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US State governments invest in early-stage innovative activity as an economic development strategy. Nevertheless, attention directed at the public sector's role in this capacity has been placed on federal policy actions overlooking the growing role of states. The primary aims of this paper are two-fold: (1) to articulate the motivations for multilevel public support for small business innovative activity, placing emphasis on state level incentives directed towards entrepreneurial activity; and (2) to empirically evaluate the State Match Phase I (SMP-I) program. The SMP-I program is a diffuse state level policy designed to complement the federal Small Business Innovation Research (SBIR) program by offering noncompetitive matching funds to the state's successful SBIR Phase I recipients. This offers an opportunity to examine the marginal impact of public R&D given the state intervention. This paper employs a state and year fixed effects model and considers two outcome variables-SBIR Phase II success rates and SBIR Phase I application activity. To account for industrial heterogeneity, the data are stratified by the federal mission agencies. Results from the empirical analysis indicate that the state match increases the Phase II success rates for firms participating in the National Science Foundation SBIR program. [ABSTRACT FROM AUTHOR]

Regional prosperity increasingly depends on a region's capacity to have command over the production of ideas. Measuring the production of ideas with patents, the objective of this paper is to analyze how the number of utility patents granted to inventors in U.S. States in different technologies changed between 1997 and 2007 and how States took advantage of the new opportunities and adapted to the changing technology landscape. The paper uses shift-share analysis, traditionally used in employment studies, for analyzing change in patents by technology categories developed by the NBER. The shift-share results show that only a few states were able to take advantage of the information technology driven increases in patents. California dominates in patent production and may be providing spillover benefits to neighboring states. The shift-share decompositions are used as variables in a fixed-effect panel-regression model of state economic growth. The regression results show that the shift-share decompositions provide statistically significant information in explaining growth after accounting for a State's stock of patents, suggesting that States should concentrate on effective ways to boost their stock of knowledge in rapidly growing technologies to improve state economic growth. [ABSTRACT FROM AUTHOR]

The composition of economic growth can be analyzed in two different ways. In the ‘traditional method’ for the decomposition of GDP growth, total imports are deducted from exports. This approach underestimates the importance of exports for the growth in GDP, and overestimates the importance of domestic expenditure categories. In the alternative methodology proposed in this paper, imports are allocated to all expenditure categories. Although this ‘import-adjusted method’ is more complex than the ‘traditional method’, it has the considerable advantage that the contributions of the expenditure categories to GDP growth provide a better understanding of why GDP growth decelerates or accelerates. The methodology and data requirements for calculating the import content of final demand, and the implications for the decomposition of real GDP growth, are discussed. For six European countries and the United States, the paper shows that applying the alternative methodology provides rather a different economic story. [ABSTRACT FROM AUTHOR]

The 1990s were an extraordinary period for the US economy, both because of declining budget deficits and emerging budget surpluses, as well as high rates of economic growth. This paper challenges the conventional wisdom that high growth rates caused budget improvements, and claims that budget consolidations also contributed to fostering economic growth. We propose the existence of a non-Keynesian effect, where fiscal policy runs counter to Keynesian theory and fiscal consolidation can foster economic growth. We present empirical evidence that an increase in tax revenues reduces the distortionary bias of future taxation and therefore leads to an increase in consumer confidence and consumption. Two supply side effects are proposed: a reduction in transfers reduced labour market pressures and government savings provided liquidity for financial markets, both of which increased incentives to invest. [ABSTRACT FROM AUTHOR]

Does population diversity matter for economic development in the long run? Is there a different impact of diversity across time? This paper traces the short-, medium- and long-term economic impact of population diversity resulting from the big migration waves of the late nineteenth and early twentieth centuries to the United States (US). Using census data from 1880, 1900 and 1910, the settlement pattern of migrants across the counties of the 48 US continental states is tracked in order to construct measures of population fractionalization and polarization at county level. Factors which may have influenced both the individual settlement decision at the time of migration and county-level economic development in recent years are controlled for. The results of the analysis show that high levels of population fractionalization have a strong and positive influence on economic development in the short, medium and long run. High levels of polarization, by contrast, undermine development. Despite a stronger effect on income levels in the first 30 years, we find these relationships to be extremely long lasting: counties with a more heterogeneous population composition over 130 years ago are significantly richer today, whereas counties that were strongly polarized at the time of the migration waves have endured persistent negative economic effects. [ABSTRACT FROM AUTHOR]

