|
on Economic Growth |
| By: | Constantin Chilarescu |
| Abstract: | The main aim of this paper is to study the steady-state properties of a general Bond-type endogenous growth model, considering that both sectors are modeled by two distinct $CES$ production functions. We prove here that in this case, we cannot claim the saddle-path stability. |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2604.08677 |
| By: | Akiomi Kitagawa |
| Abstract: | This paper investigates the macroeconomic effects of tuition sub-sidies in an overlapping-generations model with endogenous growth and innovation. Calibrated to the Japanese economy, the model ex-plores the “growth puzzle” where expanded educational attainment often yields modest aggregate productivity gains. We identify a “para-dox of innovation productivity”: while subsidies can achieve a Pareto improvement in low-innovation environments, highly productive inno-vation may cause technological progress to outpace capital accumula-tion. This dynamic destabilizes the tax base by eroding the capital-effective labor ratio, rendering aggressive subsidies fiscally infeasible in equilibrium. Our findings suggest that the feasibility of free college policies depends critically on the economy’s innovation productivity and its resulting impact on the dynamic interaction between techno-logical progress and the fiscal foundation. |
| Date: | 2026–03–30 |
| URL: | https://d.repec.org/n?u=RePEc:toh:tupdaa:82 |
| By: | Ruben Gaetani; Gustavo de Souza; Martí Mestieri Ferrer |
| Abstract: | Long-run economic growth depends on the international diffusion of frontier technologies. Using Brazilian data, we identify a channel through which tariff cuts slow this diffusion: they weaken foreign firms' incentives to transfer technology to domestic producers. Exploiting variation in import tariffs across origin countries within narrowly defined industries, we find that tariff reductions lead to fewer technology transfers and fewer citations to foreign technology, with the largest declines occurring among firms located near previous technology recipients. To interpret these findings, we develop a growth model in which foreign firms choose between exporting goods and transferring technology, with learning from exports being less efficient than learning from transferred technologies, as informed by the empirical evidence. Trade liberalization shifts learning from transferred technologies to imported goods, raising welfare in the short run but slowing diffusion and productivity growth. An optimal subsidy to technology transfers substantially amplifies the welfare gains from trade liberalization. |
| Keywords: | growth, international trade, technology diffusion, technology transfer |
| JEL: | O33 O40 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1572 |
| By: | Vuorinen, Katariina E. M. |
| Abstract: | It has been proposed that stagnating and contracting economies experience macroeconomic instability due to so-called "economic growth dependencies". Yet, this concept has remained macroeconomically ambiguous, leaving unclear whether and under what conditions such dependencies may rise, leading to numerous, heterogeneous, and sometimes contradictory proposals for purported economic growth dependency mechanisms. This paper applies a post-Keynesian lens on the question of economic growth dependencies and presents a conceptual synthesis, demonstrating that the diversity, heterogeneity and inconsistencies of economic growth dependencies suggested by literature are only apparent. Stock-flow consistent approach shows that economic growth dependency, sensu stricto, comes down to one clearly definable macroeconomic mechanism: asymmetric monetary circulation where certain agents or sectors experience persistent structural liquidity shortfalls creating pressures for continued expansion of aggregate economic activity. This dynamic, however, results in structurally enforced growth only if the liquidity shortfalls cannot be resolved through redistribution or expansion of monetary supply in a competitive market environment. By using this synthesis, the paper refines conceptual boundaries of economic growth dependency and defines the necessary and sufficient conditions under which such dependency arises, clarifying the terminological debate and laying the foundation for a macroeconomically consistent theory of economic growth dependency. The paper will also demonstrate that different economic traditions (post-Keynesian, neoclassical, and ecological economics) hold differing views on economic growth dependencies due to differing model structures. |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:penwps:340038 |
| By: | Vygintas Gontis; Lesya Kolinets |
| Abstract: | The long-run convergence of developing economies toward advanced countries exhibits robust empirical regularities, yet the mechanisms underlying technological diffusion remain insufficiently specified in standard growth models. In this paper, we extend the neoclassical framework by introducing a micro-founded mechanism of technological transfer as a driver of total factor productivity. Rather than treating technological progress as exogenous or purely innovation-driven, we model productivity growth as a process of adopting existing technologies from the global frontier. The diffusion process is described using a herding-type interaction mechanism, in which agents transition from non-adopters to adopters under the combined influence of individual incentives and peer effects. This approach yields a tractable aggregate representation of TFP dynamics characterized by nonlinear convergence toward a moving technological frontier. We derive an explicit analytical solution and provide an interpretation of model parameters in terms of initial productivity, convergence limits, and diffusion speed. The model is evaluated using OECD productivity data for Central and Eastern European economies. |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2604.11413 |
| By: | Marcello D’Amato (University of Naples Federico II and CSEF, University Suor Orsola Benincasa); Francesco Flaviano Russo (University of Naples Federico II and CSEF) |
| Abstract: | We explore whether and how the similarity of pre-existing cultural traits between ethnic groups in the former colonies and colonizers contributes to explain the legacies of colonization. We find higher levels of income per capita, and a lower probability of a “Reversal of Fortunes”, in the territories where the local population had more similar oral traditions to the colonizers and where the dispersion of this folklore similarity was smaller. Exploring the mechanisms, we find that more oral tradition similarity, and less dispersion, are associated with more similar (de iure) constitutions established at independence, a higher frequency of a direct colonial rule, more conversions to Christianity and better education. |
| Keywords: | Colonial Relationship; Culture; Orality; Folklore Narratives; Historical Development |
| JEL: | J15 Z10 |
| Date: | 2026–03–25 |
| URL: | https://d.repec.org/n?u=RePEc:sef:csefwp:774 |
| By: | B. Ravikumar; Guillaume Vandenbroucke |
| Abstract: | While the global population more than doubled from 1960 to 2020, the growth was unevenly distributed. Two regions accounted for most of that population change. |
| Keywords: | world population; regional population growth; population trends |
| Date: | 2026–04–06 |
| URL: | https://d.repec.org/n?u=RePEc:fip:l00001:103015 |
| By: | Centorrino, S.; Massetti, E.; Mohaddes, K.; Raissi, M.; Yang, J-C. |
| Abstract: | This paper studies how increasing temperatures have affected the economies of 195 countries between 1960 and 2022, focusing on income losses caused by gradual shifts to new climate conditions. We contribute to the expanding literature on climate-macroeconomic linkages by developing a dynamic heterogeneous panel model that distinguishes between the long-term and short-term effects, accounts for adaptation through rolling climate norms, and addresses key econometric challenges including non-stationarity, cross-country heterogeneity, and unobserved global factors. Our findings reveal that a sustained 0.01°C annual increase in temperatures above historical climate norms reduces global GDP per capita growth by 0.05 percentage points per year, with income losses accumulating as long as temperatures keep increasing. This effect is 70% larger than what would be estimated under a homogeneous panel specification. Contrary to much of the existing literature, no country appears immune to the impacts of rising temperatures: middle- and high-income nations, as well as those in temperate or cold, and hot climate zones, all exhibit persistent (though not permanent) growth slowdowns, with income losses linked to how quickly they adapt. |
| Keywords: | Climate Change, Growth, Adaptation, Dynamic Heterogeneous Panels, Cross-Section Dependence |
| JEL: | C23 O40 O44 Q54 |
| Date: | 2026–03–12 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2617 |