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Purpose – God promised pious individuals who obey to His commandments, to increase their economic well-being. Although it is difficult to demonstrate with figures in hand this causality relationship, Muslims must believe in its existence and robustness at both the individual and collective levels, as it is argued in Qur'an and the Prophetic Narration. We aim in this paper to model this positive relationship between Islamic work ethics and economic growth and prove theoretically its existence. Design/methodology/approach – We develop an endogenous growth model very close technically to Lucas–Uzawa model (1988) in which the human capital defined as the individual's skill level acquired through formal education and learning by doing is replaced by ethical capital (piety). Findings – The model proves theoretically that Islamic ethics are a key engine of endogenous economic growth and that the underdevelopment of Muslim populations is due to their low ethical capital (lack of piety). Practical implications – The study recommends some policies such as providing formal religious education at all educational levels (elementary, secondary and higher levels) and promoting ethical values such as piety, sincerity, transparency, etc., through media and cultural institutions. Also, managers could provide courses and training to their workers to teach them Islamic work ethics. Originality/value – This paper is the first to mathematically model Islamic work ethics as endogenous phenomena in socioeconomic systems and study theoretically their contributions to economic growth.

This study is aimed to empirically prove the hypothesis that currently the influence of workforce aging on the productivity of economy is determined by factors characterizing the level of territory development. The scientific and practical significance of this study is the contribution of the authors to a scientifically based empirical investigation of the influence of workforce aging (due to raising the retirement age) on the productivity of economy in the countries of the modern world. Methods of the empirical analysis. The theoretical background and methodology of this study are based on the concept of specific human capital by G. Becker and the conception of endogenous growth with its emphasis on technology development. The authors use several methods of quantitative data analysis: correlation analysis, regression analysis and cluster analysis in order to identify not only correlational parallelism, but also causal relationships between the variables included in the proof of the research hypothesis. Sources of empirical information. The authors used, whenever possible, the latest statistics from the World Health Organization, Trading Economics and PwC Global, as well as data from the report on the Global Talent Competitiveness Index for 63 countries. These countries represent different continents and have different levels of socio-economic development. The results of the conducted empirical analysis show that in the countries of the modern world, technological readiness, coupled with a high level of lifelong learning, are the catalysts that provide a stimulating effect of raising the retirement age (objectively leading to workforce aging) on the productivity of economy. The authors also concluded that raising the retirement age in the country, without considering the above factors, does not contribute to the effective use of the economic potential of older workers. Цель данного исследования – эмпирическое подтверждение гипотезы о том, что в современном мире влияние старения рабочей силы на производительность экономики детерминируется факторами, характеризующими уровень развития территории. Научное и практическое значение данного исследования состоит во вкладе авторов в научно обоснованное эмпирическое изучение влияния старения рабочей силы, обусловленного повышением пенсионного возраста, на производительность экономики в странах современного мира. Методика эмпирического анализа. Теоретические предпосылки и методология данного исследования опираются на концепцию специфического человеческого капитала Г. Беккера и концепции эндогенного роста с её акцентом на развитии технологий. Авторы используют несколько методов количественного анализа данных: корреляционный анализ, регрессионный анализ и кластерный анализ – с целью выявления не только корреляционного параллелизма, но и причинно-следственных связей между переменными, включёнными в доказательство гипотезы исследования. Источники эмпирической информации. Авторы использовали по возможности новейшую статистику Всемирной организации здраво- охранения и других международных организаций, а также данные отчёта об Индексе глобальной конкурентоспособности по таланту для 63 стран мира, представляющим разные континенты и имеющим разный уровень социально-экономического развития. Результаты проведённого эмпирического анализа показывают, что в странах современного мира технологическая готовность вкупе с высоким уровнем непрерывного обучения являются теми причинами-катализаторами, которые обеспечивают стимулирующее влияние повышения пенсионного возраста (объективно приводящего к старению рабочей силы) на производительность экономики. Авторы также при- шли к выводу о том, что повышение пенсионного возраста в стране без учёта вышеупомянутых факторов не способствует эффективному использованию экономического потенциала работников старшего возраста.

