In a simultaneous equations with error components framework, we analyze the institutions-growth relationship. We … the direct and indirect effects of institutions on growth. We find that the effects of political freedom on total factor … force growth. Economic freedom, on the other hand, has positive and significant effects on total factor productivity …

This paper formulates a model of dynamic, endogenous reform of political institutions. Specifically, a class of dynamic … future political institutions are decided under current ones. The process is instrumental because institutional choices do …

Recent economic growth theory has suggested that wealth differences across nations must be due, at least in part, to …

This paper presents a simple Cass-Koopmans-Ramsey AK growth model with heterogeneity that explains how policies that … increase income inequality may temporarily boost a country's income growth rate. Briefly put, a change in policy that reduces … redistributive transfers will free up resources to the households with the highest productivities, resulting in an aggregate growth …

is addressed. Using provincial panel data on industrial growth, capital and employment, the impact of inequality on … industrial growth is estimated as affecting technical efficiency and level of technology. The results show a significant positive … effect of intra-provincial disparities on provincial industrial growth, with causality from inequality to growth. Moreover …

This paper provides an empirical evaluation of the impact of infrastructure development on economic growth and income … involves the estimation of simple equations for GDP growth and conventional inequality measures, augmented to include among the …. The two robust results are: (i) growth is positively affected by the stock of infrastructure assets, and (b) income …