The relative stability of aggregate labor share constitutes one of the great macroeconomic ratios. However, relative stability at the aggregate level masks the unbalanced nature of sectoral labor shares. We present a two-sector (manufacturing and services) model with induced innovation that can...

This paper analyzes the effect of trade on growth, when technology adoption is endogenous and depends on factor prices. It shows that trade can lead to an increase in income disparities across countries, as the rich countries grow much faster than the poor countries. This is due to...

Endogenous growth theory assigns an important role for entrepreneurship in the process of economic development. This paper sets to formally test the impact of entrepreneurship on economic growth. Entrepreneurship is represented by a number of proxy variables, whereas Total Factor Productivity is...

This paper explores the interconnections between the BRIC economies and the world economy by analyzing their key competitiveness and disadvantages in the global value chains. It shows evidence that the BRIC economies continue in the lower value-added fragments of the global value chains. In the...

We introduce endogenous directed technical change into numerical integrated climate and development policy assessment. We distinguish expenditures on innovation (R&D) and imitation (international technology spillovers) and consider the role of capital investment in creating and implementing new...

India has been posting high growth figures on one hand, while on the other; it is recording an increase in unemployment rate. The growth of the country is not being able to absorb the growing labour force. In this paper, we develop a two-sector macro-economic model that serves us two purposes....

This paper uses a formal model to analyze the effects of rent seeking contest on production when the contestants are both rent seekers and producers and production output is an input of rent seeking effort. Great economies of scale in rent seeking and an even distribution of rent seeking...

The current global crisis (whose origins lie in the functionality of financial markets) has diverse repercussions for intellectual capital creation (i.e. human and structural assets as well as their components). The phenomenon is linked with limited resources being allocated to innovative...

This paper presents a neoclassical-growth model in which long-run growth is driven by the continuous specialization of capital. The specialization of capital is the allocation of capital into sets of specialized capital and the coordination required for different individuals to use the same set...

The relative stability of aggregate labor's share constitutes one of the great macroeconomic ratios. However, relative stability at the aggregate level masks the unbalanced nature of industry labor's shares - the Kuznets stylized facts underlie those of Kaldor. We present a two-sector - one...