This paper argues that an entrepreneurial state can inadvertently crowd out entrepreneurship. Using the context provided by Singapore, the paper finds that coordinated policies that prioritize and target capital, knowledge, and human capital accumulation in particular industries, sectors, technologies, and firms have created a formidable societal knowledge filter, which in turn can impede endogenous entrepreneurial activity. By serving as the entrepreneur, Singapore's entrepreneurial state imposes its vision by assuming the core entrepreneurial values and traits of opportunity recognition, discovery, and action. The entrepreneurial state, at least in the case of Singapore, retards the transition to an entrepreneurial society, which, paradoxically, is the vision of Singapore's entrepreneurial state. Plain English Summary: States increasingly engage in entrepreneurial activities. This paper explains how the policies and activities of such entrepreneurial states may inadvertently create barriers to a more inclusive entrepreneurial society where entrepreneurship is embraced by diverse citizens. Drawing on the case of Singapore, this paper shows that it is not the individual state activities in the entrepreneurial sphere, but the mix of activities, which starves entrepreneurship. The article focuses on state activities in the areas of capital, knowledge, and human capital, and shows how such activities jointly have reduced the scope of private entrepreneurial endeavor. In doing so, the article provides knowledge on the relationship between entrepreneurial states and an inclusive entrepreneurial society. It draws attention to the effects of policy configurations and action on entrepreneurship. [ABSTRACT FROM AUTHOR]

In this paper, we argue that macroeconomic uncertainty shocks cause a persistent decline in economic activity, investment in R&D, and total factor productivity. After providing empirical evidence, we build a DSGE model with sticky prices and endogenous growth through investment in R&D. In this framework, uncertainty shocks lead to a short-term fall in demand because of precautionary savings and rising markups. The reduction in the utilised aggregate stock of R&D determines a fall in productivity, which causes a long-term reduction in the main macroeconomic aggregates. When households feature Epstein–Zin preferences, they become averse to these long-term risks affecting their consumption process (long-run risk channel), which severely exacerbates the precautionary savings motive and the overall adverse effects of uncertainty shocks. [ABSTRACT FROM AUTHOR]

In models of financial frictions, stock market booms tend to follow adverse liquidity shocks. This finding is clearly at odds with the data. We demonstrate that this counterfactual result is specific to real business cycle models with exogenous growth. Once we allow for both endogenous productivity and growth, this puzzling price dynamic easily disappears. Intuitively, the gloomy economic‐growth outlook following an adverse liquidity shock generates a predictable and negative long‐run component in dividend growth, leading to the collapse of equity prices. [ABSTRACT FROM AUTHOR]

Bénabou [(2002) Econometrica 70, 481–517.] demonstrated how progressive redistribution mitigates unequal opportunity for education to promote growth. We ask how effective that policy is when it affects the average quality of education. So, we add a learning externality in his model of human capital accumulation. It captures how knowledge diffusion through global channels—such as a national educational curriculum—influences children's learning outcomes and, hence, growth. Whether inequality is a curse or a blessing for economic growth depends on how efficiently an economy designs these channels and to what extent they influence children's education. The greater this efficiency, the lower is the optimal progressiveness of income redistribution for maximizing the long-run output growth rate. Interestingly, if poorly designed global channels exert greater influence in education, the optimal progressivity may increase. Our quantitative analysis reveals new implications for redistributive policies, including a surprisingly low optimal progressivity (approximately 6–7%) for the calibrated US economy. [ABSTRACT FROM AUTHOR]

