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This paper surveys the first stage in the development of models of endogenous growth over the two decades between 1952 and 1973, including seminal works by Arrow, Frankel, Phelps, Uzawa, and others as faculty and graduate students who interacted in the Stanford–Chicago–MIT–Yale Nexus. The paper also deals with American Economic Association (AEA) and Econometric Society (ES) conference sessions over the period 1964–1968 on growth, technical progress, and innovations and with the contributions in the 1967 Shell volume, in addition to dissertations, working papers, and book chapters by those involved in the “first wave” over the period 1965–1973. Finally, the paper considers the initial efforts at building more sophisticated models based on technical progress, human capital, increasing returns and imperfect competition, and the incompatibility between increasing returns with competitive equilibrium. [ABSTRACT FROM AUTHOR]

Presents a series of abstracts on various topics of economics published in the March 1964 issue of the periodical 'Oxford Economic Papers,' vol. 16. Appraisal of short and long term competition from the point of view of businessmen; Overview of limits to a firm's rate of growth; Assessment of various aspects of dynamic equilibrium; Techniques for the structural analysis of the growth of an economy.

Fiscal policy has been a topic of research interest for researchers. It plays a very important role in the economic growth of any country. Fiscal policy does not only achieve economic development but eliminates the hindrances that assist economic stability. Based on the significance of the term. This paper evaluates the research output of the term fiscal policy since 1970 in different fields using the Scopus database. The data was collected from the Scopus database and were analyzed using Microsoft Excel to analyze the research trends on fiscal policy. It is concluded that fiscal policy has been a topic of researchers' focus since 1970 but higher attempts are made after 2000. Most of the researchers prefer journal article publications and only 1% are in the press, whereas all other articles are already published. Most of the publications are published in the English language and the researcher from the field of Economics, Econometrics & Finance, Social Sciences and Business, Management & Accounting are publishing the most on fiscal policy. This paper will assist the junior researchers to find the gap and design their future research on fiscal policy as this paper compiles the database of the last five decades available on Scopus. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to analyze the impact of the Stabilization and Association Agreement (SAA) on the economic development of the Western Balkans. The basic aim of this agreement was the economic development of the countries of this region. Many firms would benefit from trade and contractual relationships with the European Union (EU). The methodology used is the gravity model, which predicts bilateral trade flows based on the economic sizes and distance between the EU and the Western Balkans. The model has been used in international relations to evaluate the impact of treaties on trade, and it has been used to test the effectiveness of trade agreements on the economy. Statistics of export, import, economic growth, etc. have been provided for a ten-year period 2007-2017. This paper is based on the research of Qorraj (2016), Qorraj and Jusufi (2018), and Leka et al. (2022). The relevance of the paper depends on that, within the ten years, there was no significant increase in the exports of these countries to the EU market. This paper concludes that the SAA has not ensured the export growth of these countries because products originating from this region are not competitive in the EU market, EU exports to this region have increased more than the other way around. [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine how economic development and stability are affected by carbon trading pilot programs. Using panel data from 31 Chinese provinces and autonomous regions between 2005 and 2021, two hypotheses were tested using the DID model. The findings indicate that (1) the carbon trading market pilot program has an immediate effect on economic stability. (2) High-quality economic development is positively and significantly impacted by the carbon trading market pilot program. Regional heterogeneity exists in the effects of carbon trading pilot programs on high-quality development and economic stability. The relationship between carbon trading pilot programs and economic development is not conclusive, despite the growing number of these policies. Given this, additional investigation into this connection is required. Understanding the results of carbon trading pilot programs can be used to gauge how successful these initiatives are. This research adds to the body of knowledge regarding the impact of the carbon trading pilot programs. It then makes policy recommendations that may serve as a guide for future "double carbon" research. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper theoretically analyzed the influence of symbiosis intimacy, cultural coupling, betrayal cost, degree of lock-in, geographic distance, and economic development on the stability of the coupling symbiosis network of industry-university-research (IUR), and conducted empirical analysis. The study found that symbiosis intimacy, cultural coupling, betrayal cost, degree of lock-in, and economic development all play a role in promoting the stability of the coupling symbiosis network of IUR, while geographical location is related to the stability of the coupling symbiosis network of IUR, but does not have a direct impact. Based on the empirical analysis results, the countermeasures and suggestions to improve the stability of coupling symbiosis network of the IUR were proposed. [ABSTRACT FROM AUTHOR]