This paper investigates whether the costs of corruption are conditional on the extent of government intervention in the economy. We use data on corruption convictions and economic growth between 1975 and 2007 across the US states to test this hypothesis. Although no state approaches the level of government intervention found in many developing countries, we still find evidence for the 'weak' form of the grease-the-wheels hypothesis. While corruption is never good for growth, its harmful effects are smaller in states with more regulation. [ABSTRACT FROM AUTHOR]

The statutory patent length is 20 years in most countries. R&D-based growth models, however, often presume an infinite patent length. In this paper, finite-length patents are embedded in a non-scale R&D-based growth model, while allowing any patent's effective life to be terminated prematurely, subject to two idiosyncratic hazards from imitation and creative destruction. This gives rise to an autonomous system of mixed-type functional differential equations (FDEs) that had never been encountered in the growth literature. Its dynamics are driven by current, delayed and advanced states. We present a relaxation algorithm to solve these FDEs by solving a sequence of standard boundary value problems for systems of ordinary differential equations. We use this algorithm to simulate a calibrated U.S. economy's transitional dynamics by making discrete changes from the baseline 20 years patent length. We find that if transitional impacts are taken into account, the switch to the long-run optimal patent length can incur a welfare loss, albeit rather small. [ABSTRACT FROM AUTHOR]

This paper investigates the accuracy and heterogeneity of output growth and inflation forecasts during the current and the four preceding NBER-dated US recessions. We generate forecasts from six different models of the US economy and compare them to professional forecasts from the Federal Reserve's Greenbook and the Survey of Professional Forecasters (SPF). The model parameters and model forecasts are derived from historical data vintages so as to ensure comparability to historical forecasts by professionals. The mean model forecast comes surprisingly close to the mean SPF and Greenbook forecasts in terms of accuracy even though the models only make use of a small number of data series. Model forecasts compare particularly well to professional forecasts at a horizon of three to four quarters and during recoveries. The extent of forecast heterogeneity is similar for model and professional forecasts but varies substantially over time. Thus, forecast heterogeneity constitutes a potentially important source of economic fluctuations. While the particular reasons for diversity in professional forecasts are not observable, the diversity in model forecasts can be traced to different modeling assumptions, information sets and parameter estimates. [ABSTRACT FROM AUTHOR]

The race to economic superiority is increasingly occurring on a global scale. Competitors from different countries are employing new types of growth strategies in attempts to win that race. The United States cannot, therefore, continue to rely on outdated economic growth strategies, which include an inability to understand the complexity of the typical industrial technology and the synergies among tiers in high-tech supply chains. In this context, a detailed rationale is provided for maintaining a viable domestic technology-based manufacturing capability. In the United States, the still dominant neoclassical economic philosophy is at best ambivalent on the issue of whether a technology-based economy should attempt to remain competitive in manufacturing or let this sector continue to offshore in response to trends in comparative advantage, as revealed through shifts in relative prices. The paper argues that the neoclassical view is inaccurate and that a new innovation model is required to guide economic growth policy. Specifically, the paper provides (1) a rationale for why an advanced economy such as the United States needs a manufacturing sector; (2) examples of the process of deterioration of competitive positions for individual industries and, more important, entire high-tech supply chains; (3) an explanation of the inadequacy of current economic models for rationalizing needed new policy strategies; and (4) a new economic framework for determining both policy mechanisms and targets for those mechanisms, with emphasis on the systems nature of modern technologies and the consequent requirement for public–private innovation ecosystems to develop and deliver these technologies. Several targets are suggested for major policy mechanisms. [ABSTRACT FROM AUTHOR]

This paper studies contribution of capital deepening, technological progress and efficiency improvement to economic growth while focusing on cross-country data, and thus finds itself at the crossroads of growth and development accounting. We take a production frontier approach to growth accounting and choose DEA as the frontier estimation method. To explore the effects that windfall gains from natural resource use have on growth, output data are corrected for pure natural resource rents—part of GDP figures not earned by either labor or capital. Taking into account countries’ natural resources, we find that in the two decades from 1970 to 1990 the average contribution of technological catch-up to per worker output growth was, if anything, negative on the worldwide scale and this trend continued till the mid 1990ies. Analysis of efficiency estimates also shows a possible change over the period of 1970–1990 in the effect of natural resources on country’s performance [ABSTRACT FROM AUTHOR]

Thanks to numerous empirical research studies, a general consensus has been reached on the effects of labor unionization on the economy such as unemployment and economic growth (GDP). However, most of the previous research examines the effects of labor unionization on the U.S. and U.K. labor markets using multiple regression models. By applying different statistical tools (multivariate cointegration analysis and vector error correction model) to Korean data, this paper finds: (1) there is a long-run equilibrium linkage among unionization, unemployment and economic growth; and (2) unionization unidirectionally and significantly Granger-causes unemployment and economic growth. [ABSTRACT FROM AUTHOR]