We report sustained uplift throughout Volcan Sangay's most recent period of eruption (2019–22), moderated only by transient excursions during some of its largest explosions. Volcan Sangay (Amazonia, Ecuador), has been erupting since 2019, impacting both local communities and distant cities with ash fall and lahars. We analyzed ascending and descending Sentinel-1 radar imagery, constructing a robust network of interferograms spanning this eruptive period to measure relative ground displacements across the volcano. Our time series reveals a consistent uplift pattern (∼68 mm/yr) on the western and northern flanks of the volcano, which we attribute to volume increases in a body of magma located within the volcano's edifice beneath its western flank. This source appears to be vertically extensive, and is best fit by a quadrangular magma pathway, dipping towards the west and increasing in volume by 1.1 × 106 m3 between 2019 and 2022. We additionally identify non-magmatic deformation, including subsidence of fresh deposits and downslope displacement (∼50 mm/year) in the southeastern sector of the volcano. Co-eruptive uplift at Sangay is a rare observation of endogenous growth during an eruption and indicates that stratovolcano edifice stability is sensitive to both magma flux into the edifice and shallow controls on eruption rate. • Sangay uplifted steadily between 2019 and 2022, with major explosions accompanied by transient subsidence. • An area of ∼5 km2 of fresh deposits on the eastern flank is moving downslope at a rate of ∼50 mm/yr. • Co-eruptive uplift 2019–2022 is consistent with volume increase of 1.1 × 106 m3 in a curved pathway through the edifice. • The ratio of estimated intruded volumes to erupted volumes in 2019–2022 was 0.5–10%. [ABSTRACT FROM AUTHOR]

Endogenous growth models exhibit long-run risks, which are considered a potential explanation of the equity premium puzzle. Unlike previous literature, we use a closed-form solution of a simplified model to make the following contributions. First, we derive a set of conditions for a positive and large equity premium. Second, we match a key driver of endogenous growth, the R&D spending-to-GDP ratio. Third, we include a novel discussion on the role of patent obsolescence. Given that the literature concerns the accuracy of loglinear-lognormal solutions, we solve our model numerically with third-order perturbation. We find additional risk correction due to higher-order terms. • We study asset prices in a simplified endogenous growth model. • The closed-form solution shows the conditions for a positive and high equity premium. • We calibrate the model to match R&D spending-to-GDP ratio in US data. • A small rise in R&D spending per GDP has large effects on growth and risk premia. • Patent obsolescence raises precautionary savings and keep risk-free rate low. [ABSTRACT FROM AUTHOR]

Bu çalışmada, Türkiye ekonomisinin dinamiklerinin 1990-2020 dönemleri arasında izlenmesine olanak sağlayacak bir içsel büyüme modeli tahminlemek ve kademesel yapıyı ortaya çıkarmak amaçlanmaktadır. Araştırmaya kapsamındaki makroekonomik göstergelerin doğrusallık davranışları Harvey, Leybourne ve Xiao (2008) testiyle; durağanlık yapıları ise ADF (1979, 1981), Lee ve Strazicich (2004) ve Hepsağ (2019) birim kök testleri ve KPSS (1992) durağanlık testi aracılığıyla ayrıntılı bir şekilde araştırılmıştır. Tahminlenen makroekonometrik modelin teorik problemlerinin üstesinden gelmek amacıyla ilk aşamada RALS tekniğine başvurulmuştur. Bu modelden sağlanan bütünsel çıkarımlar Ar-Ge harcamaları ve ihracat hacminin Kişi Başı GSYİH üzerinde arttırıcı etkisi olduğu yönündedir. Daha ayrıntılı ve kademeli bir bakış için ise kantil regresyon yaklaşımından faydalanılmış ve böylelikle içsel büyüme değişkenlerinin, Kişi Başı GSYİH’nin farklı kantilleri üzerindeki etkisini gözlemlemeye olanak sağlanmıştır. Bulgular, Ar-Ge harcamalarının, düşük kantillerde Kişi Başı GSYİH değerleri üzerindeki etkisinin giderek arttığını ancak yüksek kantiller üzerinde istatistiki bir anlamlılığı olmadığını göstermektedir. İhracat hacminin ise Ar-Ge ile tam tersi bir etki alanı olduğu, Kişi Başı GSYİH’nin düşük kantilleri üzerinde istatistiki bir anlamlılığı bulunmazken yüksek kantiller üzerinde arttırıcı bir etkisi olduğu kaydedilmiştir. Böylelikle Ar-Ge harcamalarının, Kişi Başı GSYİH’ye ivme kazandırması beklenirken yüksek kantillere geçişte hızlandırma etkisini ihracat yüklenmektedir. Ampirik bulgular Ar-Ge'ye dayalı içsel büyüme ve ihracattan beslenen büyüme teorisinin geçerliliğine ilişkin kanıtlar sunmaktadır.

