Showing 1 - 10 of 680
Two issues related to mapping a multi-sector model into a reduced-form value-added model are often neglected: the composition of intermediate goods, and the distinction between the productivity indices for value added and for gross output. We illustrate their significance for growth accounting...
Persistent link: https://www.econbiz.de/10005025514
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
Extensive growth based on the expansion of inputs is likely to be subject to diminishing returns. Therefore it is often viewed as having no effect on per capita magnitudes in the long run. This Paper argues that periods of extensive growth through capital accumulation may be a precursor to...
Persistent link: https://www.econbiz.de/10005791342
If capital is an essential input, the neoclassical growth model has a steady state with zero capital. From this, one is inclined to conclude that an economy starting without capital can never grow. We challenge this view and claim that, if the production function satisfies the Inada conditions,...
Persistent link: https://www.econbiz.de/10005792095
In this paper we consider a Ramsey one-sector model with non-separable homothetic preferences, endogenous labour and productive external effects arising from average capital and labour. We show that indeterminacy cannot arise when there are only capital externalities but that it does when there...
Persistent link: https://www.econbiz.de/10005124153
In this paper, we consider an aggregate overlapping generations model with endogenous labour, consumption in both periods of life, homothetic preferences and productive external effects coming from the average capital and labour. We show that under realistic calibrations of the parameters, in...
Persistent link: https://www.econbiz.de/10005136695
Kelly (1992) has recently shown that evidence on convergence cannot be taken as evidence against endogenous growth in general. This study uses a well-known class of stochastic growth models to show other difficulties with traditional empirical studies of convergence. Key parameters typically...
Persistent link: https://www.econbiz.de/10005661421
Using a human-capital-based growth model, we show the essential role of labour mobility and cross-country tax harmonization in equalizing income levels of countries that start off from different initial income positions. Knowledge spillovers cum labour mobility are the driving forces behind the...
Persistent link: https://www.econbiz.de/10005666441
This paper studies the synchronization of output fluctuations in European regions and US counties. We extend the two component dynamic factor model à la Sargent and Sims (1977) by introducing an intermediate-level shock, which is common to all regions (counties) in each country (state), but it...
Persistent link: https://www.econbiz.de/10005667128
This paper presents ideas and methods underlying the construction of an indicator that tracks euro area GDP growth but, unlike GDP growth, (i) is updated monthly and almost in real time, and (ii) is free from short-run dynamics. Removal of short-run dynamics from a time series to isolate the...
Persistent link: https://www.econbiz.de/10005123499