Regulators should ensure the smooth functioning of the system and promote regional development. Making the health of financial institutions is therefore a prerequisite for a sustainable economic development. This paper contributes to the literature on the relationship between the financial stability and growth within the area of one country. This implies that institutional, legal, and cultural factors are more adequately controlled for and financial markets are more accurately bounded. Using a rich sample of Italian banks over the 2001–2012 period, this paper addresses whether different measures of financial distress affect economic development of labour market areas in Italy. Results show that the financial stability has a positive effect on local economic development, robust to alternative variables capturing financial vulnerability. The presence of spatial effects is tested showing that better financial conditions of the banking system in neighbouring areas have a detrimental effect on an area's growth. [ABSTRACT FROM AUTHOR]

This paper analyzes the interaction between the distribution of human capital and economic growth in the model mainly based on Galor and Tsiddon (1997) and Galor (1996). In these models, they assume to have only one type of human capital. But this paper assumes that there can be two types of human capital, unskilled labor and skilled labor, and we assume that they have their own dynamical systems respectively about the evolution of human capital, depending on Galor and Moav (2000). As a result, we can point out two types of equilibrium which may become available as steady state equilibrium. In one equilibrium, type change of human capital cannot occur. But in this model, there may be type change between unskilled labor and skilled labor. This result means that the standard level of human capital play an important role in the determination of the pattern of economic development. If a cost is not taken for the movement of the labor at all, the influence which exerts on the economic growth can also be reviewed by this model. [ABSTRACT FROM AUTHOR]

This paper analyzes the interaction between the distribution of human capital and economic growth in the basic model mainly based on Galor and Tsiddon (1997) and Galor (1996). In these model, they assume to have only one type of human capital. But this paper assumes that there can be two types of human capital, unskilled labor and skilled labor, and we assume that they have their own dynamical systems respectively about the evolution of human capital, depending on Galor and Moav (2000). As a result, we can point out two types of equilibrium which may become available as steady state equilibrium. In Galor and Tsiddon (1997), the bipolarization of human capital is canceled by technological progress. But in this model, we point out that there is no guarantee that the bipolarization is canceled by technological progress if unskilled labor and skilled labor have their own dynamical systems. [ABSTRACT FROM AUTHOR]

This paper is a continuation of the work by Panek [2013a], [2013b] and Panek and Runka [2011], with direct reference to [2013b]. The difference between this paper and paper [2013b] reveals when applying a different optimality criterion with the help of which growth processes are assessed. The optimality criterion in [2013b] is the value of production in the last period of a fixed planning horizon T={ 0 ,1 ,..., f } measured in von Neumann equilibrium prices. In this paper we take the total value of output (also measured in von Neumann prices) produced in the whole horizon T as a growth criterion. The aim of the paper is to prove that a change of growth criterion does not deprive the economy of its turnpike properties. It was pointed out that a Gale economy with a changeable technology convergent to the limit technology also preserves similar properties if we accept the social utility function (with standard properties) as a growth criterion. The paper consists of three sections. In Section 1 we present a non-stationary Galetype model with a limit technology. Section 2 contains proof of the so-called 'weak' turnpike theorem, whilst in Section 3 we prove a 'strong' version of the turnpike theorem for the economy under investigation. The paper closes with final comments. [ABSTRACT FROM AUTHOR]

Over the past three decades, analysis of dynamics has come to the forefront of macroeconomic theory. A key impetus for progress on this front has been the connections developed between equilibrium growth theory, on one hand, and the field of nonlinear dynamics, on the other. Kazuo Nishimura's work has been at the center of these advances, and the lines of research he initiated remain an exciting area of study for young researchers with strong technical skills. [ABSTRACT FROM PUBLISHER]

Though the Baltic Sea countries have displayed substantial reform-facilitated growth and trading activity over the last decade, significant trade barriers still exist. We analyse their implications, using a CGEmodel. Besides the "usual suspects" (tariffs, subsidies, and service barriers) and trade facilitation, we address non-tariff-measures (NTM) in a separate scenario. We find that reforms would substantially boost national income and trade, especially for the group of emerging economies. Income gains are primarily due to elimination of dead-weight losses caused by rules and regulations and improved resource allocation. Jointly, the simulations indicate a move towards services and industrial production and exports. [ABSTRACT FROM AUTHOR]

