Resource abundance, growth and welfare: A Schumpeterian perspective

Is the “ curse of natural resources ” really a curse ? March 20 , 2008

This paper takes a new look at the long-run implications of resource abundance. Using a Schumpeterian growth model that yields an analyitical solution for the transition path, it derives conditions under which the “curse of natural resources” occurs and is in fact a curse, meaning that welfare falls, conditions under which it occurs but it is not a curse, meaning that growth slows down but welf...

Growth, Cycles and Welfare: A Schumpeterian Perspective∗

We use a Schumpeterian model in which both the economy’s growth rate and its volatility are endogenously determined to assess some welfare and policy implications associated with business cycle ßuctuations. Because it features a higher average growth rate than its acyclical counterpart, steady— state welfare is higher along the cyclical equilibrium growth path of the model. We assess the impact...

The Impact Of Institutional Quality On Relation Between Resource Abundance And Economic Growth

Corporate Taxes, Growth and Welfare in a Schumpeterian Economy (Running Title: Corporate Taxes and Welfare)

I take a new look at the long-run implications of taxation through the lens of modern Schumpeterian growth theory. I focus on the latest vintage of models that sterilize the scale effect through a process of product proliferation that fragments the aggregate market into submarkets whose size does not increase with the size of the workforce. I show that the following interventions raise welfare:...

Monetary Policy and Endogenous Market Structure in a Schumpeterian Economy

In this study, we develop a monetary Schumpeterian growth model with endogenous market structure (EMS) to explore the e¤ects of monetary policy on the number of …rms, …rm size, economic growth and social welfare. EMS leads to richer implications and di¤erent results from previous studies in which market structure is exogenous. In the short run, a higher nominal interest rate leads to lower grow...