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Trade, Growth, and Convergence in a Dynamic Heckscher-Ohlin Model

Bajona, Claustre; Kehoe, Timothy - In: Review of Economic Dynamics 13 (2010) 3, pp. 487-513

In models in which convergence in income levels across closed countries is driven by faster accumulation of a … productive factor in the poorer countries, opening these countries to trade can stop convergence and even cause divergence. We …. Divergence can occur for parameter values that would imply convergence in a world of closed economies and vice versa. Second …

Persistent link: https://www.econbiz.de/10008504403

A Tale of Two States: Maharashtra and West Bengal

Lahiri, Amartya; Yi, Kei-Mu - In: Review of Economic Dynamics 12 (2009) 3, pp. 523-542

In this paper we study the decline of West Bengal relative to Maharashtra, historically two of the most important states of India. In 1960, West Bengal's per capita income exceeded that of Maharashtra, the third richest state at the time. By 1993, it had fallen to just 69 percent of...

Persistent link: https://www.econbiz.de/10004991315

A Two-Country Model of Endogenous Growth

Farmer, Roger E. A.; Lahiri, Amartya - In: Review of Economic Dynamics 8 (2005) 1, pp. 68-88

We study the competitive equilibria of a two-country endogenous growth model in which the source of growth is the linearity of technology in reproducible inputs. We begin by showing that in a model with no externalities there is a unique equilibrium; however, there are multiple ways in which the...

Persistent link: https://www.econbiz.de/10005069614

Economic Development and Growth in the World Economy

Castro, Rui - In: Review of Economic Dynamics 8 (2005) 1, pp. 195-230

This paper investigates whether technological shocks, constructed to be consistent with the observed cross-country income dispersion, are also capable of accounting for development regularities related to capital accumulation. This question is approached via a quantitative theoretical analysis...

Persistent link: https://www.econbiz.de/10005069714

Quantifying the Impact of Financial Development on Economic Development

Greenwood, Jeremy; Sanchez, Juan; Wang, Cheng - In: Review of Economic Dynamics 16 (2013) 1, pp. 194-215

How important is financial development for economic development? A costly state verification model of financial intermediation is presented to address this question. The model is calibrated to match facts about the U.S. economy, such as the intermediation spreads and the firm-size distributions...

Persistent link: https://www.econbiz.de/10010600536

Fiscal Policy and Default Risk in Emerging Markets

Cuadra, Gabriel; Sanchez, Juan; Sapriza, Horacio - In: Review of Economic Dynamics 13 (2010) 2, pp. 452-469

Emerging market economies typically exhibit a procyclical fiscal policy: public expenditures rise (fall) in economic expansions (recessions), whereas tax rates rise (fall) in bad (good) times. Additionally, the business cycle of these economies is characterized by countercyclical default risk....

Persistent link: https://www.econbiz.de/10005009772