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on Economic Growth |
| By: | Domenico Delli Gatti; Jakob Grazzini; Domenico Massaro; Fabrizio Panebianco |
| Abstract: | Patience affects economic growth, no news. This paper investigates the opposite causal relationship, i.e., how growth influences patience. We propose a simple theoretical framework where heterogeneous parents may choose to transmit their cultural trait - patience - to their offspring. Our model shows that parental effort to educate children to patience positively depends on economic growth. We test empirically this result using both country-level and individual data and show that, coherently with the model’s prediction, growth has a significant impact on the effort to teach patience. |
| Keywords: | growth, patience, cultural transmission |
| JEL: | D15 D91 E21 O47 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9829&r= |
| By: | Francesco Cinnirella; Erik Hornung; Julius Koschnick |
| Abstract: | Economic societies emerged during the late eighteenth-century. We argue that these institutions reduced the costs of accessing useful knowledge by adopting, producing, and diffusing new ideas. Combining location information for the universe of 3,300 members across active economic societies in Germany with those of patent holders and World’s Fair exhibitors, we show that regions with more members were more innovative in the late nineteenth-century. This long-lasting effect of societies arguably arose through agglomeration economies and localized knowledge spillovers. To support this claim, we provide evidence suggesting an immediate increase in manufacturing, an earlier establishment of vocational schools, and a higher density of highly skilled mechanical workers by mid-nineteenth century in regions with more members. We also show that regions with members from the same society had higher similarity in patenting, suggesting that social networks facilitated spatial knowledge diffusion and, to some extent, shaped the geography of innovation. |
| Keywords: | economic societies, useful knowledge, knowledge diffusion, innovation, social networks |
| JEL: | N33 O33 O31 O43 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9836&r= |
| By: | Toke Aidt (Faculty of Economics - CAM - University of Cambridge [UK]); Jean Lacroix (RITM - Réseaux Innovation Territoires et Mondialisation - Université Paris-Saclay); Pierre-Guillaume Méon (Centre d'Etudes Economiques et Sociales de l'Environnement-Centre Emile Bernheim - ULB - Université libre de Bruxelles) |
| Abstract: | This paper studies a new mechanism that allows political elites from a non-democratic regime to survive a democratic transition: connections. We document this mechanism in the transition from the Vichy regime to democracy in post-World War II France. The parliamentarians who had supported the Vichy regime were purged in a two-stage process where each case was judged twice by two different courts. Using a difference-indifferences strategy, we show that Law graduates, a powerful social group in French politics with strong connections to one of the two courts, had a clearance rate that was 10 percentage points higher than others. This facilitated the persistence of that elite group. A systematic analysis of 17,589 documents from the defendants' dossiers is consistent with the hypothesis that the connections of Law graduates to one of the two courts were a major driver of their ability to avoid the purge. We consider and rule out alternative mechanisms. |
| Keywords: | Purges,Political transitions,Elite persistence,Connections JEL Codes: D73,K40,N44,P48 |
| Date: | 2022–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03677580&r= |
| By: | Jake Bradley; Axel Gottfries |
| Abstract: | We embody a technological diffusion process into the canonical search and matching model of the labor market. New matches imitate the production process of incumbents. The resulting model retains the features of a labor search model whilst also generating endogenous growth through creative destruction. The model is calibrated to standard moments from the US labor market and generates, consistent with data, an order of magnitude more amplification in unemployment than a similarly calibrated model without endogenous growth. The model provides a natural framework to decompose the sources of growth based on labor market flows. Using cross-country data for 32 countries across a broad range of development, we find that growth via creative destruction is quantitatively more important for developing countries. |
| Keywords: | labour market dynamics; growth |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:not:notcfc:2022/02&r= |
| By: | Grant Fleming; Frank Liu; David Merrett; Simon Ville |
| Abstract: | Australia has been a large consumer of patented offshore technology, which has led several authors to criticise the domestic innovation system. We deploy a new dataset of 1.4 million patent applications across a century to evaluate empirically this perspective. Our results reveal that Australians held an important though diminishing share of patents and indicate the shifting contribution among other nations. Using revealed technology advantage, we show that local patenting focussed on areas key to the growth of the Australian economy. |
| Keywords: | Innovation System; Patents; Revealed Technological Advantage; Australia; Natural Resources |
| JEL: | O13 O31 N77 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:auu:hpaper:108&r= |
| By: | Puonti, Päivi |
| Abstract: | Abstract Corporate investment is crucial for productivity growth. When economic growth is sluggish and productivity growth weak, the government is likely to compensate the shortage of tax revenues with debt. The aim of this research is to study the connection between public indebtedness and productivity growth from the point of view of private investment. According to existing economic research, public debt crowds out private investment slowing down both economic and productivity growth. Our statistical analysis suggests that public debt crowds out private investment and hampers economic growth in Finland, as the share of the corporate sector in the economy decreases with the increase in public indebtedness. Public debt boosts public investment in addition to other expenditure categories, resulting in a leverage effect of private investment in the medium term. This crowding in effect compensates for the negative growth impact of crowding out. The impact occurs at business-cycle frequencies rather than in the long run. This is likely due to the relatively small share of public R&D investment. |
| Keywords: | Public debt, Private investment, Productivity, Crowding out |
| JEL: | E22 H63 O40 O47 |
| Date: | 2022–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:130&r= |
| By: | Grant Fleming; Frank Liu; David Merrett; Simon Ville |
| Abstract: | We examine the long run relationship between innovation and economic development in Australia, using 150 years of data on patenting activity, and aggregate and sectoral economic indicators. Our initial results point to several important causal relationships, particularly the effects of patents on real GDP and of private capital formation on patents. We delve deeper at the sector level and find important causal relationships of patents with real foreign direct investment (FDI) since World War Two. Australia’s dependence on FDI for private capital formation served as an important stimulus for knowledge creation in key sectors including agriculture and mining. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:auu:hpaper:107&r= |
| By: | Sascha O. Becker (Monash U and U Warwick, CAGE, CEHANU, CEPR, CESifo, CReAM, ifo, IZA, ROA, and SoDaLabs); Sharun Mukand (U Warwick and CAGE); Ivan Yotzov (U Warwick and CAGE) |
| Abstract: | Persecution, pogroms, and genocide have plagued humanity for centuries, costing millions of lives and haunting survivors. Economists and economic historians have recently made new contributions to the understanding of these phenomena. We provide a novel conceptual framework which highlights the inter-relationship between the intensity of persecution and migration patterns across dozens of historical episodes. Using this framework as a lens, we survey the growing literature on the causes and consequences of persecution, pogroms, and genocide. Finally, we discuss gaps in the literature and take several tentative steps towards explaining the differences in survival rates of European Jews in the 20th century. |
| Keywords: | Genocide, Persecution, Migration, Immigration restrictions, Exit or Voice |
| JEL: | D74 F22 F51 N4 O15 R23 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2022-18&r= |
| By: | Claude Diebolt; Michael Haupert |
| Abstract: | This contribution will take you on a journey from the origins of economic history through its triumphs and travails which lead us to what we believe is a bright future for an invigorating discipline. |
| Keywords: | Cliometrics, economic history, economics, history. |
| JEL: | A12 N00 N01 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2022-23&r= |