Knowledge creation has been a pivotal ingredient of endogenous growth theory to understand differences in standards of living across countries. Yet, the identification of key drivers explaining cross-country differences in knowledge creation still remains a topic of central interest in this research field. In this paper, I provide a framework to hypothesize and empirically test the persistent effects of novelty-seeking traits on cross-country differences in scientific knowledge creation. The results suggest a positive and statistically significant relationship between both outcomes that is consistent with the hypothesis that the prevalence of novelty-seeking traits in society facilitates scientific knowledge creation through beneficial human behaviors related to risk-taking and explorative behavior. The empirical findings remain qualitatively unaffected when controlling for additional historical, biogeographical, and socioeconomic factors that appear as additional important determinants in the creation of scientific knowledge in society. [ABSTRACT FROM AUTHOR]

• Delays in the process from investment in innovation to productivity gains can explain cyclicality within an economic system. • The type of the economic fluctuations greatly depends on alternative formulations for the economic system. • The results indicate that it is difficult to measure the influence of innovation on the economic system and their role in the business cycle. While explaining economic growth is still an open question in economics, it is widely recognized that innovation plays a leading role in its promotion. However, innovative activity involves both time delays and accumulation, and both are topics that neoclassical economics do not put an emphasis upon. If one introduces these features into a growth model and allows for imbalances between the demand and supply side of the economy, fluctuations are the result. This means that by introducing these mechanisms one can argue that investing in innovation can be both a driver for long-term growth as well as a reason for mid-term fluctuations. Hence, the growth dynamics arising from innovative activities have a more complicated pattern than neoclassical growth models can usually account for. [ABSTRACT FROM AUTHOR]

In a standard overlapping generations model, we show how the health effects of pollution impact the balanced-growth path (BGP) and the transition dynamics of the economy. The key driver is the differential between physical and human capital accumulation. The differential occurs because pollution alters the incentives to save and to invest in education via reductions in longevity and alters the effectiveness of education expenditures via impaired cognitive learning. Two predictions of the model are noteworthy. The first prediction is the existence of two stable BGPs with a separating saddle path. One BGP is desirable featuring high economic growth and low pollution, whereas the other should be avoided because it is associated with low economic growth and high pollution. The second prediction is that economic and environmental cycles may emerge, implying inequality between generations. These theoretical results are supported by empirical evidence and imply a role for government to steer the economy toward the desirable BGP and eliminate the cycles. [ABSTRACT FROM AUTHOR]

We examine the implications of limited stock market participation (the stylized fact that only a fraction of households directly own stocks) for economic growth and, in particular, fiscal sustainability. Constructing an overlapping generations model where (1) individuals can choose between two types of savings (i.e., physical capital with high returns but costly to hold and bank deposits with low returns but no costs), and (2) banks invest part of their total deposits in physical capital and use the rest to underwrite government debt, we show the following. First, an increase in the average level of an individual's financial literacy worsens fiscal sustainability while promoting economic growth under plausible parameter values. Second, if banks decrease (resp. increase) the number of government bonds they underwrite, fiscal sustainability improves (resp. worsens) when the average financial literacy of individuals is relatively low. [ABSTRACT FROM AUTHOR]

Using longitudinal data of 110 prefecture-level cities in China between 2006 and 2019, this paper conducts a Granger causality test between air cargo and regional economies through a multivariate VAR model, and attempts to explain the causal relationship in accordance with the endogenous and exogenous growth theory. Our results show that while the impacts of regional socioeconomic factors, including GDP and employment, on air cargo are larger in terms of magnitude than those of air cargo on the regional economy, the former effects are less robust when subsamples are included in the models. The benefits of air cargo growth for local economic growth are less dependent on the sizes, locations, and characteristics of cities. In accordance with the endogenous and exogenous growth theory, air cargo development policies need to be more favorable to regions with faster growth in secondary industry employment, as well as regions that are in urgent need of developing import and export trade. [ABSTRACT FROM AUTHOR]

