This paper examines the relationship between inequality and growth in the Italian regions in the period 1990-2004. Our … personal incomes reduces real growth. Furthermore, a detailed examination of the possible influence mechanisms of inequality on … growth shows that both the credit rationing and the social instability channel are relevant in explaining the empirical …

Periods of economic boom with rapid credit and GDP growth can be followed by sudden busts. In the presence of financial … markets imperfections, a simple modification of a neoclassical growth model can fully account for this behavior. I study a … growth model for a small open economy where decreasing marginal returns to capital appear after the country has reached a …

-country growth regressions. When the time series are persistent, the first-differenced GMM estimator can be poorly behaved, since …-differenced GMM in our estimation of an empirical growth model. …

; Distance to Frontier ; Inappropriate Technologies ; Skill-biased Technical Change ; Productivity ; TFP differences …

productivity. This framework is based on a multi-sector equilibrium model with sector-specific frictions in the form of taxes on …, this framework is consistent with that commonly used in productivity analysis. I apply this framework to measure the extent … to which resource misallocation explains the difference in aggregate productivity across developed countries. I find that …

. Expanding a low-productivity sector might not be unambiguously good for growth. Moreover, there are issues of reverse causation … for correlations between agricultural productivity increases and economic growth but little definitive evidence for a … productivity improvements lead to economic growth in developing countries. For countries with large interior populations and …

variability in income levels and their growth rates. We review estimates for a wide range of policy variables. In many cases, the … magnitude of the estimates is under debate. Estimates found by running cross-sectional growth regressions are sensitive to which …

A two-sector real business cycle model, estimated with postwar U.S. data, identifies shocks to the levels and growth … rates of total factor productivity in distinct consumption- and investment-goods-producing technologies. This model … attributes most of the productivity slowdown of the 1970s to the consumption-goods sector; it suggests that a slowdown in the …

How big a boost to long run growth can countries expect from the ICT revolution? I use the results of growth accounting … and the insights from a two-sector growth model to answer this question. A two-sector rather than a one-sector model is … the future. According to the two-sector model, the main boost to growth comes from ICT use, not ICT production. Even a …

productivity (TFP). In this article, we summarize a recent literature — and the articles in this special issue on misallocation … and productivity — that focus on the reallocation of factors across heterogenous production units as an important source …