nep-gro New Economics Papers
on Economic Growth
Issue of 2025–12–08
four papers chosen by
Marc Klemp, University of Copenhagen


  1. Family Institutions and the Global Fertility Transition By Paula Eugenia Gobbi; Anne Hannusch; Pauline Rossi
  2. The Republican Spirit of Innovism and Long-Run Growth By Danyang Xie; Heng-Fu Zou
  3. Many names, many gains? How local diversity in Germany affects innovation By Kremer, Anna
  4. REDEFINING PROGRESS: BALANCE BETWEEN ECONOMIC BUOYANCY AND ENVIRONMENTAL CONSERVATION By Taje, Motsumi Stephen

  1. By: Paula Eugenia Gobbi; Anne Hannusch; Pauline Rossi
    Abstract: Much of the observed cross-country variation in fertility aligns with the predictions of classic theories of the fertility transition: countries with higher levels of human capital, higher GDP per capita, or lower mortality rates tend to exhibit lower fertility. However, when examining changes within countries over the past 60 years, larger fertility declines are only weakly associated with greater improvements in human capital, per capita GDP, or survival rates. To understand why, we focus on the role of family institutions, particularly marriage and inheritance customs. We argue that, together with the diffusion of cultural norms, they help explain variations in the timing, speed and magnitude of the fertility decline. We propose a stylized model integrating economic, health, institutional and cultural factors to study how these factors interact to shape fertility transition paths. We find that family institutions can mediate the effect of economic development by constraining fertility responses.
    Keywords: Fertility transition, culture, Family institutions
    JEL: J13
    Date: 2025–11–28
    URL: https://d.repec.org/n?u=RePEc:eca:wpaper:2013/397122
  2. By: Danyang Xie (Society Hub, HKUST (Guangzhou)); Heng-Fu Zou (The World Bank, Washington, D. C. 20433, USA; Institute for Advanced Study, Wuhan University, Wuhan, 430072, China; China Economics and Management Academy, Central University of Finance and Economics, Beijing, 100081, China)
    Abstract: This paper embeds the republican spirit of innovism-dignity for ordinary people, liberty of entry and speech, and fair reward-into a modern ideas-based growth model to explain the Great Enrichment. Innovism is treated as a produced, nonrival social technology that multiplies production and raises the effectiveness of research, reconciling economic history with a semi-endogenous Jones framework. Small, persistent gains in civic permission and legal predictability sustain the frontier’s one-to-two percent per-capita growth as demographics slow, while backsliding lowers the slope. The model yields transparent balanced-growth conditions, ties adjudication and entry reforms to capital deepening, and shows how open science enhances research productivity.
    Date: 2025–11–24
    URL: https://d.repec.org/n?u=RePEc:cuf:wpaper:803
  3. By: Kremer, Anna
    Abstract: Meeting others with different backgrounds brings up new ideas. This paper shows that this not only matters for a background in heterogeneous industries or nationalities, but that regional differences matter too. Regions within a country vary in their traditions and culture. Cultural homogeneity within regions becomes mixed due to internal migration, which, like international migration, increases the diversity of a place. In a novel approach, I look at diversity in German municipalities, measured by different family names, and investigate its effect on the number of generated patents. I use a unique dataset from a 1996 phonebook and casualty lists from WWI. There is a positive association between innovation and diversity when defined by the share of new names, a deconcentration measure, or a Shannon index. Causality is established by using instrumental variables estimations with historical borders. I show that intra-country diversity affects patenting positively and conclude that regional differences matter for economic outcomes.
    Keywords: cultural diversity, innovation, family names, patents, local level, Germany
    JEL: R11 O30 Z13
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:tudcep:333401
  4. By: Taje, Motsumi Stephen
    Abstract: This research examines the intricate and often contentious relationship between economic growth and environmental sustainability, challenging conventional paradigms that prioritize economic expansion at the expense of ecological preservation. The study critically assesses the assumptions underpinning growth-centric development models, with particular attention to the Environmental Kuznets Curve (EKC), which posits that environmental degradation increases in the early stages of economic growth before improving as a society becomes wealthier. Through a detailed critique of the EKC and the impacts of capitalist economic structures, this paper highlights the flaws of these models, particularly their failure to account for irreversible environmental damage and the insufficient role of policy interventions in mitigating ecological harm. Furthermore, the research explores how international competition and the capitalist drive for profit exacerbate environmental degradation, pushing nations to weaken environmental regulations in pursuit of economic advantage. The paper advocates for a shift towards sustainable economic models that integrate both economic growth and environmental conservation, stressing the need for robust regulatory frameworks and international cooperation. The findings underscore that, while economic and environmental objectives have historically been seen as mutually exclusive, a balanced approach is not only feasible but essential for achieving long-term prosperity and ecological stability
    Date: 2025–11–26
    URL: https://d.repec.org/n?u=RePEc:osf:socarx:ctmxs_v1

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