Capital (physical and human) doesn't flow from rich to poor countries. We show that in order to solve these twin paradoxes, assumption of externality of physical capital is better than assumption of externality of human capital.

We study the impact of demographic change on economic short and long-term dynamics in an enlarged Lucas-Uzawa model with intratemporal altruism. Demographics are summarized by population growth rate and initial size. In contrast to the existing literature, the long-run level effects of...

This paper examines the relationship between environmental policy and growth when green preferences are endogenously determined by education and pollution. The government can implement a tax on pollution and recycle the revenue in public pollution abatement and/or education subsidy (influencing...

This paper examines the interplay between public education expenditure and economic growth in a two-sector model. We reveal that agents' preferences for services, education and savings play a major role in the relationship between growth and public education expenditures, as long as production...

Should a country invest more in human or physical capital? The present paper addresses this issue, considering the impact of different factor intensities between sectors on both optimal human and physical capital accumulation. Using a two-sector overlapping generations setting with endogenous...

This paper aims at clarifying the conditions under which financial globalization originates welfare gains in a simple endogenous growth setting. We focus on the capital-deepening effect of financial globalization in an open-economy AK model and we show that constrained borrowing triggers...

Empirical evidence on the growth benefits of capital inflows is mixed. The growth benefits accruing from capital inflows also appear to be larger for high savings countries. We explain this phenomenon using an OLG model of endogenous growth in open economies with borrowing constraints that can...

L'objectif de ce papier est d'analyser les impacts du vieillissement de la population italienne sur le système économique et en particulier sur le système de retraite afin d'évaluer l'efficacité des réformes mises en place durant les années 90 (réforme Amato en 1992 et réforme Dini en...

Most European countries have recently introduced pension system reforms to face the financial problem related to population ageing. Italy is not an exception. The reforms introduced during the Nineties (Amato Reform in 1992 and Dini Reform in 1995), even if they will produce a strong reduction...

We consider an optimal growth model of an economy facing an exogenous pollution quota. In the absence of an international market of pollution permits, the economy has three instruments to reach sustainable growth: R&D to develop cleaner technologies, investment in new clean capital goods, and...