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 …

The relationship between income distribution and economic growth has been found to depend on several factors such as … trade and openness. The current work assesses how income inequality influences growth stimating a reduced form growth … household income from national surveys, it is found that inequality and growth are positively related. When analysing different …

welfare gain from eliminating business cycles can exceed the gain from increasing the long-term growth rate by 1% forever. Our …

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 …

In this paper we try to estimate the impact of Structural Funds on the growth rates of Objective 1 European regions … during the two first Programming periods (1989-2000). For that purpose, we develop a ''hybrid'' model of economic growth that … results suggest that Structural Funds have positively influenced the growth process of Objective 1 regions although their …

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 presents an accumulation-driven growth model where investment depends on public policy which in turn depends … on economically important fundamentals. It is argued that conditioning on factor accumulation in growth regressions that … also include policy variables may be problematic. When policy is endogenous the measured effects of policy on growth will …

We present a discrete-time version of an otherwise standard Schumpeterian growth model. Discrete time exhibits two … level, but there is faster growth. Numerical simulations suggest that this also leads to higher welfare. …

peak the average country’s relative per capita output was 68% of its peak level. A growth accounting exercise shows that … between 1960 and 1985 the contribution of physical capital to growth, at 74%, was more than twice the world’s average. There … growth one of the lowest. Import Substitution Industrialization and targeted investment subsidies may be the key to …

This article analyzes the effects of financial liberalization on economic growth, focusing mainly the empirical aspects … has capital account liberalization had on economic growth? Has liberalization affected equally both developed and … developing countries? What sort of private capital flow has had the greatest impact on growth? To answer these questions, the …