This paper presents an innovative interpretative scheme of the relationship between economic growth and income inequality, taking the primary distribution of income between profits and wages as the main explanatory variable. For that purpose, two lines of research are taken as a reference point: first, the Bhaduri-Marglin Model, which explains growth in terms of the effect that factor shares have on aggregate demand; and second, recent empirical analyses that also use the functional distribution to explain the evolution of the top income shares and the Gini index. After reviewing the literature on the growth-inequality relationship, the paper identifies several relationships between primary and interpersonal distributions of income in each of the Bhaduri-Marglin Model's growth regimes. It finds multiple causal relationships between growth and inequality as well as inequality and growth, clarifying their implications for economic and social stability. The paper offers final reflections on the way the scheme can further the understanding of current economic and social crises. [ABSTRACT FROM AUTHOR]

The main purpose of this paper was to analyze the impact of corruption, unemployment, foreign direct investment and political stability on the level of economic development using data from 1999. Estimated models for correlation and multi factorial regression result that only Foreign Direct Investment as an independent variable is statistically significant. This variable affect positively in economic development, while other variables such as corruption, unemployment and the index of economic stability are not statistically significant and they to have a negative effect on GDP growth of North Macedonia. [ABSTRACT FROM AUTHOR]

Abstract: In this paper we construct a general equilibrium model of trade and illustrate that return to unskilled labor may be negatively correlated with the price of product it produces. Specifically, we show that greater protection for the intermediate good that uses “unskilled” labor can reduce the unskilled wages. This result has interesting political‐economic implications. [ABSTRACT FROM AUTHOR]

The paper by Lucas (1978) "Asset Prices in an Exchange Economy" initiated a paradigmatic change in the Theory of Equilibrium Pricing of Risky Assets. It was followed by several papers including those by Brock (1979, 1982), Prescott and Mehra (1980) and Donaldson and Mehra (1984) who generalize Lucas' model to a production setting. In this paper, we examine a variation of Lucas' pure exchange model. In Lucas' model the level of consumption follows a Markov process. Observing the large increases in per capital consumption in the past, we postulate that the growth rate of consumption follows a Markov process, an assumption that enables us to capture the nonstationarity in the consumption series. Our extension is particularly relevant for empiricists interested in testing consumption-based asset pricing models in the Lucas-Prescott research tradition. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to provide a different context for considering issues of financial stability and instability, with reference to economic growth and price stability in particular. Design/methodology/approach – This paper pursued an empirical exploration of six pillars of financial stability, based on a data set for the UK extending from 1985 (Q1) to 2008 (Q2), through the construction of a vector error correction model, including an impulse response function analysis. Findings – The findings show a strong association between the financial and economic stability even in a non-crisis regime. This includes, for example, a strong association exists between the stock market and the real economy; exchange rate appreciation may not provide for long-term real economic growth; inflation does not contribute to real economic growth, both the sensitivity of the economy to yields and a significant lag in transitional effects from financial markets to the real sector; a positive role of credit creation within a non-crisis regime; exchange rate appreciation affects purchasing power; and potential points of linkage between sovereign debt activity and general price levels. Research limitations/implications – The findings should be considered in the context of a concept of the economy as fundamentally dynamic and subject to complex cumulative processes. Practical implications – The findings indicate there is a role for state oversight and intervention within a non-crisis regime based on the complexity of possible interactions that may undermine financial and price stability, with consequences for their association with economic growth. Originality/value – The study provides a new perspective for considering issues of financial stability and instability. [ABSTRACT FROM AUTHOR]

Greece is a country undergoing major changes in its course towards recovering from the recession and meeting the desirable economic standards. Over the past years, a series of legislative acts have reformed not only the sectoral policies and guidelines for the development of the main economic sectors of the country, but also the spatial planning policy and system, which in the period of just two years (between 2014 and 2016) underwent a double reform (Laws 4269 and 4447). Planning procedures became more ‘favourable’ to investments and the market’s needs. However, despite this early shift towards a more flexible and neoliberal approach, competitiveness and economic growth have not yet been achieved, whilst spatial planning is still ‘on hold’, leading to further entrepreneurial hesitancy and to a further delay in meeting the State’s requisite economic goals. The paper aims to contribute to the ongoing discussion regarding the future of spatial planning in Greece, in view of achieving economic stability and prosperity. The paper concludes that a suitable spatial planning model for Greece should prioritize public interest and territorial justice, in a way that it will not asphyxiate or discourage private sector initiatives that are so needed for the economic recovery. [ABSTRACT FROM AUTHOR]