Effectively evaluating the influencing factors of environmental pollution at the system level has become a hot topic in sustainable socioeconomic development; however, none of the existing studies have attempted to explore the relationship between intergovernmental fiscal transfers and environmental pollution. In this work, we aim to address the research gap from theoretical and empirical perspectives. Under the framework of endogenous growth theory, we first analyze the dynamic relationship between intergovernmental fiscal transfer ratio and the environment. Findings demonstrate that intergovernmental fiscal transfer ratio and environmental pollution have a bell-shaped relationship. We then conduct an empirical investigation of CO2 emissions with panel data for China's 30 provinces for the period of 1998–2017 by combining spatial econometric methods. The robust empirical results support the aforementioned theoretical findings. The findings of this work may help the central and provincial governments of China in addressing CO2 emission problems by using a reasonable intergovernmental fiscal transfer ratio. [ABSTRACT FROM AUTHOR]

Even long-run macroeconomic growth models that allow for endogenous growth rely on simplistic assumptions regarding demographic regimes. This paper develops a model with more realistic variation in such regimes, including both excessively high and excessively low levels of average fertility. Variations in the structure of the market economy shape these population dynamics, and these trends in turn affect macroeconomic outcomes. Like early overlapping generations models of the type proposed by Paul A. Samuelson, our approach points to market failures and the importance of social institutions and nonmarket relationships that influence transfers between the old and the young, and the costs of childbearing. It also highlights current demographic imbalances at the country level and points to the need to develop open-economy extensions of this model that can capture the effects of population redistribution through immigration. HIGHLIGHTS Demographic trends affect macroeconomic outcomes, and vice versa. These dynamics challenge the assumption that individual decisions generate sustainable outcomes. In the long run, below-replacement fertility can have serious economic consequences. The macroeconomic model outlined here suggests that costs of caring for dependents should be more equitably shared. [ABSTRACT FROM AUTHOR]

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I consider the impact of market contestability on innovation and growth. To examine this, I use discrete entry (i.e. an integer number of firms) as a tool to vary contestability in each sector of a disaggregated multi‐sector endogenous growth model. Contestability affects entry, extending results beyond competition. As a result, sectors with lower contestability have lower innovation and sectors characterized by Cournot oligopoly have lower innovation than sectors characterized by Bertrand. The effect of contestability is in addition to the effects of competition. Entry requirements become a consideration for innovation and growth policy, particularly in small or isolated economies. [ABSTRACT FROM AUTHOR]

This paper proposes a microfounded model featuring frictional labor markets that generates procyclical R&D expenditures as a result of optimizing behavior by heterogeneous monopolistically competitive firms. This allows to show that business cycle fluctuations affect the aggregate endogenous growth rate of the economy. Consequently, transitory shocks leave lasting level effects. This mechanism is responsible for economically significant hysteresis effects that significantly increase the welfare cost of business cycles relative to the exogenous growth model. I show that this has serious policy implications and creates ample space for policy intervention. I find that several static and countercyclical subsidy schemes are welfare improving. Importantly, I find that due to labor market frictions subsidizing incumbent firms generates large and positive welfare effects. [ABSTRACT FROM AUTHOR]

This paper presents a multi-country version of the Ramsey growth model with cross-country technological interdependence. The results rationalize several stylized facts about growth and convergence. First, individual countries tend to converge toward country-specific balanced growth paths rather than steady-state equilibria. Second, an economy that accounts for a smaller share of the world technology distribution harnesses the "advantages of backwardness" to catch up at a faster speed. Third, countries grow at different rates during the phase of transitional dynamics. However, technological interdependence creates a force toward cross-country convergence in the growth rate and stability of world income distribution in the long run. Finally, cross-country differences in structural characteristics and initial conditions lead to divergences in the level of income per capita. [ABSTRACT FROM AUTHOR]

We devise an endogenous growth model in which agents' utility depends not only on current consumption but also on the pleasure of anticipated future consumption. We consider the case in which agents derive satisfaction from their own anticipatory feelings—inward-looking or internal anticipation—and the case in which agents derive utility from anticipation of other people's future consumption—outward-looking or external anticipation. We characterize the effects of introducing a forward-looking consumption reference on the dynamics of the economy. Whereas the inward-looking economy features transitional dynamics, the outward-looking economy does not. The distortions caused by the externality in the economy with external habits can be corrected by subsidizing income at a time-varying rate or by means of a tax on consumption at a decreasing rate. We contrast the equilibrium dynamics of our specification to the more standard specification of the habit formation consumption reference point. Numerical simulations supplement the theoretical analysis. [ABSTRACT FROM AUTHOR]

