We explore the impact of large banks and of financial openness for aggregate growth. Large banks matter because of … granular effects: if markets are very concentrated in terms of the size distribution of banks, idiosyncratic shocks at the bank …-level do not cancel out in the aggregate but can affect macroeconomic outcomes. Financial openness may affect GDP growth in and …

We build and estimate a structural dynamic general equilibrium model of growth and trade. Trade affects growth through …, growth affects trade, directly through changes in country size and indirectly through altering the incidence of trade costs …. Theory translates into an intuitive econometric system that identifies the causal impact of trade on income and growth, and …

This paper quantitatively investigates the short- and long-run effects of liberalizing global migration on the world … distribution of income. We develop and parametrize a dynamic model of the world economy with endogenous migration, fertility and … are gradual and cumulative. In case of a complete liberalization, the world average level of GDP per worker increases by …

-peaceful world. But how much would individual be willing to pay to avoid just the economic costs of conflict? Remarkably, even these … current level of consumption to live in a purely peaceful world. Such large potential welfare gains from reducing warfare …

This paper examines whether growth regressions should incorporate dualism and structural change. If there is a … factor productivity. The paper develops empirical growth models that allow for this effect in a more flexible way than … labour can explain a significant fraction of the international variation in TFP growth. …

In this paper, foreign aid transfers can distort individual incentives, and hence hurt growth, by encouraging rent … this framework, the growth impact of aid is examined jointly with the determination of rent-seeking behavior. We test the … that aid has a direct positive effect on growth, which is however significantly mitigated by the adverse indirect effects …

observations on 177 countries from 1968 to 2000, which brings together information from the Penn World Table dataset, the ITERATE … panel growth regression analysis and a structural VAR model. We find that, on average, the incidence of terrorism may have … an economically significant negative effect on growth, albeit one that is considerably smaller and less persistent than …

A new line of theoretical and empirical literature emphasizes the pivotal role of fair institutions for growth. We … dramatic drop in cooperation (and growth), when inequality is increased by a selfserving dictator. No such effect is observed … adverse growth effect of the interaction between the degree and the genesis of inequality. We conclude that economies giving …

partly to the redistributive effect of education spending. In the model income inequality and growth depend in an inverted U … requires more resources, which lowers pre-tax and post-tax income inequality as well as growth. Using consistently defined … income data from the Luxembourg Income Study suggests that there is a negative relationship between growth and income …