Recently, various authors have examined the relationship between growth in government size and total economic growth. In each case, the authors permitted only a monotonic relationship. This paper examines the issue of a non-linear relationship between growth in government and overall growth in the economy. Government contributes to total economic output in various ways. The provision of Pigovian public goods enhances the productivity of the private sector inputs increasing total output. However, the public decision-making process can result in an inefficient quantity of public goods. The likelihood of this outcome increases with the size of government. Further negative effects are created by the revenue raising and spending mechanisms of government, and the increasing diversion of resources into 'unproductive' rent-seeking activities. The magnitude of these effects is likely to increase with the relative size of government. A simultaneous equations model that incorporates these different influences is developed and tested using time-series data for the United States. The estimates indicate that the non-linear model is the better for explaining the growth of total economic output. [ABSTRACT FROM AUTHOR]

Countries differ with regard to labour-market flexibility and 'animal spirits' of entrepreneurs. The paper aims at an analysis of the consequences of these differences in a climate favourable to economic growth. For that purpose a two-country model is presented in section 2. Although wealth variables are taken into account, expectations are assumed to be static. Despite this simplification the model cannot be solved analytically. The role of a dynamic region (USA) versus a more passive region (Europe) is therefore studied by working through numerical examples. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between Democratic presidential incumbency and economic growth in the United States in the long run. The analysis shows the Democrats have stimulated growth beyond trends when two conditions are met: first, when an incoming administration is formally committed to promoting growth and employment, and second, when that administration has at least two terms of office to implement those goals. The transmission mechanisms linking incumbency and growth are explored by means of a standard Keynesian IS-LM model, which is augmented by additional relevant variables. The transmissions process works via monetary policy, fiscal policy, and welfare expenditure. It also seems likely that changing expectations of consumers and investors stimulated the economy beyond trends for some Democratic administrations. [ABSTRACT FROM AUTHOR]

This paper introduces new data on state-level physical capital by sector and land in the farm sector for the states of the United States from 1840 to 2000. These data are incorporated into aggregate accounting exercises with the aim of comparing cross-state results to those found in cross-country samples. Our aggregate results agree closely with the cross-country literature: input accumulation accounts for most of output growth, between three-fifths and three-quarters, but variation in the growth of TFP accounts for about three-quarters of the variation in the growth rate of output per worker. In convergence accounting, convergence of log TFP accounts for about seventy percent of the observed convergence in log output per worker. [ABSTRACT FROM AUTHOR]

Although a considerable number of studies have examined the effectiveness of growth management programs in curbing sprawl and increasing aggregate densities, less attention has been paid to understanding how these noted density improvements are realized. In this paper, we assess the mechanisms that underlie changes in aggregate population densities and empirically examine detailed density changes under various growth management regimes in the US. Our county-level statistical analysis using recent US Census products and land use change data sets, finds that: (a) states with proactive growth management programs do tend to experience relative density gains, but not in jurisdictions with restrictive local land use regulations and (b) the marginal density gains appear to be attributable in large part to smaller housing vacancy rates and housing price escalations. Not surprisingly, our findings suggest that local structures are critical for achieving desired outcomes. Given the critical role of local action, the realization of compact development requires a tightly woven and integrated policy that not only makes logical sense at state levels, but can be followed and implemented at the local level. [ABSTRACT FROM AUTHOR]

We introduce a new time series measure of the extent of federal regulation in the U.S. and use it to investigate the relationship between federal regulation and macroeconomic performance. We find that regulation has statistically and economically significant effects on aggregate output and the factors that produce it-total factor productivity (TFP), physical capital, and labor. Regulation has caused substantial reductions in the growth rates of both output and TFP and has had effects on the trends in capital and labor that vary over time in both sign and magnitude. Regulation also affects deviations about the trends in output and its factors of production, and the effects differ across dependent variables. Regulation changes the way output is produced by changing the mix of inputs. Changes in regulation offer a straightforward explanation for the productivity slowdown of the 1970s. Qualitatively and quantitatively, our results agree with those obtained from cross-section and panel measures of regulation using cross-country data. [ABSTRACT FROM AUTHOR]