In innovation-based endogenous (Schumpeterian) growth theory, the production of innovations is constrained basically by the finite nature of the labor supply. In this paper, I show that innovations are constrained because (1) the amount of fluid intelligence of researchers in an economy is limited and (2) the returns on investments in technologies and in capital are kept equal through arbitrage in markets. With these constraints, equilibrium values of the number of researchers and their average productivity in an economy exist, and the equilibrium value of average productivity determines the amount of innovation production in each period. Distributions of fluid intelligence among researchers are most likely heterogeneous across economies, but if economies are open to each other, an economy with a smaller number of researchers with a high level of fluid intelligence can grow at the same rate as an economy with more of them. [ABSTRACT FROM AUTHOR]

The aim of this study is to present a stability in a two-dimensional dynamical system of endogenous growth with public capital. We assume the simple model of the economic growth, in which both private and public capital can influence on the rate of growth of knowledge. The public capital is rival but non excludable goods, i.e. there is a congestion in use of public capital. The model of growth is formulated as a two-dimensional dynamical system. Using mathematical methods of dynamical systems, we analyze growth paths as well as the stationary states of the system and their stability.

In this paper, we analyse the simplest possible three-dimensional model of endogenous growth to account for the relationship between financial intermediation and economic growth. In our setting, households maximize an interim utility function and firms maximize profit. Households can save money only through banks which offer firms investment loans. We show that under very general assumptions, investments realized by firms depend not only on savings accumulated by banks but also on financial intermediation technology ϕ(θ). Using mathematical methods of dynamical systems, we found stationary states of the system and study their stability.

This paper reconstructs Carl Menger's theory of economic development centered around the growth of knowledge. Menger made knowledge central to the economic process, long before this was done more widely in economics. His work draws attention to two different types of knowledge, shared cognitive and institutional frameworks which help create coherent and integrated markets on the one hand, and, on the other hand, private--increasingly specialized and differentiated--knowledge used in the production of heterogenous (capital) goods. We situate Menger's work on economic development in the evolutionary endogenous growth tradition going back to Bernard Mandeville and Adam Smith, and later developed by Alfred Marshall, Allyn Young, Ludwig Lachmann, and others. We use these insights to suggest that one of the crucial questions of economic organization is (1) the complementarity between the two types of knowledge we identify here, and (2) the extent to which knowledge is a part of shared social infrastructures rather than being organized privately within firms and other organizations. [ABSTRACT FROM AUTHOR]

Human Capital is undeniably a very important factor for economic growth. In this paper, we investigate the impact of Human Capital on growth using the Neoclassical and Endogenous Growth models. We use the Generalized Method of Moment (GMM) method with 8 different Human Capital proxies measured in terms of quantity and quality of education. Using the LSDV method, we find: (i) Human Capital plays a significant rolein explaining growth, (ii) Identical initial technology assumption cannot be ignored in the growth model, (iii) The selection of proxies in terms of quantity and quality of education is very influential on the conclusion of the impact of Human Capital. to growth. With the GMM method, it is concluded that followers will diffuse to catch-up leader, while countries that are close to the leader will take advantage of the power of innovation. Our results also reinforce the view that trade and institutions are two of the most influential factors in our model. Finally, it is important to examine the issue of income inequality in developing country growth models and the issue of reverse causality between education and economic growth. [ABSTRACT FROM AUTHOR]

The objective of the paper is to study how the tax burden arising from an exogenous stream of public expenditures and transfers should be distributed between labor and capital in a scale‐less endogenous growth model, where the engine of growth are successful innovations. Our laboratory is a prototypical quality ladder model with a labor/leisure choice where research and development productivity is decreasing in the size of the economy. Our contribution is to show that even when labor supply has no effects on growth in the long run, it will still be optimal to tax capital for reasonable parametrizations of the model. [ABSTRACT FROM AUTHOR]

