This chapter demonstrates the role of financial sector in achieving the demographic dividends for the Indian economy. We developed an aggregative macro-econometric model supplemented by sectoral analysis of saving, investment and industrial productivity to explore possible connections. The model...

This paper aims to measure the investment contribution of service sector in India’s economic growth. This study brings in a novel approach by using the national income accounting framework and Harrod Domar Model to quantify services investment contribution. The study makes a distinction...

A Farewell to Alms argued based on wages, rents and returns on capital that the English by 1800 were no wealthier than in 1400. An argument against this has been the supposed consumer revolution of 1600-1750. Since ordinary families by 1750 begin routinely consuming former luxury goods, income...

We construct a model of endogenous investment specific techological change in which the stock of public capital influences the real price of capital goods. We show that the growth and welfare maximizing tax rates coincide in the planned economy. When factor income taxes finance public investment...

We construct a model of endogenous growth in which public capital financed by distortionary taxes influences investment specific technological change. Our main result is that there exist infinitely many capital and labor tax-subsidy combinations that decentralize the planner's growth rate. Hence...

Productivity is a key concept in economics and crucial for economic growth. By using different theoretical models, we show the role of several kinds of productivity, including total factor productivity (TFP) and labor productivity.

The paper investigates the country receiving FDI's optimal strategy in an optimal growth context. First, if the multinational enterprise has high productivity or the entry cost is high, no domestic firm enters the new industry. Still, the host economy's investment stock converges to a higher...

We examine the relationship between digitalization and productivity, the factors that influence this relationship, and how digitalization’s effect on productivity could change firm behaviour.

The present paper provides an overview of literature on the shift to services. It follows the three dimensions of structural change - final demand, the inter-industry division of labor and inter-industry productivity differences. It first looks at the ?classics?, however (Fisher (1935), Clark...

We estimate the effect of political regime transitions on growth with semi-parametric methods, combining difference in differences with matching, that have not been used in macroeconomic settings. Our semi-parametric estimates suggest that previous parametric estimates may have seriously...