We present an analysis of the effects of foreign aid on economic development when the quality of governance may be compromised by corruption. The analysis is based on a dynamic general equilibrium model in which growth is driven by capital accumulation and public policy is administered by...

Bolivia's macroeconomic performance in the period 1994 to 1998 is analyzed and compared with the performance in former periods and the performance of other developing countries (grouped according to income, region, and debt status). This allows to assess what has been achieved in Bolivia since...

Large and sustained differences in marginal products of capital (MPKs) across countries are sharply at odds with the core implications of the neoclassical framework. Lucas (1990) and many subsequent studies have examined reasons for this MPK differential. In a recent contribution, Caselli and...

Successful economic development is usually characterized by two salient phenomena: industrialization and demographic transition. Chronologically both events happen so closely to each other that historians and economists alike suspect that they are interrelated. This paper develops a theory for...

We examine the impact of financial development on earnings inequality in Brazil in the 1980s and first half of the 1990s. The evidence- based on panel-time series data and analysis-shows that financial development had a significant and robust effect in reducing inequality during the period. We...

We examine the impact of inflation on financial development in Brazil and the data available permit us to cover the period between 1985 and 2002. The results-based initially on time-series and then on panel time-series data and analysis, and robust for different estimators and financial...

This paper provides a uni?ed growth theory, i.e. a model that explains the very long-run economic and demographic development path of industrialized economies, stretching from the pre-industrial era to present-day and beyond. Making strict use of Malthus’ (1798) so-called preventive check...

We use factor analysis to derive a robust measure of religiosity from items reported in five waves of the World Value Survey. Our measure of religiosity is negatively correlated with per capita income. Development apparently causes religiosity to fall to about half its pre-modern level. Most...

This paper introduces wealth-dependent time preference into a simple model of endogenous growth. The model generates adjustment dynamics in line with the historical facts on savings and economic growth in Europe from the High Middle Ages to today. Along a virtuous cycle of development more...

Is tourism an opportunity for lagging countries in the elusive quest for growth (Easterly, 2002)? Recent empirical evidence suggests that the answer is a cautious yes. Aggregate cross-country data show that tourism specialization is likely to be associated with higher per capita GDP growth rates...