nep-gro New Economics Papers
on Economic Growth
Issue of 2026–02–02
five papers chosen by
Marc Klemp, University of Copenhagen


  1. Inflation, the Skill Premium and the labor share: An empirical and theoretical analysis By Tiago Neves Sequeira; Pedro Lima; Joshua Duarte
  2. Real Wages and Economic Growth in Peru, 1900-1940 By Hunt, Shane
  3. Trade Openness and Economic Growth in Southeast Asia By Record, Francis
  4. Do past wealth gaps explain modern inequality? Evidence from immigration to the United States By Brian Marein
  5. Land, G versus R, and Infinite Debt Rollover By Tomohiro Hirano; Alexis Akira Toda

  1. By: Tiago Neves Sequeira (University of Coimbra, CeBER and Faculty of Economics); Pedro Lima (University of Coimbra, CeBER and Faculty of Economics); Joshua Duarte (University of Coimbra, CeBER and Faculty of Economics)
    Abstract: We develop an overlapping generations endogenous growth model with cash-in-advance constraints for (i) consumers and (ii) R&D firms which is consistent with an effect of inflation on the skill-premium labor share. Inflation decreases the skill premium in both cases and decreases the labor share through (i) which it increases through (ii). The newly described effect of inflation on the labor share is consistent with empirical evidence for a short-run effect.
    Keywords: inflation, labor share, human capital
    JEL: E24 J64 L11 O33
    Date: 2025–12
    URL: https://d.repec.org/n?u=RePEc:gmf:papers:2025-04
  2. By: Hunt, Shane
    Keywords: Financial Economics, Labor and Human Capital
    URL: https://d.repec.org/n?u=RePEc:ags:cladsp:262895
  3. By: Record, Francis
    Abstract: This paper investigates the extent to which the integration of Southeast Asian countries into the global economy has contributed to their economic growth. It uses regression analysis to model the relationship between trade openness and economic growth, identifying policy lessons on the key drivers of convergence for the next set of developing countries that seek to achieve rapid rates of economic growth in the context of a more challenging globalization context.
    Keywords: Southeast Asia, trade, globalization, economic growth
    JEL: F43 F63
    Date: 2025–11–29
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:127051
  4. By: Brian Marein (Wake Forest University Department of Economics)
    Abstract: Recent studies document persistent racial wealth inequality in the United States, often attributing modern disparities to historical differences. But inferring the determinants of long-run racial wealth inequality with aggregated data is complicated by the fact that 30 million European immigrants arrived in the late 19th and early 20th centuries with no direct claim to the wealth accumulated by earlier generations of Americans. Drawing on government data, I find that immigrants arrived with few assets, far behind the native-born population. Yet survey evidence reveals that by the late 20th century, their descendants achieved wealth parity with earlier arriving white ethnic groups. Using a stylized model, I show that this rapid convergence can be explained mostly by immigrants' income growth and plausibly higher savings rates. These findings indicate that initial differences in wealth matter less for long-run outcomes than previously suggested. The results also underscore the central role of race in shaping inequality, consistent with faster economic convergence within than across racial groups.
    Keywords: wealth inequality; intergenerational wealth transmission; immigration
    JEL: D31 J15 N11 N12
    Date: 2026–01–22
    URL: https://d.repec.org/n?u=RePEc:ris:wfuewp:022126
  5. By: Tomohiro Hirano; Alexis Akira Toda
    Abstract: Since McCallum (1987), it has been well known that in an overlapping generations (OLG) economy with land, the equilibrium is Pareto efficient because with balanced growth, the interest rate exceeds the growth rate (R > G), precluding infinite debt rollover (a Ponzi scheme). We show that, once we remove knife-edge restrictions on the production function and allow unbalanced growth, under some conditions an efficient equilibrium with land bubbles necessarily emerges and infinite debt rollover becomes possible, a markedly different insight from the conventional view derived from the Diamond (1965) landless economy. We also examine the possibility of Pareto inefficient equilibria.
    Date: 2026–01
    URL: https://d.repec.org/n?u=RePEc:cnn:wpaper:26-002e

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