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Since their opening up to international capital markets, the economies of Estonia, Latvia and Lithuania have experienced large and persistent capital inflows and trade deficits. This paper investigates whether a calibrated two-sector neoclassical growth model can explain the magnitudes and the...
Persistent link: https://www.econbiz.de/10011583842
Persistent link: https://www.econbiz.de/10013424391
The paper analyses the impact of tax competition on innovation in the public sector. It is shown that the effects of increased mobility of the tax base on innovation and growth are ambiguous. The negative relationship is more likely, however. Moreover, it is shown that a Leviathan government may...
Persistent link: https://www.econbiz.de/10003883964
The main objective of this paper is to analyse the effect of anti-subsidization policy in the rural sector on urban unemployment and national welfare. Two different versions have been considered: first, urban informal sector has no global exposure and the urban formal wage rate is exogenous;...
Persistent link: https://www.econbiz.de/10012778449
Are human and physical capital stocks allocated efficiently across countries? To answer this question, we need to differentiate misallocation from factor intensity differences. We use newly available estimates on factor shares from Monge-Naranjo, Santaeulà lia-Llopis, and Sánchez (2019) to...
Persistent link: https://www.econbiz.de/10012846540
The aim of this paper is to discuss the process of regional convergence within the framework of an overlapping … education funding systems and compare their performance in terms of growth rates and pace of convergence between two …-off between long run growth rate and short run convergence. In such choice, the initial capital stock and the extent of regional …
Persistent link: https://www.econbiz.de/10014146968
The paper investigates per capita income convergence across Chinese provinces over 1978-1992 period. If confirms … rate of convergence has declined since 1985 as a result of two factors. First, the shift from rural to industrial reforms …-provincial fiscal transfers has prevented convergence among interior provinces, as transfers have gone to the richer among them, mainly …
Persistent link: https://www.econbiz.de/10014074772
In a closed economy, the infinite-horizon and the overlapping generations (OG) model prescribe diametrically opposite policies on factor taxation: the former argues that the growth-maximizing capital income tax rate should be set to zero, whereas the latter argues that it should be set as high...
Persistent link: https://www.econbiz.de/10008490510