The Federal Democratic Republic of Ethiopia is a landlocked country in the Horn of Africa and is one of the most biologically and culturally diverse countries on the continent. With a population of about 92 million, Ethiopia is the second most populous country in Sub-Saharan Africa. Despite being one of the poorest countries, with a per capita income of US$454 (substantially lower than the regi...

Spolaore and Wacziarg (2009) have presented evidence supporting a role of genetic distance to the United States as a barrier to economic development. We extend their empirical work by controlling for the share of Europeans and European descendants in the population. We find that the role of genetic distance disappears and offer two alternative interpretations of the patterns in the data.

This work examines the presence of unobserved components in the time series of Total Factor Productivity, which is an idea central to modern Macroeconomics. The main approaches in both the study of economic growth and the study of business cycles rely on certain properties of the different components of the time series of Total Factor Productivity. In the study of economic growth, the Neoclassi...

Stock price bubbles are often on productive assets and occur in a sector of the economy. In addition, their occurrence is often accompanied by credit booms. Incorporating these features, we provide a two-sector endogenous growth model with credit-driven stock price bubbles. Bubbles have a credit easing effect in that they relax collateral constraints and improve investment efficiency. Sectoral ...

The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters. This paper attempts to provide microfoundations for the knowledge production function in an idea-based growth model. Production of new ideas is made a function of newly reconfigured old ideas in the spirit of the way an agricultural research station develops improved plan...

The long term goal attaining of economic system management requires the establishment of a dynamic framework to integrate multiple perspectives. This article considers the problem of economic development in macro level. As economic systems are complex adaptive systems composed of numerous numbers of components of dynamic and multidimensional nature, dynamics method is applied in this research. ...

Standard textbook economic theory quite generally assumes the neoclassical economic model, which is a static model of unregulated free markets. Every western government in our era believes implicitly in a free market with “springs,” where imbalances are only of short-term nature. The model postulates the nonempirical idea of utility and assumes stable equilibrium, a notion that goes back over t...