This paper investigates the impact of output and credit market shocks on R&D spending in advanced economies and builds on the commonly accepted view that credit constraints lead to procyclical R&D spending. A theoretical model is developed where output and credit shocks are treated separately,...

This paper employs a hazard model to analyse the impact of education and two types of prison employment programmes on recidivism over a ten-year period for 4515 prisoners released from Ohio prisons in 1992. Estimations with a Weibull mixture model and propensity score approach provide two means...

The endogenous innovation research program is one of the most important theoretical agendas in modern growth theory. Progress, however, has been slowed due to an apparent empirical anomaly. In their simplest and most appealing forms the models suggest a scale effect that seems inconsistent with...

Adam Smith's theory of the gains from trade has caused controversy among economic theorists. Throughout much his work Smith argues that markets efficiently allocate resources. Smith's treatment of the gains from trade, however, is considered inconsistent with this system of natural liberty. This...

This paper uses the concept of cointegration and a theoretical framework that incorporates transitional dynamics to re-examine the evidence concerning empirical support for 1st generation, semi-endogenous growth, and Schumpeterian growth. The data for the post-war US economy show that the...

Adam Smith's theory of the gains from trade has caused a great deal of controversy among economic theorists. Throughout much of his work Smith argues that markets efficiently allocate resources. Smith's treatment of the gains from trade, however, is considered inconsistent with his system of...

This paper formulates a theoretical model to investigate the determinants of the rate of innovation across economies that differ in important ways in industrial structure and face the possibility of asymmetric knowledge spillovers between industries. In particular, I wish to extend the model of...

Evidence of the importance of urban agglomeration and the offsetting effects of congestion are provided in a number of studies of productivity and wages. Little attention has been paid to this evidence in the economic growth literature, where the recent focus is on technological change. We...

Traditionally, classical theorists assume a constant conventional share of wages in gross output. This assumption, together with fixed proportions, creates endogenous growth via an 'AK' style model. Pasinetti explored this model when the wage is allowed to adjust to ensure full employment. We...