Since the financial crisis in 2008, slow growth has riddled Europe and the COVID‐19 pandemic is amplifying the challenge. Promoting economic growth and transforming to a more knowledge‐based industrial structure will be high on the agenda for the coming decades. We study how more and better human capital can contribute to knowledge accumulation and structural change by means of a dynamic endogenous growth model, with Norway as a numerical case. Human capital has two main roles in productivity growth: to increase the innovative capacity by participating in research and development (R&D), and to increase the absorptive capacity in sectors that trade and can learn from abroad. We find that in a small, open economy, sectors where human capital, R&D and trade interact and enable absorption, tend to grow fastest. [ABSTRACT FROM AUTHOR]

The concept of endogenous growth states that economic growth is caused by variables within the economy rather than external ones. This study's major goal is to demonstrate the link between education, human capital, and endogenous growth in Pakistan. For the period 1990-2021, time series data is used. The stationary is confirmed using the augmented dickey fuller (ADF) method. In this research, the nonlinear autoregressive distributed lag model (NARDL) technique is employed for the empirical analysis. Gross domestic product (GDP), education enrolment, human capital, inflation, trade, and gross fixed capital formation are the factors examined in this study. In the current research, gross domestic product, education enrollment, and human capital are dependent variables, while inflation, trade, gross fixed capital formation and education enrollment are independent variables. Inflation shows an inverse relationship with the gross domestic product, while trade and education enrollment show a positive relationship with the gross domestic product. Gross fixed capital formation shows an inverse relationship with human capital, while education enrollment and inflation also show a negative relationship with human capital. Gross fixed capital formation and trade show a positive impact on education enrollment, while inflation shows a negative impact on education enrollment. It is recommended that the government should decrease inflation to increase gross domestic product (GDP). This study suggests that education enrollment (EDUENROLL), trade (TRADE), and gross fixed capital formation (GFCF) also increase. [ABSTRACT FROM AUTHOR]

The paper describes how Robert E. Lucas, Jr.'s monetary economies are based on his methodology of using a single general equilibrium dynamic optimization model with microeconomic foundations that can be tested with econometric methods. It shows how, since his 1972 neutrality paper, Phillips curves continue to be a foundation for policy prescription contrary to Lucas's 1972 results. In support of Lucas's hypothesis, historical Phillips curves are shown to be idiosyncratic rather than a basis for policy. Using Lucas's alternative microfounded approaches to money, growth, and asset pricing, the paper then presents Lucas-type extensions for money and growth using a microfounded bank production of exchange credit as an alternative to money, as suggested by Lucas. The paper also shows how this leads to endogenous velocity, money causing inflation, and inflation causing lower economic growth, as in evidence. This implies that Lucas-based low stable inflation policy yields high economic growth and employment. [ABSTRACT FROM AUTHOR]

In this paper, we develop an overlapping generation model with imperfect competition and land to provide a theoretical foundation for some empirical observations made since the end of the 1970s. The problem is that these new "stylized facts" do not coincide with Kaldor's stylized facts and unfortunately the standard growth models are not able to explain these new facts. By using our model, we are able to theoretically derive these new facts and to provide a theoretical foundation for them. In particular, increasing market concentration leads to a decline in the labor income share, to a decline in the capital income share, to a decline in the natural interest rate, to an increasing wealth to income ratio, and to an over-proportional increase in land prices in developed countries. The model developed for analysis has close similarity with the standard neoclassical overlapping generation model with endogenous growth and land. The main difference between the standard neoclassical and the model in this paper is the market structure. Instead of assuming perfectly competitive markets, we assume an oligopolistic market structure. This leads to the occurrence of pure profits for firms and, accordingly, the input factors are no longer paid their marginal products. [ABSTRACT FROM AUTHOR]

The Venezuelan economic crisis, combined with the creation of the Orinoco Mining Arc (OMA), has pushed thousands of people to work in wildcat mines in the Venezuelan Guayana. Even though attempts have been made to control illegal mining in the past, the absence of planning and lack of concrete economic alternatives have made these efforts unsuccessful. Spatial planning could play an important role in developing a rural regional strategy aimed at making other livelihood options available. This is a challenging endeavour, however, because the Venezuelan Guayana is the largest and least populated region of the country, with most of its surface covered by fragile forests rich in ecological and cultural diversity. Moreover, data to inform decision-making are unavailable or severely limited. This paper presents an approach that attempts to overcome those obstacles and seeks to identify which are the peripheral remote areas where resource extraction and its negative externalities are most present, conflicting with the preservation of the forest, its biodiversity and the livelihoods of Indigenous populations. The conclusions presented here might assist spatial planners and policymakers who seek to explore territorial approaches for rural development and inform decision-making in peripheral regions where data are scarce.

