In the line of Schumpeterian fully endogenous growth theory, this study attempts to investigate whether differences in research intensity as well as absorptive capacity help to explain cross-country differences in productivity growth in a panel of 55 sample countries including 23 OECD and 32...

Both the quality and quantity of human capital are important for growth. Although the quality aspects of human capital may have greater potential in explaining growth, given that the quantity effects of human capital have been found to be ambiguous, they have long been ignored in empirical...

This paper traces temptations to biased beliefs—instead of the standard approach that traces temptations to biased tastes. The proposed theory affords, in two ways, a more general framework than what is afforded by the standard approach: First, to start with biased beliefs can simultaneously...

This study addresses two significant limitations in the literature on cross-country expenditure comparisons: (a) treatment of all countries, large and small, as single entities with no spatial differences inside the countries, and (b) use of Divisia price indices, rather than preference based...

In this paper, we relax the hard closure property of experiments that have been used to study endowment effect in laboratory. We study differences in benchmark environments (hard closure) and an environment that allows participants to reverse the decisions taken in the laboratory (soft closure)....

This paper studies optimal monetary and fiscal policies in an economy à la Lucas and Stokey (1983) and Lagos and Wright (2005) with multiple cash and credit goods. We show that optimal policies are in general time inconsistent due to insufficient number of instruments to influence future...

This paper revisits the question of framing and the provision of public goods. It also addresses the question, is giving in Dictator Games an expression of altruism or an artefact of experimentation? What is unique about this paper is that we employ a “real donation” lab experiment in a...

Much of the recent welfare analysis in the development literature has focussed attention on poverty. This is especially true for India which has seen a large proliferation in the poverty literature. This study departs from this tradition and focuses on inequality. It is based on the premise that...

This paper revisits the question of “warm glow” vs. „cold prickle” and the provision of public goods. It also addresses the question, is giving in Dictator Games an expression of altruism or an artifact of experimentation? What is unique about this paper is that we employ a “real...

Third-party institutions (judges, real-estate agents, referees, mediators, and arbiters) are designed to avoid mis-coordination among potential cooperators. They differ from first-party institutions (lobbyists) who act as rent-seekers in bargaining. They also differ from second-party...