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on Economic Growth |
| By: | Anne Sofie Beck Knudsen (Department of Economics, University of Copenhagen, Denmark) |
| Abstract: | This paper examines the joint evolution of emigration and individualism in Scandinavia during the Age of Mass Migration (1850-1920). A long-standing hypothesis holds that people of a stronger individualistic mindset are more likely to migrate as they suffer lower costs of abandoning existing social networks. Building on this hypothesis, I propose a theory of cultural change where migrant self-selection generates a relative push away from individualism, and towards collectivism, in migrantsending locations through a combination of initial distributional e¤ects and channels of intergenerational cultural transmission. Due to the interdependent relationship between emigration and individualism, emigration is furthermore associated with cultural convergence across subnational locations. I combine various sources of empirical data, including historical population census records and passenger lists of emigrants, and test the relevant elements of the proposed theory at the individual and subnational district level, and in the short and long run. Together, the empirical results suggest that individualists were more likely to migrate than collectivists, and that the Scandinavian countries would have been considerably more individualistic and culturally diverse, had emigration not taken place. |
| Keywords: | Culture, individualism, migration, selection, economic history |
| JEL: | Z10 F22 O15 R23 N33 |
| Date: | 2019–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kuiedp:1901&r=all |
| By: | Hippolyte D'Albis (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics); Angela Greulich (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, INED - Institut national d'études démographiques); Grégory Ponthière (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12) |
| Abstract: | During the last century, fertility has exhibited, in industrialized economies, two distinct trends: the cohort total fertility rate follows a decreasing pattern, while the cohort average age at motherhood exhibits a U-shaped pattern. This paper proposes a Unified Growth Theory aimed at rationalizing those two demographic stylized facts. We develop a three-period OLG model with two periods of fertility, and show how a traditional economy, where individuals do not invest in education, and where income rises push towards advancing births, can progressively converge towards a modern economy, where individuals invest in education, and where income rises encourage postponing births. Our findings are illustrated numerically by replicating the dynamics of the quantum and the tempo of births for cohorts 1906-1975 of the Human Fertility Database. |
| Keywords: | regime shift,fertility,childbearing age,births postponement,human capital |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01848098&r=all |
| By: | Steven Bond-Smith (Bankwest Curtin Economic Centre, Curtin University) |
| Abstract: | This article considers the effect of a discrete entry barrier (i.e. an integer number of firms) in an endogenous growth model to draw conclusions about the relationship between contestability, innovation and growth. Sector-specific workers provide a tool for calibrating numerical examples. Sectors with lower entrepreneurial contestability have lower innovation and sectors characterized by Cournot oligopoly have lower innovation than sectors characterized by Bertrand. Wage inequality varies depending on the extent that the entry barrier is binding upon a marginal entrant. The model offers policy implications to support entrepreneurial entry, particularly in relatively small or isolated regional economies. |
| Keywords: | innovation, contestability, Cournot, Bertrand, competition, endogenous growth |
| JEL: | O41 L13 |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:ozl:bcecwp:wp1804&r=all |
| By: | Thomas Baudin (IÉSEG School of Management); David de la Croix (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)); Paula E. Gobbi (ECARES, Université libre de Bruxelles & CEPR, London) |
| Abstract: | This paper provides an introduction to the analysis of childlessness, first by describing the stylized facts and the relevant literature, and then by proposing a theoretical framework. We show that both poverty-driven childlessness and opportunity-driven childlessness matter and are essential to a thorough understanding of childlessness as a socioeconomic phenomenon. |
| Keywords: | Childlessness, fertility, education, marriage, children, sterility, economic development, poverty-driven childlessness, opportunity-driven childlessness, female empowerment, childcare, Malthusian economy, educational homogamy, reproductive health, demographic economics, developed countries, developing countries, historical childlessness, quantity and quality of children, inequality |
| JEL: | J11 O11 O40 |
| Date: | 2019–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2019001&r=all |
| By: | Benos, Nikos; Tsiachtsiras, Georgios |
| Abstract: | In this paper we explore the effect of innovation on income inequality using annual country panel data for 29 countries. We demonstrate that innovation activities reduce personal income inequality by matching patents from the European Patent Office with their inventors. Our findings are supported by instrumental variable estimations to tackle endogeneity. The results are also robust with respect to various inequality measures, alternative quality indexes of innovation, truncation bias, the use of patent applications together with granted patents and different ways to split or allocate patents. |
| Keywords: | top income inequality, overall inequality, innovation, citations, knowledge spillovers |
| JEL: | D63 O30 O31 O33 O34 O40 O47 |
| Date: | 2019–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:92050&r=all |
| By: | Jean-Pierre Drugeon (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Bertrand Wigniolle (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This article considers the long-run equilibrium distribution of an economy populated by heterogenous and present biased quasi-hyperbolic discounting agents. In a first configuration with logarithmic utility functions and Cobb-Douglas production technologies, this article establishes the existence and the uniqueness of the equilibrium: only one agent, determined by the highest value of a coefficient building from both the degree of present bias and the rate of discount, will have a positive long-run consumption and a positive long-run wealth. A second configuration with constant elasticities of substitution utilities and linear production technologies is then considered. This article similarly establishes the existence and the uniqueness of the equilibrium. There is generically a unique agent with the highest growth rate for his consumption and his wealth. This agent is determined by both preferences and technology parameters and may change following a technological shock. |
| Keywords: | Heterogeneities,quasi-hyperbolic discounting,linear decision rules |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01962004&r=all |
| By: | Jan Witajewski-Baltvilks; Carolyn Fischer |
| Abstract: | If one region of the world switches its research effort from dirty to clean technologies, will other regions follow? To investigate this question we built a North-South model that combines insights from directed technological change and quality ladder endogenous growth models. We allow researchers in the South to create business-stealing innovations. We found that (i) after the North switches from dirty to clean technologies, the growing value of clean markets will motivate technology firms in the South to follow the switch; however this result is conditional on the North being sufficiently large. (ii) If the two regions invest research effort to different sectors and the outputs of the two sectors are gross substitutes, then the long run growth rates in both regions are smaller than if the global research effort were to be invested in one sector. (iii) If the North switches to R&D in clean technologies, the benevolent central planner in the South would ensure that all South R&D switches too, unless the planner’s discount rate is high. |
| Keywords: | directed technological change, green growth, endogenous growth model, cross-country spillovers, unilateral climate policy, green R&D subsidies |
| JEL: | O33 O41 O44 Q55 Q56 |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:wpaper:wp102018&r=all |
| By: | Imad El Hamma (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique, ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12) |
| Abstract: | This paper investigates the conditional effects of remittances on economic growth in 14 Middle East and North Africa (MENA) countries. Using unbalanced panel data over the period 1982‐2016, we study the hypothesis that the effect of remittances on economic growth varies depending on the level of financial development and institutional environment in recipient countries. We use Two‐Stage Least Squares (2SLS/IV) instrumental variables method in which we address the endogeneity of remittances. Our results reveal a complementary relationship between financial development and remittances to ensure economic growth. The estimations show that remittances promote growth in countries with a developed financial system and a strong institutional environment. |
| Keywords: | financial development,institutions quality,Remittances,economic growth |
| Date: | 2019–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01948169&r=all |