How important is financial development for economic development? A costly state verification model of financial intermediation is presented to address this question. The model is calibrated to match facts about the U.S. economy, such as intermediation spreads and the firm-size distribution for...

To address how technological progress in financial intermediation affects the economy, a costly-state verification framework is embedded into the standard growth model. The framework has two novel ingredients. First, firms differ in the risk/return combinations that they offer. Second, the...

What determines the technology that a country adopts? While many factors affect technological adoption, the efficiency of the country's financial system may also play a significant role. To address this question, a dynamic contract model is embedded into a general equilibrium setting with...

This study provides evidence of the contribution of entrepreneurship to economic development in Appalachia. Using data on Appalachian counties, a system of simultaneous equations is empirically estimated to measure the effects of entrepreneurship on economic growth and development. We present an...

The geography of business incubators has seldom been examined against the public aspirations and beliefs that incubators should either inhabit economically distressed areas to alleviate unemployment and poverty (in the case of empowerment business incubators) or proliferate in technologically...

A number of procedures for generating interregional commodity by industry accounts have been developed recently (Canning and Zhi, 2005; Robinson and Liu, 2006; Jackson et al, 2006; Lindall, Olsen and Alward 2006). While each approach shares a common organizational framework, very little attention has been...

Generating employment and alleviating poverty are the biggest challenges for regional economic growth in rural areas of the Northeastern United States. Despite the revival of the economy in much of the nation’s heartland, rural areas are still suffering from high poverty and unemployment...

Recycling and remanufacturing activities are gaining in importance, as a growing population and economy use up and wear out modern products, exhaust landfill capacity, threaten the environment, and discard potentially valuable and increasingly scarce resources. As an example, an estimated five...

The conventional input-output model has been widely criticized, both justly and unjustly, for its limiting assumptions. One of these assumptions is homogeneity of degree one. This paper explores some approaches to minimize this limitation of traditional input-output analysis by removing the...