We estimate the development effects of electrification across Brazil over the period 1960–2000. We simulate a time series of hypothetical electricity grids for Brazil for the period 1960–2000 that show how the grid would have evolved had infrastructure investments been made based solely on geography-based cost considerations. Using the model as an instrument, we document large positive effects ...

We analyze recent contributions to growth theory based on the model of expanding variety of Romer (1990). In the first part, we present different versions of the benchmark linear model with imperfect competition. These include the “labequipment” model, “labor-for-intermediates” and “directed technical change”. We review applications of the expanding variety framework to the analysis of internat...

I examine the e¤ect of age-distribution of the society on economic growth through technological progress. I build a multisector economy model that involves population pyramid. I characterize the steady-state of the model for low and high population growth rate. Higher population growth rate yields faster TFP and output growth in the long-run. I analyze dynamic behavior of the economy. I calibra...

This paper compares the growth prospects of China and India through a growth accounting analysis. Consistent time series for capital stock and employment are constructed using available survey data, and recent revisions to the national accounts for both countries are incorporated. The results allow for a discussion of the sources of growth in both countries, and a consideration of each country’...

This paper argues that barriers affect both the beginning date and the subsequent pace of modern growth, and taking into account this fact enriches our knowledge of cross-country income differences. The model matches the observed inverted U-shape of cross-country income differences, which implies that a substantial fraction of current income differences is transitional. Hence, the model require...

We present a version of the neoclassical model with an endogenous industry structure. We obtain multiple steady-state equilibria with an arbitrarily small degree of increasing returns to scale. While the most productive …rms operate across all the steady states, in a poverty trap less productive …rms operate as well. This results in lower average …rm productivity and total factor productivity. ...

We introduce publicly funded education in R&D-based economic growth theory. The framework allows us to i) incorporate a realistic process of human capital accumulation for industrialized countries, ii) reconcile R&D-based growth theory with the empirical evidence on the relationship between economic prosperity and population growth, iii) revise the policy invariance result of semi-endogenous gr...

We study the optimal dynamics of an AK economy where population is uniformly distributed along the unit circle. Locations only differ in initial capital endowments. Despite constant returns to capital, we prove that transition dynamics will set in. In particular, we prove that the spatio-temporal dynamics, induced by the willingness of the planner to give the same (detrended) consumption over s...

This paper explores whether the post-1980 decline in infrastructure investment in developing countries is a source of growing disparities in world per capita GDP. I start by reviewing the literature on the infrastructure-productivity link, arguing that a balanced reading of previous studies points to a significant effect of infrastructure provision on productivity. I then empirically study whet...

A calculation is given of the viscous force, exerted by a flowing fluid o11 a dense swarm of particles. The model underlying these calculations is tha t of a spherical particle embedded in a porous mass. The flow through this porous mass is decribed by a modification of D a r c y 's equation. Such a modification was necessa'ry in order to obtain consistent boundary conditions. A relation betwee...