Although the importance of the elasticity of substitution between capital and labor (σ) has long been recognized in several branches of economics, it has not received enough attention in the growth literature. de La Grandville (1989) showed theoretically that at any stage of an economy's...

This study investigates the validity of the demand-pulling and the supply-leading hypotheses using annual data from 1968 to 2005. The bounds testing approach to cointegration is conducted to establish the existence of a long-run relationship between financial development and economic growth. An...

An optimal education subsidy formula is derived using an overlapping generations model with parental altruism. The model predicts that public education subsidy is greater in economies with lesser parental altruism because a benevolent government has to compensate for the shortfall in private...