Showing 1 - 10 of 141
This paper investigates the effects of wealth-enhanced social status using an optimizing monetary growth model with non-separable utility function between consumption and wealth. Within this framework, we first arrive a conclusion that, in the case of no wealth effects, an increase in the rate...
Persistent link: https://www.econbiz.de/10005416797
This note examines the effect of per-period communication costs in a model of expanding product variety. It is shown that while a decrease in communication costs leads to growth in aggregate output, this growth is only transitional with the growth rate falling to zero in the long run as the...
Persistent link: https://www.econbiz.de/10005416799
This paper shows that the Saito version of Solow growth model contains an error. It corrects this error. It further applies some built-in functions of Mathematica to the correct version of Solow economic growth model and derives some interesting graphs from the Solow convergent paths.
Persistent link: https://www.econbiz.de/10005416802
The paper develops a simple Solow-like growth model, with two independent geographical spaces, where migration is possible and it is stimulated by wage differences. The model assumes a congestion externality: high concentration of individual agents in one of the economic spaces implies losses in...
Persistent link: https://www.econbiz.de/10005416819
We empirically analyse the impact of trade on income levels in sub-Saharan African countries. The results indicate that the linkage between these two variables is negative for these countries. This outcome may explain the negative sign of the Africa dummy in income (or growth) regressions.
Persistent link: https://www.econbiz.de/10005416840
This paper quantifies the welfare costs of inflation in an endogenous growth setup when transitional dynamics are taken into account. We report much smaller costs than when these dynamics are omitted.
Persistent link: https://www.econbiz.de/10005416866
Panel data is used to investigate the extent of R and D spillovers between OECD countries, and the importance of barriers to technology adoption in affecting the benefits of such spillovers. Our results indicate that countries with less regulated goods and labour markets benefit more from...
Persistent link: https://www.econbiz.de/10005416871
We show that a one-sector AK model of endogenous growth with the most generalized cash-in-advance constraint is able to account for (i) the observed long-run negative relationship between the nominal growth rate of money and the income velocity of money, (ii) the empirically ambiguous effect of...
Persistent link: https://www.econbiz.de/10005416889
The Uzawa-Lucas model is believed to yield a positive dependence of the output growth on the ratio of human capital to physical capital (an empirically plausible imbalance effect). We show that the imbalance effect become less plausible for a low physical capital share and a low elasticity of...
Persistent link: https://www.econbiz.de/10005416956
The paper is concerned with structural change in the growth process and the role of uncertainty. Uncertainty is conceived as the means of removing the obstacles of growth through the activation of knightian entrepreneurship. A dynamic stochastic model of continuous-time growth is proposed. The...
Persistent link: https://www.econbiz.de/10005416960