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 technologies. Our main contribution is to calibrate and numerically solve the model and to examine th...

We study the competitive equilibria of a two-country endogenous growth model in which the source of growth is the linearity of technology in reproducible inputs. We begin by showing that in a model with no externalities there is a unique equilibrium; however, there are multiple ways in which the social planner can allocate production plans across countries. We then introduce an externality to h...

Empirical evidence demonstrates that credit standards, including lending margins and collateral requirements, move in a countercyclical direction. In this study, we construct small open economy model with financial frictions to generate the movement standards. Our analysis fluctuations standards work as an amplifier of shocks economy. particular, existence endogenous increases output volatility...

Abstract This paper studies the joint dynamics of foreign direct investments (FDI) and output growth in European regions by using spatially augmented systems equations modeling framework that incorporates third‐region spillover effects. The is used to study dynamic impacts regional human capital endowments, which demonstrates importance explicitly accounting for an endogenous relationship. rela...

The recent literature on taxation and growth has stressed the optimality of a zero long-run taxation on all accumulative factors of production. For a given path of government spending, the optimal tax plan requires the government to build up a positive stock of public wealth in the short run in the long-run, government spending can be financed with the income accruing from the management of the...