paper argues instead that fluctuations can affect welfare by affecting the growth rate of consumption. I present an argument … for why fluctuations can reduce growth starting from a given initial consumption, which could imply substantial welfare …In his famous monograph, Lucas (1987) put forth an argument that the welfare gains from reducing the volatility of …

achieves the first-best rate of growth, but not the first-best level of welfare. Small tariffs and export subsidies also affect … both growth and welfare. Growth may increase or decrease, depending upon which sector is promoted by the trade policy. But … an increase in the growth rate is neither necessary nor sufficient for a trade policy to improve welfare. Finally, we …

research effort; this is the essence of semi-endogenous growth theory. This paper interprets past and future growth from a semi … implication is that the long-run rate of economic growth is the product of the degree of increasing returns and the growth rate of …-endogenous perspective. For 50+ years, U.S. growth has substantially exceeded its long-run rate because of rising educational attainment …

human capital produces individual economic (income) growth, so do the corresponding social or national aggregates. At the … contribution to growth is greater the larger the volume of physical capital and vice versa. The framework of an aggregate … production function shows also that the growth of human capital is both a condition and a consequence of economic growth. Human …

In this paper we study the implications of general-purpose technological growth for asset prices. The model features … leads to cycles in asset valuations and risk premia as firms convert the growth options associated with the new technologies …

This paper explores the impact of trade on growth when firms are heterogeneous. We find that greater openness produces … anti-and pro-growth effects. The Melitz-model selection effects raises the expected cost of introducing a new variety and … this tends to slow the rate of new-variety introduction and hence growth. The pro-growth effect stems from the impact that …

operation of the financial system and economic growth. While subject to ample qualifications and countervailing views, the … preponderance of evidence suggests that both financial intermediaries and markets matter for growth and that reverse causality alone … is not driving this relationship. Furthermore, theory and evidence imply that better developed financial systems ease …

We address the question of whether growth and welfare can be higher in crisis prone economies. First, we show that … there is a robust empirical link between per-capita GDP growth and negative skewness of credit growth across countries with … countries with smooth credit conditions. We then present a two-sector endogenous growth model in which financial crises can …

A satisfactory account of the postwar growth experience of the United States should be able to come to terms with the …

phenomena - the industrialization and growth take-off of rich northern' nations, massive global income divergence, and rapid … trade expansion. Specifically, we present a stages-of-growth model in which the four phenomena are jointly endogenous and … are high, industry is dispersed and growth is low. In the second stage, the north industrializes rapidly, growth takes off …