This paper presents an endogenous growth model of directed technical change with vertical and horizontal R&D to study an analytical mechanism that is consistent with the coexistence of aggregate stability and structural change. We focus on changes in the share of the high- versus the low-tech...

This paper studies a non-degenerate price distribution for the homogeneous good within a model of endogenous directed technical change. A probability density function is analytically derived and shown to be related to the technology and innovation parameters of the model.

This paper builds an endogenous growth model of directed technical change with vertical and horizontal R&D and scale effects at the industry level to study an analytical mechanism that is consistent with the observed cross-country pattern in the skill structure, the technology structure and...

Based on an extended model of endogenous directed technical change and on cross-country data, we identify and quantify the long-run link between: (i) the technology structure (high- versus low-tech sectors) and the skill structure (high- versus low-skilled workers), by considering an explicit...

We summarise Runge-Kutta type methods for the solution of ordinary differential equations in models of economic dynamics. In this work we are going to present explicit Runge-Kutta type methods, a family of methods to solve numerically systems of ordinary differential equations, without the need...

It is known that the discretization of continuous-time models can introduce chaotic behaviour, even when this is not consistent with observations or even the model’s assumptions. We propose generic dynamics describing discrete-time core-periphery models that comply with the established...

This paper incorporates healthcare and creative activities in the Ramsey-Cass-Koopmans model in order to analyse the endogenous growth effects arising from governmental policies. An increase in lump-sum taxes and inefficient expenditures decrease the short, medium and the long-run economic growth.

Ponzi and Madoff names, as well as the Portuguese D. Branca, are so-called investment schemes that have become well-known. These scams are widespread and continue to exist, with more or less modifications, depicting serious damage to many people and society in general. Being a phenomenon of easy...

Based on Greenwald and Stiglitz (1988,1990), this work explores a simple model of microeconomic behaviour which incorporates the impact of capital markets imperfections generated by asymmetric information on firms’ optimal investment decision rules. In particular, this paper analyses how a...