Welfare economics shows how innovation and cost control are necessary to correct the negative externalities of production and consumption patterns to ensure a path of sustainable growth. When welfare economics describes the fundamentals of green growth, with innovation as a cornerstone for the...

In this paper, we show that the recent financial crisis has significantly affected the potential total factor productivity (TFP) of the four largest euro area economies, as well as that of the rest of the euro area. We used a reduced-form equation of TFP, based on an approach recently developed...