We add to recent evidence on deindustrialization and document a new pattern: increasing industry polarization over time. We assess whether these new features of structural change can be explained by a dynamic open economy model with two primary driving forces, sector-biased productivity growth...

We develop a general equilibrium overlapping generations model which is based on the view that education makes workers more productive by increasing their ability to learn from work experience, rather than providing skills that directly increase productivity. One important implication of the...

This paper explores the impacts of more rapid growth in labor productivity in the service sector in Asia based on an empirical general equilibrium model. The model allows for input-output linkages and capital movements across industries and economies, and consumption and investment dynamics. We...

We analyze the impact of increasing longevity on technological progress within an R&D-based endogenous growth framework and test the modelś implications on OECD data from 1960 to 2011. The central hypothesis derived in the theoretical part is that - by raising the incentives of households to...

We analyze the impact of increasing longevity on technological progress within an R&D-based endogenous growth framework and test the model's implications on OECD data from 1960 to 2011. The central hypothesis derived in the theoretical part is that - by raising the incentives of households to...

Pervasive credit constraints have been seen as major sources of slow growth in developing economies. This paper clarifies a mechanism through which an inefficient financial system can reduce productivity growth. Using a two-sector model, second, we examine the implications for employment and the...

The year 2017 marks the 50th anniversary of William J. Baumol’s seminal model of "unbalanced growth", which predicts the so-called "Growth Disease", i.e., the tendency of aggregate productivity growth to slow down in the process of tertiarisation. In an important contribution published in...

For analyzing the impact of climate change and of international climate policies on the international division of labor and on regional welfare the use of a disaggregated multi–sectoral, multi–regional dynamic computable general equilibrium model is appropriate. This paper discusses the...