The aim of this paper is to examine how inflation volatility affects economic growth in a small open economy. To reach this goal, a stochastic macroeconomic model with a financial sector and incomplete financial markets (due to the inclusion of jumps) is developed. It is assumed that the general...

This paper combines the standard incomplete markets model of uninsurable idiosyncratic risks and borrowing constraints with the Arrow/Romer approach to endogenous growth to analyze the interaction of risk, growth, and inequality, the latter also endogenously determined in equilibrium. We derive...

Inextricable links between international trade, growth and role of knowledge-creation are well-established in the economics literature. The issues of creation of technology, its diffusion and actual adoption have been discussed on both theoretical and empirical planes. Effective assimilation of...

General purpose technologies (GPTs) are technical breakthroughs that are able to spur growth via their pervasive use in the economy. This paper attempts to study the effects of these innovations for the economic system on an empirical and theoretical level. A structural decomposition analysis...

This paper provides an explication of the Method of Reflections developed by Hidalgo and Hausmann and a critique of their interpretation of the variables that it produces. They show that a quantity they identify with the average complexity of a country’s exports is correlated with log income....

This paper reformulates the neoclassical Solow-Swan model of economic growth in discrete time by introducing a generic population growth law that verifies the following properties: 1) population is strictly increasing and bounded 2) the rate of growth of population is decreasing to zero as time...

In standard economic growth theory it is assumed that labor force follows exponential growth, a not realistic assumption. As described in Maynard Smith (1974), the growth of natural populations is more accurately depicted by a logistic growth law. In this paper we analyze how the Ramsey growth...

Economic growth has traditionally been analyzed in the temporal domain, while the spatial dimension is captured by cross-country income differences. Data suggest great inequality in income per capita across countries, with a slight but noticeable increase over time (Acemoglu 2009). Seeking to...

Dans cet article, nous tentons d’évaluer les effets de la corruption sur la croissance, le bien-être et la pauvreté au Sénégal à l’aide d’un modèle d’équilibre général calculable dynamique. Les résultats de nos simulations montrent qu’une fuite de 10% d’investissements...

In this paper we develop a long run macroeconomic model for Austria to simulate the effects of aging on employment, output growth, and the solvency of the social security system. By disaggregating the population into six age cohorts and modelling sex specific participation rates for each cohort,...