This paper re-examines the empirical relationship between financial development and economic growth. It presents evidence based on an updated data set, a variety of econometric methods and two standard measures of financial development: the level of liquid liabilities of the banking system and...

The analysis finds that in addition to U-shaped paths of environmental quality arising for growth in income per capita, growth in population can also produce socially efficient patterns that are U-shaped. Sufficient conditions for both types of paths are identified for a range of models and...