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on Economic Growth |
| By: | Cervellati, Matteo (University of Bologna); Meyerheim, Gerrit (LMU Munich); Sunde, Uwe (LMU Munich) |
| Abstract: | This research develops an expanded unified growth theory that incorporates the endogenous accumulation of physical capital, population, human capital, and technology. The model incorporates a complementarity between physical capital and human capital and can be extended to a multi-country setting with international technology diffusion. The analytical characterization of the mechanisms behind the observed patterns of long-run growth and comparative development delivers a consistent explanation for a large set of seemingly unrelated empirical facts. A quantitative multi-country version of the model matches various empirical regularities of long-run growth dynamics and comparative development patterns that have previously been studied in isolation. The findings also shed new light on the role of the demographic transition for convergence patterns, the specification of cross-country growth regressions, technology spillovers, and the secular stagnation debate. |
| Keywords: | unified growth; long-run development; demographic transition; secular stagnation; |
| JEL: | O47 O11 O15 E24 |
| Date: | 2022–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:339&r= |
| By: | Alberto Bisin; Thierry Verdier |
| Abstract: | In this paper we survey recent advances in the economic theory of cultural transmission. We highlight three main themes on which the literature has made great progress in the last ten years: the domain of traits subject to cultural transmission, the micro-foundations for the technology of transmission, and feedback effects between culture, institutions, and various socio-economic environments. We conclude suggesting interesting areas for future research. |
| JEL: | O10 P16 P48 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30466&r= |
| By: | Tom Vogl |
| Abstract: | Sub-Saharan Africa exhibits higher fertility and lower education than other world regions. Economic and demographic theory posit that these phenomena are linked, with slow fertility decline connected to slow education growth among both adults and children. Using microdata from 33 African countries, this paper documents the co-evolution of adult education, fertility, and child education in female birth cohorts surrounding the onset of the region's fertility transition. Fertility change displays a robust negative relationship with the educational outcomes of adult women but a more nuanced relationship with the educational outcomes of children. As fertility declines, children's grade attainment rises, but their school enrollment does not. The divergence is partly explained by a split in how women's education relates to fertility and child education. Rising women's education predicts declining fertility and rising children's grade attainment, but it is less systematically linked to enrollment change. |
| JEL: | I25 J13 O15 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30474&r= |
| By: | Spyridon Boikos (Department of Economics, University of Macedonia); Theodore Panagiotidis (Department of Economics, University of Macedonia); Georgios Voucharas (Department of Economics, University of Macedonia) |
| Abstract: | Is there any specific structure of the financial system which promotes economic growth or does this structure depend on the level of economic growth itself? Financial development and financial reforms affect economic growth, but less is known on how this effect varies across different levels of the conditional distribution of the growth rates. We examine this by using panel data for 81 countries for more than 30 years. We account for unobserved heterogeneity and operate within alternative econometric approaches. The findings indicate that financial reforms are important determinants of growth, especially when a country faces relatively low levels of economic growth. Financial development does matter for growth, however, the size and significance of the effect vary. Financial reforms affect economic growth more than financial development. We reveal that the components of financial reforms, which are more important for economic growth, are the supervision of banks and the regulation of securities markets. |
| Keywords: | Financial Development; Financial Reforms; Economic Growth; Quantile Regression; Panel Data |
| JEL: | O16 O40 G10 G20 C21 C23 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2022_07&r= |
| By: | Seka Vranic; Ruvejda Aliefendié; Tarik Sahovié; Imeldin Radaslié |
| Keywords: | Macroeconomics and Economic Growth - Investment and Investment Climate Macroeconomics and Economic Growth - Regional Economic Development Macroeconomics and Economic Growth - Spatial and Local Economic Development Macroeconomics and Economic Growth - Subnational Economic Development Private Sector Development - Business Environment Private Sector Development - Small and Medium Size Enterprises |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:35932&r= |
| By: | Matthew J. Baker (Hunter College); Joyce P. Jacobsen (Hobart and William Smith Colleges) |
