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The neoclassical growth model accords with empirical evidence on convergence if capital is viewed broadly to include … convergence than those observed empirically, however. We show that the open economy model conforms with the evidence if an economy …
Persistent link: https://www.econbiz.de/10005666787
After arguing that the concepts of b-convergence and s-convergence are independently interesting, this paper extends … the empirical evidence on regional growth and convergence across the United States, Japan, and five European nations. We … confirm that the estimated speeds of convergence are surprisingly similar across data sets: regions tend to converge at a …
Persistent link: https://www.econbiz.de/10005114384
This paper reviews the cross-country record of economic growth, using as organizing framework how economic theory has guided that empirical analysis. The paper argues that recent studies of economic growth - both empirical and theoretical - distinguish from previous work in three distinct ways:...
Persistent link: https://www.econbiz.de/10005792232
The concepts of s-convergence, absolute b-convergence and conditional b-convergence are discussed in this paper. The …. Except for the large cross section of countries, all data sets display strong evidence of s-convergence and absolute b-convergence …. The cross section of countries exhibits s-divergence and conditional b-convergence. The speed of conditional convergence …
Persistent link: https://www.econbiz.de/10005656407
We study the formation of human capital and its transmission across generations when a society is assailed by an epidemic disease such as AIDS. We establish that the disease can severely retard economic growth, even to the point of leading to an economic collapse. We also show that the epidemic...
Persistent link: https://www.econbiz.de/10005656313
We consider the role of capital mobility and international taxation in explaining the observed diversity in long-term income growth rates. Under perfect capital mobility, international differences in taxes will not matter for total growth differentials. Policy differences have a role to play in...
Persistent link: https://www.econbiz.de/10005067595
population growth rates. Corroborative evidence is found for the theoretical results on the convergence/divergence in long …
Persistent link: https://www.econbiz.de/10005656281
Immigration as a source of population growth is traditionally represented by neoclassical growth models with negative output and growth effects in per capita terms for the host economy. The reasoning behind this is the assumption of decreasing returns to labour in the production function. This...
Persistent link: https://www.econbiz.de/10005661985
This paper considers the effects of fiscal and financial policy on economic growth in open and closed economies, when human capital formation by young households is constrained by the illiquidity of human wealth. Both endogenous and exogenous growth versions of the basic OLG model are analysed....
Persistent link: https://www.econbiz.de/10005497940
The ‘new’ economic geography focuses on the footloose-labour and the vertically-linked industries models. Both are complex, since they feature demand-linked and cost-linked agglomeration forces. The paper presents a simpler model, where agglomeration stems from demand-linked forces arising...
Persistent link: https://www.econbiz.de/10005136511