T last half of the twentieth century was marked by steady advance in the ubiquity of information and communication technologies (ICTs) throughout the industrialized world. The emergence of a significant “digital divide” between industrialized and developing countries is reproducing existing patterns of inequality with regard to these new technologies (Castells, 1996). During this same period, h...

The aim of this paper is to provide further insights into the linkages between stock market development and economic growth. When it is not possible to distinguish between investment projects with different rates of return, market valuation of those projects is an “average value” reflecting the expected return across all investment opportunities. Consequently, as in a typical lemon’s market, hi...

This paper proposes a one-sector multigroup growth model with endogenous labor supply in discrete time. Proposing an alternative approach to behavior of households, we examine the dynamics of wealth and income distribution in a competitive economy with capital accumulation as the main engine of economic growth. We show how human capital levels, preferences, and labor force of heterogeneous hous...

This paper suggests a theoretical framework and provides empirical evidence for a hump-shaped relationship between the fraction of novelty-seeking traits in society and current levels of per capita income. The hypothesis is that novelty-seeking traits produce two countervailing effects on aggregate productivity and hence economic development. The beneficial effect consists in explorative knowle...

This paper develops a uni...ed theory for the dynamic implications of income inequality on the process of development. The proposed theory argues that the replacement of physical capital accumulation by human capital accumulation as a prime engine of economic growth has changed the qualitative impact of inequality on the process of development. In early stages of industrialization as physical c...

This paper studies the impact of the process of technological change on the distribution of productivities and pro...ts across sectors. We ...nd that if technological progress a¤ects high-tech and traditional sectors di¤erently, the impact of changes in the determinants of economic growth may differ depending on which is the actual change. When an economy is growing faster due to an increase in...

We study how exploration versus exploitation innovations impact economic growth through a tractable endogenous growth framework that contains multiple innovation sizes, multi-product firms, and entry/exit. Firms invest in exploration R&D to acquire new product lines and exploitation R&D to improve their existing product lines. We model and show empirically that exploration R&D does not scale as...

This paper reviews what we currently know about the benefits and costs of different varieties of a “living wage”: a local government requirement, now adopted by over 50 local governments, for wages above the federal minimum imposed on employers with some financial link to the local government. The review includes economic theory, empirical research on local labor markets, and empirical research...

This research paper aims to provide an empirical validation of the impact of human capital accumulation and labour market institutions on productivity growth. The primary objective of this study is to analyse economic and employment growth tendencies in the period between 1985 and 2007 in various OECD member countries. In our estimations we followed a specific taxonomy to identify the features ...