This paper investigates employment growth in small firms funded by the U.S. Small Business Innovation Research (SBIR) program. Using data collected by the National Research Council for each of five federal agencies, our analysis shows that on average over two-fifths of all projects retained zero employees after completion and over one-third retained only one or two employees. Thus, on average, the direct impact of SBIR funded projects on employment is small, especially when compared to the mean number of employees in the firms. However, there are substantial cross-project differences in the number of retained employees that are explained by differences in the firms and their SBIR projects. We find across funding agencies that projects with intellectual property-patents, copyrights, trademarks, or publications-retained more employees after completion of the project. Also, we find that the public funding of research by the SBIR program is more likely to stimulate employment when the government created a market for the products, processes, or services developed by the research projects. [ABSTRACT FROM AUTHOR]

Universities play a unique role in society, providing a community of experimentation and innovation. Even so, leaders around the world have had to push for university primacy to retain competitiveness in the global economy. This paper examines efforts taken by universities in the United States to evaluate their contribution to economic development. An emerging role for universities is one of active neighborhood involvement, in which they are engaged in projects with local communities. These projects include providing assistance to local firms and policy advice to state and local government, and getting involved in community outreach. In this role and in an unprecedented manner, universities are engaging on a wide range of topics with local communities, using these communities as labs to test new ideas and find better ways to achieve social and economic goals. This is precisely why it is important to consider the larger role of universities' in economic and social development. [ABSTRACT FROM AUTHOR]

The question of high welfare re-entry rates has attracted great attention from economists and policymakers. Using a very rich administrative data set for the minimum income program of the Madrid Government (over 50,000 spells), this paper aims to broach various questions arising from the issue of welfare re-entry. We try to identify what factors determine observed differences in the durations of the first off-welfare spell. We analyze the combined effects of the length and type of exit of the first spell, unemployment, and sociodemographic characteristics. The experience of the first spell and, to a lesser extent, employability can contribute toward lengthening the time spent outside the program. Our results also show that off-welfare spells of households leaving the program in periods of low economic growth will be longer than those that do so during economic expansions. With the exception of unemployment effects, our estimates yield very similar results to those obtained in the U.S. studies, suggesting that U.S. welfare policies and analyses are not entirely irrelevant for European discussions of welfare policies. [ABSTRACT FROM AUTHOR]

This paper presents a quantitative theory of development that highlights three mechanisms that relate schooling, fertility, and growth. First, we point out that in the early stages of development, fertility and schooling may rise together as the schooling of younger children increases their relative contribution to family income when they turn working age. Second, the model contains a supply-side theory of schooling that generates a rise in schooling independent of technological change. Third, we introduce a direct negative effect of industrialization on fertility that does not operate through human capital and the quantity-quality tradeoff. An initial quantitative assessment of the theoretical mechanisms is conducted by calibrating and applying the model to United States history from 1800 to 2000. We find that the demise in family production is an important factor reducing fertility in the 19th century and schooling of older children is dominant factor reducing fertility in the 20th century. The same model is applied to England from 1740 to 1940, where we offer two complimentary explanations for the rise in fertility from 1740 to 1820. The first is based on the rapid expansion in the cottage industry and the second on the increased relative productivity of children. We also find that the subsequent fall in fertility from 1820 to 1940 cannot be explained without introducing child labor/compulsory schooling laws. [ABSTRACT FROM AUTHOR]

This paper examines the effects of trade liberalization and the risks associated with participation in the global trading system on women’s integration into national labor markets. Using data from 1970 to 1995, I identify two global determinants of the female share of national labor markets: trade openness and transnational corporate penetration. Several local predictors of women’s labor force participation are also identified. While a cross-sectional analysis indicates that women have been pulled into national labor markets as a result of neo-liberal economic reforms, more dynamic models show that these same forces can also lead to a preference for male, rather than female labor. Moreover, the analyses specify that the effects of trade openness and trade risk on female labor force participation are determined by position in the world-system and region. These results illustrate that arguments about the relationship between globalization and the feminization of the labor force, are too simplistic and neglect to account for the diverse consequences of global economic expansion on gender relations. [ABSTRACT FROM AUTHOR]

This paper examines the recent history of State-level policies in the United States for knowledge-based economic development, and identifies an emerging model based on technology creation. This new model goes beyond traditional investments in technology transfer and prioritizes cutting-edge scientific research in economically relevant fields. As research-intensive universities are indispensable for technology creation, these policies have yielded substantial new investments in university science. [ABSTRACT FROM AUTHOR]

While most cross-country studies find a negative relationship between income inequality and economic growth, studies that use panel data suggest the presence of a positive relationship between inequality and growth. This paper uses a cross-state panel for the United States to assess the relationship between inequality and growth. Using both standard fixed effects and GMM estimations, this paper does not find evidence of a positive relationship between inequality and growth but finds some evidence in support of a negative relationship between inequality and growth. The paper, however, shows that the relationship between inequality and growth is not robust and that small differences in the method used to measure inequality can result in large differences in the estimated relationship between inequality and growth. [ABSTRACT FROM AUTHOR]