| Abstract: | We discuss the interrelationship between treatment of the elderly, production technology, technological progress, and transmission of culture using a model in which respect for the elderly is endogenous. We focus our analysis on the relative well-being of the elderly, and employ the model to explain cross-societal patterns in the relative well-being of the elderly, encompassing hunter-gatherer, subsistence agriculture, and modern, fully-developed societies. One result is that the cultivation of culture and norms for respect for the elderly bears a nonlinear relationship with the level of development and other fundamental features of the economy, such as the degree to which property rights are defined. We discuss how the elderly might be impacted by modern demographic, technological, and policy changes in both developing and developed economies. |
| Keywords: | Elderly Treatment, Social Security, Gift-Giving, Inter Vivos Transfers, Economic Growth |
| JEL: | J14 D13 D14 D15 O41 O42 O43 P51 J11 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:htr:hcecon:452&r= |
| By: | Andreas Chai; Elena Stepanova; Alessio Moneta |
| Abstract: | Economic growth stimulates fundamental changes in consumption patterns, as consumers who get rich tend to spread their spending more evenly across a wider variety of goods and services. This diversification process magnifies the heterogeneity of spending patterns across the population of consumers within each country, as well as across countries. We empirically track how global consumption patterns grow more diverse as economies develop using entropy measures and show how different stages of economic development are characterized by major shifts in the distribution of final demand across goods and services. We study how this process exhibits path dependence and how economic growth stimulates increases in demand heterogeneity via rising income inequality on the macro level and rising household income on the micro level |
| Keywords: | Spending diversity; economic development; income elasticity; economic complexity. |
| Date: | 2022–10–02 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2022/29&r= |
| By: | Rodolphe Desbordes; Markus Eberhardt |
| Abstract: | The climate damage function used to assess the economic impact of secular changes in temperature and precipitation is one of the most speculative components of integrated assessment models of climate change. Whether detrimental effects of temperature change on economic prosperity are most significant for countries with low incomes or those with high temperatures is still an unresolved question in the literature, while changes in precipitation are widely regarded as not having any significant productivity effects. Existing work informing this debate is based on pooled empirical models incorporating simple interaction terms with ‘low income’ or ‘high temperature’, which further give little regard to long-term dynamics. We use aggregate and agricultural data for 154 countries over the past six decades to estimate dynamic heterogeneous models which (a) allow the weather-output nexus to differ freely across countries, (b) help distinguish short-run from long-run effects, and (c) account for unobserved time-varying heterogeneity. Our preferred specifications suggest that a temporary (permanent) 1?C rise in temperature is associated with a reduction in income per capita of 1.3% (14%) in high-temperature countries, with the long-run effects substantially larger than those commonly suggested in the literature. We find weaker differential effects by income-group. We further highlight that changes in precipitation levels can influence short-run and long-run agricultural output per worker in high-temperature or low-income countries, albeit to a very modest extent. |
| Keywords: | temperature, weather, climate change, economic development, economic growth |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:not:notgep:2022-06&r= |
| By: | Marc Germain (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper examines the path of an economy constrained by bio-physical limits, due to (i) limited natural capital availability and (ii) compliance with the postulate of strong sustainability. The economy tends towards a stationary state characterized by lower and higher endowments of natural capital and human factors respectively than in the initial state. But this evolution is not monotonous in the sense that GDP and consumption have a path in four phases: growth, reversal, decrease and a quasi-stationary phase leading to steady state. On the contrary, the natural capital stock is declining almost monotonically, involving increasing natural capital operating costs. This results in a structural change by which the human factors share devoted to exploitation increases continuously at the expense of that devoted to final production. Taking pollution into account results in a peak of GDP less pronounced and advanced over time compared to the pollution-free situation. |
| Keywords: | Limits to growth,Strong sustainability,Structural change |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03129992&r= |