The econometric analysis of economic growth has always been subject to major flaws and shortcomings. Data scarcity and reliability, parameter heterogeneity, omitted variable bias, endogeneity problems, … have seriously tainted estimation results. In this paper we propose an alternative...

Following the basic hypothesis of the a new approach in the analysis of the economic development, the principal reason for the actual gap in the per capita income between developed and developing countries (former European colonies) is the original wealth concentration. In this paper we tested a...

his empirical study consists of an econometric test of the complementary effect of trade and education on long run growth. The tests are perfomed using a mixed specification built on the Benhabib and Spiegel [7] model and include an estimator of trade openness. Regressions are run on a long term...

Several theories hold that income distribution affects economic growth. Some of them use cross-section country regression analysis to demonstrate their beliefs. This procedure has such a bulk of problems that its results should be analyzed carefully. Theories supported by this kind of empirical...

Recent theoretical contributions assert that income inequality impacts negatively human capital accumulation, and consequently long-run growth. Galor and Zeira (1993) show that such a relationship works primarily through financial constraints, while de la Croix and Doepke (2003) demonstrate that...

This research develops a theory about the role of within-country income inequality leading to overtaking in economic performance among countries. The theory captures two opposing effects of inequality on factor accumulation and suggests that the qualitative change in their combined effect is a...

We use US county level data (3,058 observations) from 1970 to 1998 to explore the relationship between economic growth and the extent of government employment at three levels: federal, state and local. We find that increases in federal, state and local government employments are all negatively...

Investment in network infrastructure can boost long-term economic growth in OECD countries. Moreover, infrastructure investment can have a positive effect on growth that goes beyond the effect of the capital stock because of economies of scale, the existence of network externalities competition...

Investment in network infrastructure can boost long-term economic growth in OECD countries. Moreover, infrastructure investment can have a positive effect on growth that goes beyond the effect of the capital stock because of economies of scale, the existence of network externalities competition...