In macroeconomic dynamic models the speed at which output converges to its steady state is of outstanding interest. Theoretical investigations usually focus on the asymptotic speed of convergence only. This procedure is, however, unnecessarily restrictive and hides important information. The...

So-called "uphill capital flows", i.e. flows of physical capital from relatively poor to rich countries, are a new phenomenon with yet unclear impact. We develop a unified framework incorporating economic institutions, human capital and physical capital to study the interaction of international...

We derive the optimal contributions to global climate policy when countries differ with respect to income level and pollution intensity. Countries' growth rates are determined endogenously, and abatement efficiency is improved by technical progress. We show that country heterogeneity has a...

We explore the relation between historical population density in former colonies and modern income distribution. A theoretical model highlights the potentially opposing effects of native population density on incentives for colonists to conquer or settle in new territories. While an abundant...

A large literature documents the positive influence of a city's skill structure on its rate of economic growth. By contrast, the effect of a city's age structure on its economic growth has been a hitherto largely neglected area of research. This paper hypothesizes that cities with more...

In this paper, we use a CGE model with endogenous growth to study the interplay between environmental regulation, innovation and sectoral growth. We find that a stringent reduction target for carbon emissions combined with a CO2-tax leads to structural changes. Under the assumption of a...

The paper investigates the long-run consequences of a phase-out of nuclear energy for the Swiss economy. We apply the CITE model, a CGE model with fully endogenous growth, and complement it with a bottom-up model. We find that the nuclear phase-out can be achieved at relatively low costs, even...

Since 1980, the aggregate income of oil-exporting countries relative to that of oil- poor countries has been remarkably constant despite structural gaps in productivity growth rates. This stylized fact is analyzed in a two-country model where resource- poor (Home) and resource-rich (Foreign)...

We analyze an economy in which sectors are heterogeneous with respect to the intensity of natural resource use. Long-term dynamics are driven by resource prices, sectoral composition, and directed technical change. We study the balanced growth path and determine stability conditions. Technical...

We develop a perpetual youth model to investigate how longevity affects economic growth and welfare. Life expectancy is determined by individuals’ investments in healthcare. We find that improvements in the healthcare technology always increase the steady state growth rate. Although the effect...