Using US manufacturing industry data, we re-examine evidence of first- and second-generation models of R&D-based endogenous growth focusing on innovation (patent) quality. We show that Schumpeterian growth theories perform better than semi-endogenous growth models.

We reexamine the association between poverty, the middle class, and institutional outcomes using a newly developed cross-country panel dataset containing detailed information on the distribution of income and expenditure. When the size of the middle class increases (measured as the proportion of...

Three components govern the impact of intangible management on the growth of SMEs: human, structural and relational capitals. The relationship with the institutional system of innovation (ISI) is novel. The results highlight that the ISI does not satisfy the needs of SMEs fully.

To measure the effectiveness of programs with multiple outcomes, I combine multidimensional poverty measures with difference-in-difference matching estimators. I apply this technique on an anti-poverty program and show it is a more comprehensive measure of poverty reduction than a unidimensional...

In this paper, we supplement the identification results for the mean treatment effect for the treated in the difference-in-differences framework studied by Abadie (2005) by establishing partial identification results for the distribution and quantile of the counterfactual outcome and of the...

We find that an expansion of credit has a positive effect on per capita output growth only up to a point. Beyond this threshold the impact of finance on growth is not statistically significant anymore. We show, however, that the estimated non-linear relationship may stem from the omission of...

This paper studies whether bank competition affects growth of non-banking industries. We find that non-cooperative bank competition and stability promote industrial growth robustly. Bank concentration may also affect growth positively; the latter effect increases for higher levels of competition.

This paper examines how much financial development facilitates economic growth by nonparametrically estimating the effect of financial development on reducing the costs of external finance to firms. The data reveal substantial evidence of diminishing returns to improvement in financial development.

In a closed economy, the infinite-horizon and the overlapping generations (OG) model prescribe diametrically opposite policies on factor taxation: the former argues that the growth-maximizing capital income tax rate should be set to zero, whereas the latter argues that it should be set as high...

This paper highlights a new fact about structural change by focusing on the dynamics of the capital income share at the sectoral level. That is, the capital income share in services decreases steadily while that in the manufacturing sector increases over time. I develop a two-sector growth model...