This paper centers on the role and economic effect of the factors that affect the endogenous growth of organizations. To this end, it analyzes the case of Colombian companies, whose economy has been characterized in Latin America by maintaining a traditional economic policy and sectors that seek to maximize the opportunities offered by international markets. This study seeks to identify and analyze the factors that influence the endogenous economic growth of organizations and that allow them to be sustainable over time. For this purpose, adaptation algorithms based on fuzzy logics and supervised and unsupervised learning methods were used, generating an adaptation strategy that allows classifying and knowing the endogenous growth of companies in the Colombian context and identifying the most relevant aspects to take into account. Finally, it was found that most Colombian companies focus their business policies on strengthening human capital, followed by innovation, financial resources and, to a lesser extent, strategic alliances. [ABSTRACT FROM AUTHOR]

This paper shows that there is an inverted U-shaped relationship between public employment and economic growth. The government allocates workers to the production of public goods, which reduces operational costs, increasing the number of firms in the market, and creating incentives to innovate. Conversely, large public sectors crowd out the labor market, reducing the number of firms and the incentives to innovate. An extension of the model shows that the average human capital of public workers has the same relationship with economic growth. Therefore, even countries with small public sectors can hinder economic growth by hiring many high-productivity workers. The paper also provides empirical evidence of an inverted U-shaped correlation between the share of public workers and economic growth using data from the Worldwide Bureaucracy Indicator and the Penn World Tables. Numerical exercises show that the model replicates the inverted U-shaped relationship between public employment and economic growth found in the data. [ABSTRACT FROM AUTHOR]

It has been established that development in most African countries has been severely affected due to the loss of the key aspects that define communities and the environments in which they live. Rural communities are normally overlooked when development interventions are implemented. Immediate intervention of rural communities requires funding for infrastructure such as earth dams, training facilities, marketing of products and services, frameworks for rural development plans as well as capacity support. Such funding plays a positive role in the development of self-reliance of rural communities. Other than funding, African indigenous knowledge is critical in advancing the self-reliance of rural communities. However, such a knowledge system is either underdeveloped or not fully utilised for development purposes. The underutilisation of African indigenous knowledge leads to the loss of valuable information that could be used for developmental purposes, ensuring unified communities. This affects the establishment of self-reliance strategies in rural communities leading to the creation of endogenous growth. Such growth enriches the development process and empowers communities to be self-reliant, thus improving quality of life. The economic empowerment strategies should result in the development of rural entrepreneurs for South Africa. This study assesses the effects of self-reliance on rural community development in KwaZulu-Natal. [ABSTRACT FROM AUTHOR]

There is by now reasonable evidence that supports the notion of a trend break in the U.S. GDP since the Great Recession. To explain this phenomenon, I construct a version of the Lucas endogenous growth model, amplified with financial frictions and financial disruptions in the firms' sector. I then show how a transitory liquidity crunch is capable, at least qualitatively, of producing a similar pattern of a persistent downward shift in the GDP trend as one could infer happened in the United States since 2008. The main mechanism by which such a result is found relies on workers' decisions on providing labor to firms versus accumulating human capital. I show that a transitory liquidity crunch reduces the demand of labor. Workers anticipating a phase of depressed wages make the decision of accumulating more human capital in the short run, thereby reducing labor supply to firms. In the long run, however, incentivized by a strong recovery, workers decrease human capital accumulation and increase labor supply. Under plausible parameterizations of the model, this situation produces a net effect of a decrease in overall productivity that permanently reduces the trend at which the economy was growing prior to the crisis. [ABSTRACT FROM AUTHOR]