nep-gro New Economics Papers
on Economic Growth
Issue of 2022‒04‒04
seven papers chosen by
Marc Klemp
University of Copenhagen

  1. The Shadow of the Neolithic Revolution on Life Expectancy: A Double-Edged Sword By Franck, Raphael; Galor, Oded; Moav, Omer; Özak, Ömer
  2. Solving the longitude puzzle: A story of cocks, ships and cities By Martina Miotto; Luigi Pascali
  3. Technology Choice, Externalities in Production, and Chaotic Middle-Income Traps By Takao Asano; Akihisa Shibata; Masanori Yokoo
  4. Contribution of Human Capital Accumulation to Canadian Economic Growth By Audra Bowlus; Youngmin Park; Chris Robinson
  5. Factors affecting economic growth: empirical evidence from developing countries By Zieba, Marta; , Thi-Kieu-Trang; Mbugua, Rahab Njeri
  6. Health, income, and the Preston Curve: a long view By Prados de la Escosura, Leandro
  7. How Constant is Constant Elasticity of Substitution? Endogenous Substitution between Clean and Dirty Energy By Ara Jo; Alena Miftakhova

  1. By: Franck, Raphael; Galor, Oded; Moav, Omer; Özak, Ömer (Southern Methodist University)
    Abstract: This research explores the persistent effect of the Neolithic Revolution on the evolution of life expectancy in the course of human history. It advances the hypothesis and establishes empirically that the onset of the Neolithic Revolution and the associated rise in infectious diseases triggered a process of adaptation reducing mortality from infectious diseases while increasing the propensity for autoimmune and inflammatory diseases. Exploiting an exogenous source of variation in the timing of the Neolithic Revolution across French regions, the analysis establishes the presence of these conflicting forces - the beneficial effects on life expectancy before the second epidemiological transition and their adverse effects thereafter.
    Date: 2022–03–01
  2. By: Martina Miotto; Luigi Pascali
    Abstract: In the 19th century, the process of European expansion led to unprecedented changes in the urban landscape outside of Europe, with the urban population moving towards the coast and tripling in size. We argue that the majority of these changes can be explained by a single innovation, the chronometer, which allowed European explorers and merchants to measure longitude at sea. We use high-resolution global data on climate, ship routes, and demography from 1750 to 1900 to investigate empirically (i) the role of the adoption of the marine chronometer in re-routing trans-oceanic navigation, and (ii) the impact of these changes on the distribution of cities and population across the globe. Our identification relies on the differential impact of the chronometer across trans-oceanic sailing routes.
    Keywords: longitude, chronometer, gravity, globalization, trade, development
    JEL: F1 F15 F43 R12 R4
    Date: 2022–02
  3. By: Takao Asano (Okayama University); Akihisa Shibata (Kyoto University); Masanori Yokoo (Okayama University)
    Abstract: We incorporate external effects of capital on production and endogenous technology choice into the standard overlapping generations model. We demonstrate that our model can exhibit poverty traps, middle-income traps, and perpetual growth paths. We also show that these three phenomena coexist for some set of parameters and the economy caught in the middle-income trap can exhibit chaotic fluctuations in the long run. In obtaining these results in the standard overlapping generations model, the combination of technology choice and externalities in production plays a crucial role.
    Keywords: External effect; Technology choice; Overlapping generations model, Middle-income trap; Chaos
    Date: 2022–03
  4. By: Audra Bowlus; Youngmin Park; Chris Robinson
    Abstract: This paper quantifies the contribution of human capital accumulation to the growth of real gross domestic product (GDP) in Canada. GDP growth is decomposed into contributions from physical capital, hours worked, human capital supplied per hour and total factor productivity. Using a “flat spot” identification strategy, we separately estimate the price and quantity of human capital using wage data from the Labour Force Survey. We find that growth in human capital supplied per hour explains around one-fifth of GDP growth and two-thirds of the Solow residual over the period from 1997 to 2018. While growth in hours worked is expected to slow down in the near future, human capital supplied per hour is expected to continue to be an important driver of GDP growth.
    Keywords: Econometric and statistical methods; Labour markets; Potential output; Productivity
    JEL: D24 E24 J24 J31 O47
    Date: 2022–03
  5. By: Zieba, Marta; , Thi-Kieu-Trang; Mbugua, Rahab Njeri
    Abstract: The question around factors affecting economic growth in developing nations is widely debated as it influences the policies to promote economic welfare. This paper, therefore, determines the factors influencing economic growth in developing countries. By estimating a fixed-effect model with a panel dataset for 62 developing countries from 2010 to 2018, the study found that government spending and natural resource rents have a favourable impact on per capita GDP growth. In contrast, rising labour force participation and inflation stifle economic growth in these countries.
    Date: 2022–02–13
  6. By: Prados de la Escosura, Leandro
    Abstract: Well-being is increasingly viewed as a multidimensional phenomenon, of which income is only one facet. In this paper I focus on another one, health, and look at its synthetic measure, life expectancy at birth, and its relationship with per capita income. International trends of life expectancy and per capita GDP differed during the past 150 years. Life expectancy gains depended on economic growth but also on the advancement in medical knowledge. The pace and breadth of the health transitions drove life expectancy aggregate tendencies and distribution. The new results confirm the relationship between life expectancy and per capita income and its outward shift over time as put forward by Samuel Preston. However, the association between nonlinearlytransformed life expectancy and the log of per capita income does not flattenout over time, but becomes convex suggesting more than proportional increases in life expectancy at higher per capita income levels.
    Keywords: Well-Being; Life Expectancy; Per Capita Income; Inequality; Health Transition; Preston Curve
    JEL: F60 I15 N30 O50
    Date: 2022–03–29
  7. By: Ara Jo (Center of Economic Research (CER-ETH), ETH Zürich, Zürichbergstrasse 18, 8032 Zürich, Switzerland); Alena Miftakhova (Center of Economic Research (CER-ETH), ETH Zürich, Zürichbergstrasse 18, 8032 Zürich, Switzerland)
    Abstract: The degree of substitutability between clean and dirty energy plays a central role in leading economic analyses of optimal environmental policy. Despite the importance, a constant and exogenous elasticity of substitution has been a dominant theoretical approach. We challenge this assumption by developing a dynamic general equilibrium model with an endogenous elasticity of substitution that interacts with the relative share of clean inputs in the economy. We find strong dynamic feedback effects arising from endogenous substitution capacity that amplifies the impact of directed technical change and accelerates the transition to a green economy
    Keywords: Elasticity of substitution, directed technical change, climate change
    JEL: Q40 Q55 Q54 O33
    Date: 2022–03

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