The paper is a study of pervasively complementary relations between money, spending, and real economy with technological change. The endogenous interrelations between these variables sustain price stability and economic growth. The usual full-employment implications of inflation and neutrality of monetary and fiscal effects on the real output in the money, spending, and real economy model that is formalized are shown to change several of the consequences of the Keynesian and monetarist model of general macroeconomic equilibrium. Instead, a Schumpeterian growth model, and financial implications of Romer's endogenous growth model stand out to be more appropriate. The conceptual model of the money, spending, and real economy endogenous relationship with technological change is rendered to empirical testing by the circular causation model, as in the case of Myrdal's cumulative causation, but with financial implications. Malaysian data are used in the estimation of the system of circular causation equations. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to investigate two famous postulates of the Schumpeterian doctrine and its implications for the US economy. Design/methodology/approach -- Analytically, the authors investigate whether sector size matters for sectoral: technological change and stability, as expressed through the relevant quantitative measures and variables. To this end, the authors test a number of relevant models that express the various forms of this relationship. More precisely, the authors use panel data for the 14 main sectors of economic activity in the USA over the period 1957-2006, just before the first signs of the US and global recession made their appearance. Findings -- The results seem to be in line with the Schumpeterian postulate that market size matters for technological change and economic stability, for the US economy (1957-2006). Clearly, further research would be of great interest. Originality/value -- This work contributes to the literature in the following ways: first, it provides an extensive review of the literature on the subject and adopts two relevant methodological approaches. Second, based on these quantitative approaches, the paper offers a complete investigation of two famous postulates of the Schumpeterian theory for the US economy, and it is the first, to the best of the authors' knowledge, to do so by sector of economic activity, in a panel data framework. Third, the paper uses a wide data set (1957-2006) to examine the US economy up until the first signs of the US and global economic recession made their appearance. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper proposes a theoretical method to account for historical episodes of growth disparity. A numerical computation shows that the properties of the local dynamics of the proposed model are consistent with the facts indicated by selected episodes. [ABSTRACT FROM AUTHOR]

Governments and global institutions are working to enhance economic development as a key for sustainability by including disadvantaged people (including the poor, women, youth, and illiterate) in the financial system. This paper uses the World Bank Global Findex Database (2014) for 1000 Palestinians to examine the influence of individual behavior on financial inclusion in Palestine. This study used empirical methods to determine whether individual socioeconomic characteristics influence financial inclusion in Palestine. The results indicated that females were less likely to be included in financial transactions, especially transactions involving borrowing and formal accounts. Further, we learned that borrowing behavior in Palestine leans toward informal sources. Formal institutions have made remarkable efforts to develop an inclusive financial infrastructure in Palestine. However, the country's unstable political climate continues to impede economic stability and individuals' motivation to use formal financial resources such as credit. More efforts to specifically encourage youth, the poor, and women to use formal banking could enhance their access to financial services. Adopting Islamic financial services, and online banking would also improve financial inclusion for all of Palestine's citizens and drive sustainable development. Further, theoretical and empirical studies of Palestine's economic development are recommended. [ABSTRACT FROM AUTHOR]

This paper develops a general equilibrium model for the Republic of Croatia to evaluate CGE model use in macroeconomic management and forecasting. Since Croatia is a small open country subject to large external shock and growth constraints efficient macroeconomic manage-ment framework is fundamental. The lack of data prevents to follow historic economic variables over a longer period of time, which is why CGE models look as possible solution. CGE models use calibration to solve the problem of missing most macroeconomic variables. After developing the model, we use it to run different scenarios for economic policies using a CGE model for Croatia. Results show that CGE model can be an important instrument for policy makers in running mac-roeconomic policies for small open countries. [ABSTRACT FROM AUTHOR]

China's Western Development Strategy (WDS) has been carried out since 1999 with remarkable achievements, whereby Western China also experienced a rapid and stable development during the past decade. This paper analyzes policy actions and effects of WDS. The findings indicate that Western China's economic development has experienced a dramatic reversion after implementation of WDS, which to a certain extent, proves that WDS has played a significant role in promoting western regions' development. This paper also reveals some key constraints on Western China's economic development and then offers a set of policy ideas for the next stage of Western development. [ABSTRACT FROM AUTHOR]

