In this paper drawing from the theoretical framework developed by Shieh et al., (2002), we present an endogenous growth model to empirical analyze the growth maximizing allocation of public capital among military spending and investment in infrastructure. Using this general model of public...

Purpose – The corporate governance should look at the investment on intangible assets (ITAs) from two angles: its influence on future growth and the influence of other factors on ITA. Therefore, the purpose of this paper is first, to empirically investigate the relationship between investment...

Purpose – The purpose of this paper is to test the hypothesis that there exists a positive link between financial development and economic growth in island economies. Design/methodology/approach – To study this relationship both static and dynamic panel data techniques (GMM) are used for a...

En el Perú, país con una asombrosa diversidad ecológica, con 84 zonas climáticas y paisajes distintos, con selvas tropicales, altas cordilleras y desiertos, puede que el contexto geográfico no sea suficiente para explicar las variaciones regionales en ingresos y bienestar, pero si es muy...

We first provide a nonparametric inference of the relationship between life expectancy and economic growth on an historical data for 18 countries over the period 1820-2005. The obtained shape shows up convexity for low enough values of life expectancy and concavity for large enough values. We...

We study the importance of the local elite as a determinant of the effectiveness of foreign aid in developing countries. An "extractive" elite will misuse aid flows, an issue that is probably as old as foreign aid itself. We proxy for the existence of an "extractive" elite by using an...

We construct a general equilibrium model of economic growth and optimally chosen fiscal policy, in which individuals compete with each other for a share of government spending and two political parties can alternate in power according to an exogenous reelection probability. The main prediction...

This paper investigates the properties of dynamic panel data (DPD) estimators in the context of a typical growth dataset. Using Monte Carlo simulations, we compare the performance of various DPD estimators, namely the Anderson-Hsiao (AH) and Arellano-Bond's General Method of Moment (GMM)...

After almost three decades of sustained economic growth, Indonesia is currently in the midst of a major economic and financial crisis. This paper seeks to contribute new evidence on three questions: who has been affected most by the crisis, how they have been affected and how they have responded...

Evidence of falling wages in Catholic cities and rising wages in Protestant cities between 1500 and 1750, during the spread of literady and the vernacular, is inconsistent with most theorretical models of economic growth. In the Protestant Ethic, Weber suggested an alternative explanation based...