This paper is a twenty-five year retrospective on the development of environmental consciousness in the US The Clean Air Act is taken as proxy for companion measures in water and other areas of the environment, and the emphasis on "'efficiency" and "market compatibility" is noted with a mixture of caution and hope. The work of an eminent pragmatic ethicist, Ado Leopard, is re-visited. From the pages of A Sand County Almanac, his notion that right and wrong, good and bad, be assessed in terms of the tendency to produce or preserve "the integrity, beauty, and stability of the biotic community" is explicitly adopted. Leopold's ethical consciousness raises a question: what reasons do we have to believe that an efficient, booming economy can be made compatible with a finite natural system? Are there boundaries that the economy must respect, or can we "out run" those limits with our technology and expertise? [ABSTRACT FROM AUTHOR]

Abstract. This paper examines the influences on voting by members of the House of Representatives on the Carter Administration's welfare reform legislation. The analysis finds some support for the hypothesis that voting by national legislators responded to the potential mobility of welfare recipients from low to high benefit states. Defining the public interest as promoting economic growth and the special interest as increasing redistribution, the results also provide evidence in support of the Stigler hypothesis that politically secure legislators are better able to vote the public, as opposed to the special, interest. [ABSTRACT FROM AUTHOR]

Purpose: This paper seeks to pilot test a novel way to collect freight and service activity data and analyze the collected data in the metropolitan area of Medellin, Colombia.Methods: This research collects data using a multi-layer and multi-actor approach that includes surveys to receivers, suppliers, carriers, and truck drivers. The data are used by the authors to describe the overall freight patterns in the area of study and to show lessons learned.Results: The data collection resulted in 2947 establishments (4.4% of the total establishments in the city), a cordon survey of 2950 commercial vehicles (17% of the total vehicle volume) accessing the urban area, and carrier interviews to ten companies and 130 truck drivers. The results indicate that a total of 33,274 metric tons/day enter the study area, 35,240 tons/day leave the area; while 7000 tons/day are distributed in the study area. In terms of freight trips, 6600 trips/day enter the study zone and 6600 trips/day leave it.Conclusions: The data collection effort enabled the analyses of freight generation patterns. The freight surveys used in the study complement each other, and provided a good depiction of the freight movements in urban areas. It was found that in the Medellin Metropolitan Area, freight-intensive sector establishments generates, on average, significantly more cargo (freight attraction plus production) than the service-intensive sectors. The analyses of the surveys allow the decision makers to understand the nature of the cargo and the generation patterns in different type of establishments. This characterization of the freight patterns is vital for the forecasting of the behavior of the cargo and it is the main input to perform freight demand modeling for city planning, especially for developing countries, where there are too many budget constraints. [ABSTRACT FROM AUTHOR]

This paper examines the “connection”between higher education and economic development in Massachusetts, a state whose renowned academic institutions have fueled the rise of a premier high technology industrial district. But in the aftermath to the abrupt demise of the “Massachusetts Miracle”, the state higher education system sought to develop a new mandate for public service in the 90s keyed to upgrading the state‘s industrial base and coordinating with labor market needs. These growing involvements in manifestly vocational endeavors seem to reflect a major shift in the models that articulate the higher education-economic development “connection” in Massachusetts. Thus, it appears that the elite model of the “world-class” research university sparking numerous industry spin-offs has been joined by newer diffusion-oriented models of academic outreach that extend out from the community colleges into the workplace and even into the K-12 schools. [ABSTRACT FROM AUTHOR]

The article summarizes findings on the nature of long swings or Kuznets cycles in the growth of U.S. population and labor force and on their apparent cause-effect relations in the period prior to World War I to similar movements in the rate of economic development. Many of the findings for population and labor force are based on the decennial population censuses of 1870 to 1950. The timing of the censuses during this period occurred sufficiently close to turning points in the demographic swings to permit use of this valuable detailed source. The growth of both population and labor force has been characterized by roughly synchronous long swings since at least 1870 and probably since early in the nineteenth century. The swings were typically of substantial amplitude and averaged around 15-25 years in duration. The color-nativity components of population and labor force reflect the predominant influence that immigration has typically played in the swings. Historically the swings are most apparent in the growth of the foreign born population and labor force.

Presents an abstract of the paper `Exports Contribution to Economic Development: Evidence from the 50 States,' which was presented by Merrimack College researcher Evangelos N. Charos et al at the 32nd International Atlantic Economic Conference held October 3 to 6, 1991 in Washington, D.C.