This paper investigates the effects of oil-financed public investment on economic growth and poverty reduction using a dynamic multi-sectoral general equilibrium model featuring inter-temporal productivity spillovers. The paper shows that the relationship between resource-rent flows and real exchange rates, output growth, and poverty is less straightforward than simple models of the 'resource curse' suggest. Taking Ghana as a stylized agriculture-based economy with poverty most pronounced in a region with home based agricultural production, a policy mix of smoothing the real exchange rate shock and an allocation of infrastructure spending in rural areas seems to be the most promising public investment strategy to enhance growth and reduce poverty. [ABSTRACT FROM AUTHOR]

This paper uses concrete data obtained on the Albanian economy to analyse the positions of aggregate demand/supply curves in the economy. As examples from micro-economics, we have taken the models of I'Valras and Marshall, to view the possibilities of achieving an economic equilibrium. Data available from the Albanian economy, and from the global economic trends generally, have shown that the positions of curves are such, with differences in their inclination, while the classic position of the aggregate demand curve, with a negative trend, studied in the macro-economic theory, is unique. Therefore, our objective is to tnj and show the scholars of the field that the macro-economic problems must be viewed in this light, and not through the static scheme used so far. The equilibrium is met not only when the aggregate demand and aggregate supply curves are met, meaning when the aggregate expenditure are equal to aggregate production, but it exists at every moment, independently of whether it is consistent or not, while the pricing trends continue to increase, similar to two other aggregates. The understanding of such a situation should give the possibility to governments and other policy-making institutions to review their positions and relations with monetary and fiscal indicators, in a view of making the organic connection, and increasing their working effectiveness. The paper aims to show how one can define the relation between monetary and fiscal policies necessary to see their role and relevance in the economic growth of a country. [ABSTRACT FROM AUTHOR]

This study analyzes a public-spending option from mining and oil resources and its impact on Niger's economy. The windfall gain from mining and oil revenues provides an opportunity for the country to reinvest natural resource rents, enhance economic development, and address infrastructure gaps. Drawing on the country's recent and expected mining and oil exploitation, we evaluate the effects of a reinvestment policy in road infrastructure using a dynamic computable general equilibrium (CGE) model. We find that investment in road infrastructure brings positive spillover effects to other sectors of the economy and benefits to the economy in the long run. Our analysis additionally shows that reinvestment in road infrastructure, given the initial state of infrastructure in Niger, could help mitigate the resource curse. [ABSTRACT FROM AUTHOR]

This paper presents a two-sector, North-South model of endogenous growth, where the investment goods sector features learning by doing. There are no technological spillovers across countries that are integrated only via goods markets. In equilibrium, South specializes on the consumption sector. Despite strict concavity of the production function for consumption goods, the endogenous decline in the relative price of investment goods maintains the incentives for capital accumulation. Hence, specialization on the stagnant consumption sector does not entail a growth penalty. The model is consistent with a number of empirical observations: (i) the relative price of investment goods has been declining in many countries; (ii) poor countries are net importers of investment equipment; (iii) per capita income convergence has stopped in the sample of open economies. [ABSTRACT FROM AUTHOR]

Based on the advance-retreat course (ARC) model - a growth model under environmental pressure, this paper builds a bilateral import and export trade growth model under environmental pressure. By using the model, the paper analyzes the impacts of innovation on import and export growth, presents a method for computing the optimal levels of imports and exports, derives the limit values of imports and exports, and obtains the limit equilibrium between exports and imports. Finally, a strategy for promoting import and export growth and achieving a bilateral trade balance according to the limit equilibrium is designed. The findings are the following: (i) innovation growth will gradually reduce goods import and export, and services import and export will increase, (ii) the U.S. import-export structure is more reasonable than that of China, and (iii) there is big room for services import and export growth for China. [ABSTRACT FROM AUTHOR]

