The contribution of the ‘new economy’ (NE) to economic growth in developing countries has so far been minimal. Despite the recent hype, the ‘old economy’ will for long be the fundamental force behind economic growth in transition economies. Nonetheless, in the longer run the NE offers great potential for faster economic growth in postsocialist economies. Realizing this potential is however not ...

The relative performance of open economies is analyzed in an endogenous growth model with asymmetric trade. A resource-rich country trades resource-based intermediates for final goods produced by a resource-poor economy. The effects of an increase in the resource endowment depend on the elasticity of substitution between resources and labor in intermediates’ production. Under substitution (comp...

We consider a general class of endogenous growth models with infinitely lived households and analyze how different budgetary rules affect the stability of the economy. We show that a discretionary fiscal policy implies that the government always violates its inter-temporal budget constraint along a balanced growth path, whereas a balanced budget rule tends to stabilize the economy. A rule based...

Introduction: Economic development and public welfare are some of macroeconomic goals for any country. Health economy is one of the parameters as criterion for action in evaluation of this important subject. The present study has been intended to investigate into the relationship among factors of health economy including total health expenditures (some percent of Gross Domestic Product GDP), li...

We analyze a model economy with many agents, each with a different productivity level. Agents divide their time between two activities: producing goods with the production-related knowledge they already have, and interacting with others in search of new, productivity-increasing ideas. Each meeting involves two people, each with a different productivity level. Both parties emerge from a meeting ...

The economic ramifications of the creation of a knowledge-based economy (KBE) are that it would increase the competitiveness of a country and at the same time increase its stock of knowledge for future economic innovations. Economists have now shifted their focus to the creation and diffusion of knowledge to explain the varying levels of this economic growth and development. In the last couple ...