We develop a new general equilibrium growth accounting framework that features increasing returns to scale, imperfect competition and incorporates technological revolutions into the description of technical progress. We propose a way to tell apart revolutionary changes in technology and incremental innovations using stock market data. We use our framework to jointly estimate the overall embodie...

We introduce publicly funded education in R&D-based economic growth theory. The framework allows us to i) incorporate a realistic process of human capital accumulation for industrialized countries, ii) reconcile R&D-based growth theory with the empirical evidence on the relationship between economic prosperity and population growth, iii) revise the policy invariance result of semi-endogenous gr...

In this note we study the distortions in an endogenous growth model developed by Grimaud and Tournemaine (2007), where new pieces of knowledge are produced in a R&D sector and used to reduce pollution emissions. Using this model along with a realistic calibration, we conclude that the economy strongly underinvests in R&D, such that the policy maker would need to implement a strong tax-subsidy s...

In this paper, we look at the role of export composition in the growth process, considering how increased similarity in trade structure among countries can induce catching-up in income levels in a group of countries in transition. We analyze the sectoral export patterns of the Central and Eastern European countries (CEECs) by comparing them to those of the current members of the European Union ...

We build an endogenous growth model with automation (the replacement of low-skill workers machines) and horizontal innovation creation new products). Over time, the share innovations endogenously increases through increase in wages, leading to skill premium a decline labor share. calibrate US economy show that it quantitatively replicates paths premium, share, productivity. Our offers perspecti...

This paper presents an integrated view of economic growth, development traps, and economic geography. We explain why there is income convergence among some countries (neoclassical regime) and income divergence among others (poverty trap regime). Income convergence (divergence) and manufacturing industry di¤usion (agglomeration) are re-enforcing each other in a cumulative process. Moreover, trad...

Az egyesített növekedéselmélet célja, hogy a gazdasági fejlődés hosszútávú tendenciáit egységes elméleti keretbe ágyazva magyarázza meg. Ennek megfelelően egy sikeres modellnek képesnek kell lennie különböző időszakok, rezsimek közötti átmenetek keretben történő modellezésére. Ebben tanulmányban, három növekedési korszak jellemzőinek áttekintése után, két modellt mutatunk be. Míg Hansen-Prescot...

Abstract In this paper we test two versions of convergence hypothesis namely deterministic or conditional convergence and stochastic or catching up hypothesis using Carrion-i-Silvestre et al. (2005) stationary test. The results show Latin and South American countries (LSA) catching up process toward the USA failed in 1980s and somewhat in 1990s. But in 2000s most of them could lie in converge...

What are the prospects for long-run economic growth? One prominent line of thinking is trend toward stagnation. Stagnationism has a long history in economics, beginning prominently with Malthus and occasionally surfacing different guises. Prominent themes here following: Will growth slow perhaps even reverse under weight resource depletion? overpopulation diminishing returns lower living standa...