Before 2007/08, the European Monetary Union (EMU) was expected to be enlarged on schedule, but the European sovereign debt problem, triggered by the exogenous US sub-prime crisis, not only has revealed the EMU's fiscal coordination failure, but also has weakened regional financial integration. The stagnation of financial integration will therefore increase the cost of sustaining a monetary union, which in turn slows EMU enlargement and ruins the reputation of the euro. This paper aims to measure the damage to financial integration and to provide a more precise answer on real interest rate parity (RIP) convergence. Our estimation indicates that RIP between the EMU and some accession candidates is still valid after the interruptions of the financial crises. However, convergence of real interest rates cannot be achieved until 2030. This implies the EMU authority must strengthen regional financial integration to solidify the EMU and then be able to re-start enlargement. [ABSTRACT FROM AUTHOR]

In neoclassical economics, substitution assumptions support equilibrium models in closed systems shunning interdependence. On these grounds an array of frames show outcomes as stable, efficient, unique and determinate. Heterodox economists say equilibrium models sidestep practical knowledge and the rich reality of economic behavior. Rigor or realism, mainstream or radical, ecological, institutional, sociocultural: economics invites a wide diversity of assumptions, once shortterm models of substitution are opened to question. The answers are blurred by applications; there is clarity in a simplicity shielded from mundane detail. This paper addresses the methodological impact of planning horizons, increasing returns and complementarity, and their proper representation in economic constructions. Horizonal economics can be construed as extending orthodox standards into a realm of time, but for its subtler ramifications. Increasing returns make our relations complementary and not substitutional, loosening the tight deductions from mainstream models of choice. The horizonal extension of our received theory of price applies time to cost and demand curves, showing Marshallian scissors (supply and demand) cut outward and downward with expanded horizons. Static conceptions appear in horizonal groups, suggesting complete theories of price should specify agents' horizons, with no further radical impact: the trouble emerges with increasing returns and complementarity. Horizons stem from unbounded causality; if all we do ripples outward forever in nature and society, the relevant field of inquiry for economics is interdependent: this is the case for bounded rationality as an analytical limit to economic conceptions. In turn, interdependence suggests a use of network constructs to frame complex systemic cascades, and networks open a door to complementarity and increasing returns in transport and information exchange. The gaping maw of increasing returns and complementarity opens, swallowing down neat traditions such as stability, equilibrium, marginalism, partial analysis, supply and demand depictions of price, etc. The methodological lesson of this shift to network contexts and dynamic complex systems supersedes some of our favored doctrines and the analyses on which they stand. Without decreasing returns and substitution, neoclassical arguments simply do not work. Heterodox approaches - and their intelligent application - are required in this setting. The paper offers a few guidelines to an unexplored domain of fundamental departures. [ABSTRACT FROM AUTHOR]

The author in this article shares his views on Yao's paper which focuses on the subject of rebalancing China's economy toward domestic sources of growth. The author notes that the case for rebalancing is highly important in China among Asian countries due to a number reasons among which is that China has significant imbalances as seen in its relatively higher savings rates than other countries with similar incomes. He also tackled the issue of the sustainability of China's export-led growth model and rapid demographic transition.

This paper seeks to provide a theoretical explanation for the weak association between measures of financial structure—as defined by the mixture of bank-based and market-based financial systems in an economy—and economic development. Lenders fund risky investment projects of firms by drawing up loan contracts in the presence of an informational asymmetry. An optimal contract entails the issue of debt, equity, or a mix of the two. The equilibrium choice of contract and the financial structure depend on the state of the economy, which in turn depends on the contracting regime. Based on this analysis, the paper provides a theory that can explain the wide diversity of financial structure among middle-income countries. [ABSTRACT FROM PUBLISHER]

