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on Economic Growth |
| By: | Marion Davin (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Mouez Fodha (UP1 - Université Paris 1 Panthéon-Sorbonne, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thomas Seegmuller (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique, AMU - Aix Marseille Université) |
| Abstract: | This paper examines an endogenous growth model that allows us to consider the dynamics and sustainability of debt, pollution, and growth. Debt evolves according to the financing adaptation and mitigation efforts and to the damages caused by pollution. Three types of features are important for our analysis: the technology through the negative effect of pollution on TFP; the fiscal policy; the initial level of pollution and debt with respect to capital. Indeed, if the initial level of pollution is too high, the economy is relegated to an endogenous tipping zone where pollution perpetually increases relatively to capital. If the effect of pollution on TFP is too strong, the economy cannot converge to a stable and sustainable long-run balanced growth path. If the income tax rates are high enough, we can converge to a stable balanced growth path with low pollution and high debt relative to capital. This sustainable equilibrium can even be characterized by higher growth and welfare. This last result underlines the role that tax policy can play in reconciling debt and environmental sustainability. |
| Keywords: | Environmental damage, pollution, fiscal policy, public debt, sustainability |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:pseptp:hal-04990924 |
| By: | Yelwa, Mohammed; Anyanwu, Sarah O. |
| Abstract: | Nigeria's economic growth and productivity depend on the development of human capital.However, Nigeria's human capitaldevelopmentis still low, particularly among low-income rural families who lack the means to investin their children's future. The lack of resource endowment in most households and cultural prejudices against girls are two main factors contributing to inadequate human capital development in Nigeria. Decisions about investing in human capital are also influenced by family size and per capita income. Therefore, nderstanding how family human capital investment decisions affect children's development is crucial for combating poverty and promoting sustainable development in Nigeria. |
| Date: | 2024–03–30 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:42553040-6d60-47e2-a4cc-b826b8f3a3d6 |
| By: | Michalis Nikiforos |
| Abstract: | This chapter discusses the “utilization controversy, ” the debate on whether or not demand plays a role in the determination of the rate of utilization in the long run. First, it explains why utilization has a central role in the various theories of growth and distribution. Second, it examines the theory of utilization and explains how the standard model does not recognize a role of demand and outlines recent theoretical advancements that justify an endogenous-to-demand long-run rate of utilization. Finally, it examines different estimates of utilization. It argues that the Federal Reserve measure of utilization, commonly employed in the debate, is inappropriate to capture long-run variations in utilization. Other measures such as the Average Workweek of Capital or the National Emergency Utilization Rate are better suited. These estimates provide empirical support for a utilization rate which is endogenous to demand in the long run. |
| Keywords: | Accumulation; Growth; Distribution; Utilization |
| JEL: | B22 D20 D30 O40 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2508 |
| By: | Pablo Garcia Sanchez (Banque centrale du Luxembourg, Departement Economie et Recherche); Olivier Pierrard (Banque centrale du Luxembourg, epartement Economie et Recherche) |
| Abstract: | While a sustained contraction of global production could lower total carbon emissions, it would hamper economic development in poorer countries, reduce living standards for low-income households in advanced economies, and heighten the risk of social unrest. Therefore, reducing carbon intensity - emissions per unit of output - appears to be the most viable and sustainable path forward. We make two contributions: one empirical and one theoretical We make two contributions: one empirical and one theoretical. Empirically, we show that the transport equation, a basic partial differential equation from physics, captures well the evolution of the distribution of carbon intensities across major economies since 1995. Theoretically, we show that in an extended Solow model with abatement capital, the distribution of carbon intensity across a continuum of economies follows the dynamics described by the transport equation. Moreover, this theory-backed version remains empirically plausible under standard parameter values. In addition, unlike its empirical counterpart, it enables projections of emissions and temperature increases under various policy scenarios, aligning closely with forecasts by leading institutions. |
| Keywords: | Carbon intensity; Transport equation; Solow model |
| JEL: | O44 Q50 |
| Date: | 2025–03–24 |
| URL: | https://d.repec.org/n?u=RePEc:ctl:louvir:2025006 |
| By: | Julius Koschnick (University of Southern Denmark) |
| Abstract: | While economic factors in directed technical and scientific change have been widely studied, the role of teacher-directed scientific change has received little attention. This paper studies teacher-directed scientific change for one of the largest changes in the direction of research, the Scientific Revolution. Specifically, the paper considers the case of the English Scientific Revolution at the universities of Oxford and Cambridge during 1600-1720. It argues that exposure to different teachers shaped students' direction of research and can partly account for the successful trajectory of English science. For this, the paper introduces a novel dataset on the universe of 111, 242 students at the universities of Oxford and Cambridge and their publications. Using natural language processing, the paper derives a measure of researchers' direction of research. To derive causal estimates of teacher-student effects, the paper uses an instrumental variable design that predicts students’ choice of college based on their home regions, a stacked differences-in-differences approach based on teachers leaving their college, and a natural experiment based on the expulsion of teachers following the English Civil War. The results illustrate how teacher-directed change can contribute to paradigm change. |
| Keywords: | Directed Technical Change, Knowledge Diffusion, Innovation, Human Capital, Natural Language Processing |
| JEL: | N33 I23 O33 O31 O43 O14 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:hes:wpaper:0274 |