The 2018 edition of the United Nations World Water Development Report stated that nearly 6 billion peoples will suffer from clean water scarcity by 2050. This is the result of increasing demand for water, reduction of water resources, and increasing pollution of water, driven by dramatic population and economic growth. It is suggested that this number may be an underestimation, and scarcity of clean water by 2050 may be worse as the effects of the three drivers of water scarcity, as well as of unequal growth, accessibility and needs, are underrated. While the report promotes the spontaneous adoption of nature-based-solutions within an unconstrained population and economic expansion, there is an urgent need to regulate demography and economy, while enforcing clear rules to limit pollution, preserve aquifers and save water, equally applying everywhere. The aim of this paper is to highlight the inter-linkage in between population and economic growth and water demand, resources and pollution, that ultimately drive water scarcity, and the relevance of these aspects in local, rather than global, perspective, with a view to stimulating debate. [ABSTRACT FROM AUTHOR]

We analyze the potential role of a public message as a coordination mechanism between traders in an experimental asset market that exhibits departures from fundamental values. Dividends are the same for all players except for an unknown ex-ante. During the treatment sessions, a message that does not offer new information is sent to all traders at the same predetermined time. We compare deviations from fundamental prices in sessions with and without a message. We find no statistical evidence that a public message without informational content is able to bring prices back to fundamental values. [ABSTRACT FROM AUTHOR]

Since 1963, changes in the family composition of the US labor force explain more than half of the variability in US total factor productivity growth. Using the Current Population Survey Annual Social and Economic Supplement, we document the rise of two (and single) working-parent families in the USA. We augment a standard growth-accounting equation to differentiate between parental and nonparental labor inputs and find that accounting for the parental composition of the labor force explains roughly 50 % of total factor productivity growth, the productivity slowdown of the 1970s, and the productivity rise of the 1990s. The parental composition of the workforce also helps to explain labor productivity differences across US states while controlling for differences in the age and gender profile of workers across states does not. [ABSTRACT FROM AUTHOR]

Abstract: This paper hypothesized that democratic nations, as characterized by Polity IV Project regime scores, spend more on health care than autocratic nations and that the association reported here is independent of other demographic, health system or economic characteristics of nations. WHO Global Observatory data on 159 nations with roughly 98% of the world’s population were examined. Regime scores had significant, direct and independent associations with each of four measures of health care expenditure. For every unit increment in a nation’s regime score toward a more democratic authority structure of governance, we estimated significant (p <0.05) increments in the percent of GDP expended on health care (+0.14%), percent of general government expenditures targeted to health care (+0.25%), total per capita expenditures on health (+34.4Int$) and per capita general government expenditures (+22.4Int$), while controlling for a population’s age distribution, life expectancy, health care workforce and system effectiveness and gross national income. Moreover, these relationships were found to persist across socio-economic development levels. The finding that practices of health care expenditure and authority structures of government co-vary is instructive about the politics of health and the challenges of advancing global health objectives. [Copyright &y& Elsevier]

Recently there has been increased interest in developing methods for measuring poverty in a way that takes into account the lifetime experience of individuals. We analyze some specific proposals that take the so-called spells approach and consider how they differ in the manner in which they address issues of lifetime poverty, most notably the measurement of chronic poverty. Comparing these specific measures by applying them to a US panel data set, we provide important insights for further research in conceptualizing and measuring lifetime poverty. [ABSTRACT FROM AUTHOR]

We use US county level data from 1970 to 1998 to explore the relationship between economic growth and government employment at three levels: federal, state and local. Increases in federal, state and local government employments are all negatively related to economic growth. We find no evidence that government is more efficient at lower levels. While we cannot separate out the productive and redistributive services of government, we document that the county-level income distribution became slightly more unequal from 1970 to 1998. We conclude that a release of government-employed labor inputs to the private sector would be growth-enhancing. [ABSTRACT FROM AUTHOR]

Scully (Public Choice 115: 299–312, ) claims that for the United States in 1960–1990, the growth-maximizing size of the state was about 19% of GDP. However if an error in the model specification is corrected and if 2001 vintage data is used (instead of 1996 vintage data), estimates of the growth-maximizing size of the state range between 9% and 29% of GDP. Further, the method spuriously identifies a ‘growth maximizing tax rate’ even if no relationship exists between growth and the size of the state. The model cannot address reliably the question it attempts to answer. [ABSTRACT FROM AUTHOR]

This article reports that economic integration has become increasingly important in recent times as rapid growth of foreign direct investment and deepened regional integration scheme. It is opined that the last 15 years have brought two major disappointments for the European economies. The first has been in terms of economic performance, and in particular, growth, productivity and employment. Throughout the post World War II era economic performance in Europe had been converging towards its counterpart on the other side of the Atlantic. But starting in 1990, economic performance in the U.S. and Europe seemed to be on divergent trajectories.