This paper investigates the effects of global oil and food price shocks to consumer prices in Middle East-North African (MENA) countries using threshold cointegration methods. Oil and food price shocks increase domestic prices in the long run, whereby the impact of food prices dominates. While global prices are weakly exogenous, consumer prices respond to deviations from the equilibrium relationship. The short run adjustment pattern exhibits asymmetries and is particularly strong after positive shocks. Downward rigidities on wages may play a crucial role in this regard, as the relatively weak reactions of consumer prices after negative shocks are related to labour market institutions and public subsidies. The more rigid the regulations the more pronounced are the asymmetries. Robustness checks show that international price shocks do not affect GDP growth. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between economic growth and bank concentration.We introduce imperfect competition within the banking system according to the Schumpeterian growth paradigm, and we theoretically and empirically show that the effects of bank concentration on economic growth depend on the proximity to the world technology frontier. The theory predicts that when a country reaches a sufficient level of financial development, bank concentration has a negative effect on development and growth and that this effect increases when the country approaches the frontier. However, for countries with credit constraints, growth depends on only financial intermediation. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to analyze the long-term impacts of health capital on economic growth in Singapore from 1980 to 2013.Design/methodology/approach Autoregressive distributed lag (ARDL)-ECM methodology and several diagnostic and specification tests were used to estimate the impact of health capital on economic growth on time series data covering the period 1980-2013.Findings The results confirm that health capital (measure by health expenditure per capita) positively and significantly affects Singapore’s economic growth in the long run. In addition, the equilibrium error correction coefficient lagged by one in the short-run is approximately 83.25 percent for all estimated variables, implying a considerably high speed of long-term adjustment to equilibrium following a short-term shock. Moreover, the Toda-Yamamoto’s Granger causality estimation reveals that there is a unidirectional causality from health expenditure per capita to GDP per capita.Research limitations/implications The findings imply that Singapore’s economic growth could be improved significantly if expenditure on health capital is increased. This eventually would have a substantial impact on human productivity which leads to improved output per capita. Thus, policy makers and/or the government should strive to create institutional capacity to improve basic health service by strengthening the health institutions infrastructure that produces healthy and quality manpower.Originality/value Grounded on the premises that there are little or no studies on the impact of health capital on Singapore economy, this paper provides new evidence on the potential effect of health capital on Singapore’s economic growth over the last three decades. Also, this study explore the causal effect (unidirectional or bidirectional) between health capital and economic growth. [ABSTRACT FROM AUTHOR]

Government debt is an ordinary phenomenon in the world economy. Government debt can be a source of investment and can influence the economic development. However, at the same time it can be a burden for the economy. It is proved that in case of financial instability, countries are forced to borrow on the internal and external financial markets, which can influence the economic stability. What is the case for Ukraine? This paper considers the current tendencies of the government debt of Ukraine. It examines the indicators of government indebtedness and their impact on the economy. The state and structure of the government debt of Ukraine have been analyzed. The results show the existence of a range of risks that can influence the economic development in Ukraine. The risks of high amounts of external government borrowings, the increase of state-guaranteed debt, ineffective usage of borrowed resources, and lack of control have been analyzed. The article presents propositions for the debt management improvement in Ukraine. The importance of government debt of Ukraine decrease has been proved. The propositions to cut the official level of government indebtedness has been expressed. Government borrowings can be an effective instrument for the development of the economy and the infrastructure development, but only on condition of effective usage and maintenance of a limited amount of government indebtedness. [ABSTRACT FROM AUTHOR]

Our paper aims to analyze the effectiveness of different risk-sharing mechanisms in providing stability to a monetary union. We select two stylized tools with extreme and opposite features. The first is an expansionary but conventional monetary policy that is used to help EMU's most fragile member states manage their public debts; the second is a centralized fiscal policy that allows for the transfer of a portion of these public debts from EMU's most fragile member states to those considered EMU's 'core'. By a stylized periphery-core model of a monetary union, we compare the strengths and weaknesses of these two tools in order to reach some welfare implications in terms of union stability. [ABSTRACT FROM AUTHOR]

The result of the decision whether to join the European Monetary Union, an irreversible policy choice for several European Union members, presents potentially significant costs and benefits. With a focus on the largest EU economy outside of the euro, Sweden, this paper applies the novel synthetic control method of estimation to evaluate whether there are costs or benefits associated with EMU membership in terms of various aspects of economic performance and how these have developed from 1999 to 2015. Findings indicate that Sweden would have borne non-negligible costs from currency union membership, exemplified by around 10% lower productivity, exports, investment, and consumption, and 8% greater government expenditure and imports on a yearly basis since the introduction of the euro, leading to significant cumulative reductions in potential economic activity. The robust results suggest costs may be persisting and in some cases growing in magnitude. [ABSTRACT FROM AUTHOR]

This paper extends the Das (2005) model to set up an equilibrium growth model with heterogeneous labor to analyse the growth effects after trade openness. We prove that if the terms of trade large enough before opening trade, then it is more likely that opening trade would accelerate economic growth for a small open country, vice versa. [ABSTRACT FROM AUTHOR]

