized methods of moments |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00800617&r=fdg |
| By: | Michalis Nikiforos |
| Abstract: | The paper examines the long-run fluctuations in growth and distribution through the prism of wage-and profit-led growth. We argue that the relation between distribution of income and growth changes over time. We propose an endogenous mechanism that leads to fluctuations between wage- and profit-led periods. Our model is a linear version of Goodwin's predator–prey model, but with a reversal of the roles for predator and prey: the growth rate acts as the predator and the distribution of income as the prey. These fluctuations need to be taken into account when someone estimates empirically the effect of a change in distribution on utilization and growth. We also examine our argument in relation to the double movement of Karl Polanyi, the Kuznets curve, and the theories of long swings proposed by Albert Hirschman and Michal Kalecki. |
| Keywords: | Distribution-led; Long Swings; Oscillations; Predator-prey |
| JEL: | B22 E11 E12 E21 E22 E32 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_814&r=fdg |
| By: | Guglielmo Maria Caporale; Stefano Di Colli; Roberto Di Salvo; Juan Sergio Lopez |
| Abstract: | This paper provides new evidence on the contribution of local banking to local economic growth (i.e. at county level - the Italian "province") in Italy. A comprehensive dataset is used, which includes control variables for social capital and human capital as well as indicators of the quality of local infrastructures and the production structure of the local economy. A linear within-estimator technique with fixed effects is applied to a modified version of the so-called Barro regression (Cecchetti and Karrhoubi, 2013) in order to address the well-known econometric issues of reverse causality and estimation bias resulting from unobserved district-specific influences. |
| Keywords: | Bank lending, local growth, panel data |
| JEL: | C33 E44 G01 G32 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1409&r=fdg |