In this paper, we develop a model of technology adoption and economic growth in which households optimally obtain either a concept-based, "general" education or a skill-specific, "vocational" education. General education is costly to obtain, but enables workers to operate new production technologies. Firms weigh the cost of adopting and operating new technologies against increased profits and optimally choose the level of adoption. We show that an economy whose policies favor vocational education will grow slower in equilibrium than one that favors general education. More importantly, the gap between their growth rates will increase with the growth rate of available technology. By characterizing the optimal Ramsey education policy we also demonstrate that the optimal subsidy for general education increases with the growth rate of available technology. Our theory suggests that European education policies that favored specialized, vocational education might have worked well, both in terms of growth rates and welfare, during the 1960s and 1970s when available technologies changed slowly. However, in the information age of the 1980s and 1990s when new technologies emerged at a more rapid pace, they might have contributed to an increased growth gap relative to the United States. [ABSTRACT FROM AUTHOR]

The ‘Internet Revolution’ induced an unbalanced perspective on future economic growth strategies. Because information technology (IT) largely constitutes an infrastructure upon which other economic activity is based, its economic role is to facilitate the productivity of investment in a wide range of products and services that meet final demand. Other economies around the world can and are investing in the same infrastructure, so the efficiency advantages now being realized by the U.S. economy will be fleeting unless U.S. R&D efforts produce a new and broad range of innovative products and services that take advantage of this infrastructure. A deep and diverse technology-based manufacturing sector must be a core objective of a national R&D strategy. United States' manufacturing contributes $1.5 trillion to GDP, employs 20 million workers, accounts for more than 70% of industrial R&D, and constitutes the main source of technology for the larger service sector. While knowledge-based services are the largest source of economic growth for the U.S. economy, their long-term performance is highly dependent on synergies with a domestic manufacturing sector. These synergies will be even more important in the future because services are increasingly exposed to foreign competition. Knowledge-based services can be supplied from anywhere in the world—as long as these foreign sources can rapidly access and assimilate the necessary technology components. This caveat is the critical point for economic growth policy. Considerable research supports the argument that hardware and software components are most efficiently supplied to services by a manufacturing sector that is geographically close and institutionally integrated with the service applications. Policy debates have raged for decades over the nature and magnitude of underinvestment in manufacturing R&D. The need to resolve the relevant policy issues has increased, as industry is funding less of the long-term, high-risk research that creates the technology platforms supporting new industries and future economic growth. Unfortunately, only about a third of U.S. manufacturing is high-tech by conventional definitions. Some of the remaining industries develop technologies internally, but most purchase a large proportion of their technology from the high-tech sector. Because a technology acquisition strategy can be more easily imitated by foreign competitors, traditional industries are much more susceptible to exchange rate variations, global economic cycles, and secular shifts in foreign competition. Thus, with global technological capabilities relentlessly increasing, the long-term prospects for the moderate and low R&D-intensive portions of U.S. manufacturing are not good. This paper presents a conceptual framework and available data as inputs for the analysis of Federal R&D investment strategies. Such strategies must recognize the full range of public and private technology assets constituting a national innovation system. A developed and efficient innovation system has characteristics making imitation by foreign competitors difficult and thereby enables sustained competitive advantage. [ABSTRACT FROM AUTHOR]

This paper proposes a novel non-parametric methodology for comparing total factor productivity (TFP) across countries and over time. It develops the principle of revealed superiority along the lines of Samuelson's principle of revealed preferences. Specifically, we compare the aggregate actual profits in each country to the hypothetical profits it would have earned if, facing its own prices, it had employed another country's inputs and produced its output. We show that our procedure reveals the “true” TFP ranking under relatively mild assumptions. We apply our method by ranking a panel of the 25 richest economies relative to one another and over time and find that the United States enjoys the highest TFP whereas Singapore has the lowest. [ABSTRACT FROM AUTHOR]

This paper estimates dynamic effects of public capital on output per capita. Based on an open economy growth model, I derive a version of the income convergence equation augmented with public capital. This equation is estimated using panel data of United States and Japanese regions. Sensible results are obtained when public capital is disaggregated into components. In both countries, the infrastructure component of public capital turns out to have significantly positive effects. The implied elasticity of output with respect to infrastructure is somewhere around 0.1 to 0.15. This suggests a modest contribution of infrastructure to postwar growth of the two countries. [ABSTRACT FROM AUTHOR]

Reports on the economic growth in the United States. Rise of the productivity residual during the twentieth century; Change in the bias of technological and organizational progress; Rate of return on investments.

