This paper analyzes the link between long-run economic growth and policy that depends on important economic fundamentals. In simple growth regressions the measured policy effects would then generally be biased. Using a widely quoted theoretical model, the signs of the biases are derived. It is...

This book contributes fresh theoretical and empirical evidence on competitiveness and growth in connection with the commitment made by European leaders at the Lisbon Summit in 2000 to ‘render the European Union the most competitive and dynamic knowledge based economy in the world by 2010,...

This paper analyzes the interplay of economic growth, (re-)distribution and policies when the latter are set exogenously or when they depend on economically important fundamentals. A redistribution policy generally causes lower growth, but less so when economic efficiency is higher. The model...