This paper develops a hierarchical agency model of deposit insurance. The main purpose of the analysis is to propose a micro-founded model of deposit insurance schemes and study their effects on the behavior of depositors and the monitoring problem for a bank. This paper also characterizes a risk-based premium in equilibrium, and conducts a comparative statics analysis of depositors' optimal actions. The results supply the basic theoretical foundation for designing deposit insurance schemes. Our findings are consistent with the empirical research on depositor behavior. [ABSTRACT FROM AUTHOR]

This paper analyzes the time stability of the real economic convergence in the European Union. As a robustness check, the calculations are carried out for two groups of countries: EU27 during 1993-2010 and EU15 during 1972-2010. The analysis is based on three-year intervals, as contrasted with an analysis by Prýchniak and Witkowski (2013a) that is based on annual data. In addition, the paper examines the strength and stability of impact of selected economic growth determinants. In order to verify the research hypotheses, Bayesian model averaging is applied to Blundell and Bond's generalized method of moments system estimator. It turns out that the EU27 countries converged at a rather constant over time rate of about 6 percent per annum while the EU15 countries converged at about 3 percent per annum; this is an enormous difference compared to the widely cited 2 percent speed of convergence in the mainstream literature. [ABSTRACT FROM AUTHOR]

This paper models a focusing device of innovation in which a cluster has an o-ring type production function and each technology component endogenously upgrades its quality. We show that provided the magnitude of innovation is the same across technology components, competitive equilibrium is an efficient mechanism by which core technology-driven innovations emerge with expanding inequality among clusters. Our result is in sharp contrast to bottleneck-removed innovation which is widely accepted. The inefficiency arises, however, when low-powered incentives, such as cost plus contracting, are employed to reward innovation. In this case, the corresponding factor price provides erroneous information regarding the potential benefits of innovation, which should be corrected by some form of policy intervention. [ABSTRACT FROM PUBLISHER]

This paper examines the main systemic weaknesses of the Greek economy - structural, institutional and political - and assesses whether they were taken effectively into account in the design and implementation of the three adjustment programmes. We conclude that the economic policy mix that has been implemented through the memorandums focused mainly on treating the symptoms of the crisis instead of decisively dealing with its deeper causes. [ABSTRACT FROM AUTHOR]

We study the effects of patent protection on economic growth in the ith region when this ith region is part of an aggregate economy of i = 1, ..., N regions. The regulatory authority in the ith region attempts to curtail the monopoly power of patent holding input producers by requiring them to charge a price that is parametrically related to the unconstrained monopoly price. Our analysis generates three results. First, we show the manner in which the equilibrium growth rate of the ith region is related to the above mentioned parameter. Second, we demonstrate the impact that changes in the stringency of patent protection have on the ith region's equilibrium growth rate. Finally, we explain why eliminating the monopoly distortion does not maximize social welfare in the ith region. [ABSTRACT FROM AUTHOR]

This paper investigates how pre-existing institutions foster economic development through trade. A non-cooperative game-theoretic model is proposed that combines three strands of social science: economics, political science, and sociology. Idealized market participants follow rational decision theory within a reward structure that embodies two types of institutions. Regulative institutions operate on threat of punishment, and normative institutions on perceptions of what is good and right. This composite model allows a more quantitative analysis of the question, raised by Douglas North, of how societies diverge from the efficient state predicted by classical micro-economics. The main finding is that value can be created by different types of institution even when they are imperfect, and the range of minimum-maximum effectiveness varies with the types of economic transactions that are technologically possible. It is hoped that further refinements of the model will yield greater understanding of how the success of societies and organizations can be predicted by a few simple rules. [ABSTRACT FROM AUTHOR]

In this paper we construct a simple two-period equilibrium model for analysing the impact of post-disaster transfer payments on economic growth. This model can be used to show that direct payment of disaster relief funds may aggravate rather than mitigate the negative impact of disasters on the economy. The substitution effect of direct transfer payment depresses post-disaster labour supply and hence economic growth. This conclusion from the theoretical model is tested using Chinese provincial panel data and applying generalised method of moments (GMM) system estimation. The empirical analysis largely confirms the theoretical predictions. In China, post-disaster transfer payments are indeed found to exacerbate the negative impact of disasters on economic growth. Therefore, we suggest that relief should be oriented to create work incentive in order to avoid its depressing effect on economic growth. [ABSTRACT FROM AUTHOR]