Ethnic enterprises are growing rapidly in urban areas across the United States. Anecdotal evidence from around the country reports many success stories of how ethnic businesses transform communities; however, researchers have not provided a systematic review of the role of ethnic businesses in community developing. In practice, ethnic businesses have not been formally incorporated in local planning and development process. This article provides a systematic review of the multi-faceted ways ethnic businesses contribute to community building and neighborhood development. In addition to surveying the current literature, we also chose three communities for a focused review: Buford Highway in Atlanta, Monterey Park in Los Angeles, and Sunset Park in New York. A framework is developed to evaluate the economic, physical, social/cultural, and political effects that ethnic businesses exert on communities. We find that ethnic businesses can serve local economic interests and community-level cohesion and accrue economic, social, physical, and political benefits to their respective communities. These include serving the unmet market needs of certain neighborhoods and households, creating job opportunities and generating revenues, revitalizing and fueling the commercial development of abandoned communities, organizing and promoting social life and cultural diversity, as well as contributing their collective interest and voice in local communities. We argue that ethnic businesses should be better incorporated into urban policies in community economic development. [ABSTRACT FROM AUTHOR]

The term 'currency manipulator' has been used by the United States to describe the monetary practices of nations such as China and Japan and by Germany to describe U.S. monetary policy. This charge transcends monetary regimes and includes both traditional monetary policy and that in the service of industrial or developmental strategies that center on export led growth. While the latter clearly has a negative effect on employment and economic growth in the rest of the world, the increased international mobility of capital, combined with the wide-spread use of flexible exchange rates, has led to the same external effects from the normal conduct of monetary policy. Acknowledging and dealing with these negative external effects will lead to improved and less tension-filled international economic relations than calling nations 'currency manipulators.'. [ABSTRACT FROM AUTHOR]

This article reveals the emergence of the idea of development in the sociological study of Latin America in the United States as a specific product of history. We show how in the 1960s, it was the result of interaction between the economic, political, military, and scientific fields generated by the mobilization of resources based on their respective rules. We criticize the idea that sociology had clearly-defined goals during this period. Our research demonstrates, for instance, how the research conducted on Latin America during that period was rooted in 'topical tropism'. Our investigation is based on the analysis of empirical data including institutional information, journal articles and historical archives. [ABSTRACT FROM AUTHOR]

Using data from U.S. states, we find a positive relationship between trust and growth. According to our results, a 10 percentage point increase in trust increases the growth rate of GDP by 0.5 percentage points and the growth rate of manufacturing employment by 1.3 percentage points over a five-year period. Our results are robust to the endogeneity between trust and growth. [ABSTRACT FROM AUTHOR]

The integration of ideas, methods, and data from diverse disciplines has been a transformative force in science and higher education, attracting policy interventions, program innovations, financial resources, and talented people. Much energy has been invested in producing a new generation of scientists trained to work fluidly across disciplines, sectors, and research problems, yet the success of such investments has been difficult to measure. Using the Integrative Graduate Education and Research Training (IGERT) program of the U.S. National Science Foundation as a strategic research site, we conducted an experiment to determine whether and how the process and products of research of IGERT-trained scientists differ from those of scientists trained in disciplinary graduate programs. Among scientists in the early years of graduate study we found substantial and consistent differences suggesting that interdisciplinary training improved the quality and process of research, but this pattern was equally strongly reversed among students in the latter years of graduate study. Using systematic observation and other data we suggest why this might be so, then discuss the implications of these results for the design and conduct of graduate education and research. [ABSTRACT FROM AUTHOR]

Seven recommendations are offered for the Obama Administration to ensure that the economy is on a robust growth path over the next decade. These recommendations are intended as first steps towards building the innovation-based public-private partnerships needed to drive economic growth and prosperity. [ABSTRACT FROM AUTHOR]

The “justice of markets” is intricately connected to the treatment of the poor and the disadvantaged in market economies. The increased interest of multinational corporations in low-income market segments affords, on one hand, the opportunity for a more inclusive capitalism, and on the other, the threat of greater exploitation of poor and disadvantaged consumers. This article traces the contributions of Catholic Social Teaching and its basic principles toward providing insight into what constitutes “justice” in such “marketing to the impoverished” situations. [ABSTRACT FROM AUTHOR]