A large literature has studied the effects of PAYG systems on fertility, human capital and growth. We argue that the social security system may also interact with longevity when the latter is endogenously determined. We show that in such an environment, in a dynamically efficient economy PAYG...

This paper explores the implications of Uni.ed Growth Theory for the origins of existing di¤erences in income per capita across countries. The theory sheds light on three fundamental layers of comparative development. It identi.es the factors that have governed the pace of the transitionfrom...

This paper asks: what can governments of new member states do to encourage MNEs to invest in R&D? There are two types of MNE R&D. Innovation can be undertaken in order to adapt its existing products and services to local stimuli. This is 'demand-driven R&D'. Innovation can also be in stand-alone...

We offer in this paper an alternative way of controlling for worker and firm heterogeneity. Our strategy assumes that the gap between the individual wage and the firm average wage, unexplained by differences in observable characteristics, gives the extent to which the individual unobserved...

Although the theoretical trade-off between the quantity and quality of children is well-established, empirical evidence supporting such a causal relationship − particularly on child health − is limited. We use two measures of child health to asses the quantity-quality trade-off across the...

This paper analyses the importance of different technological inputs (R&D and human capital) and different spillovers in explaining the differences in patenting among Spanish regions in the period 1986-2003. The analysis is based on the estimation of a knowledge production function. A region’s...

One of the concerns behind parental educational sorting is its potential to widen disparities in the ability of families to invest in their children’s development. Using data from the Fragile Families and Children Wellbeing Study, this paper investigates the association between parental...