This paper estimates, using data from the United States and Euro Area, a two-country stochastic growth model in which …

capacities. We study a non stochastic CRS endogenous growth model where public expenditure is an input in the production process … effective tax rate. We show how persistent differences in growth rates across countries could stem from differential public … welfare and the growth rate. With outstanding public debt, the optimal fiscal policy should keep the debt-to-GDP ratio …

-quality production therefore limit the positive impact that trade liberalization can have on income or growth. Institutional reform that …, possibly, growth. In contrast, institutional reform that reduces the costs of entry into low-quality production (e.g., reforms …

finance higher investment and growth; (ii) insure against aggregate shocks and reduce consumption volatility; and (iii … capital flows, investment, and growth; (ii) large capital inflows and higher investment and growth; or (iii) volatile capital …

convergence within and across countries. Regional growth is shaped by similar factors as national growth, such as geography and … neoclassical growth model suggests that significant barriers to factor mobility within countries are needed to account for the …

Schumpeterian growth theory has "operationalized" Schumpeter''s notion of creative destruction by developing models … based on this concept. These models shed light on several aspects of the growth process which could not be properly … market structure; (ii) firm dynamics; (iii) the relationship between growth and development with the notion of appropriate …