Using data from 11 manufacturing industries in 17 OECD countries, this paper empirically investigates the determinants of cross-country differences in the persistence of productivity differentials. Specifically, the paper focuses on the effects of product market structure and technology diffusion. It is found that the manufacturing industries display a wide range of convergence rates. Consisten...

The study aims to determine the factors affecting unemployment rate from 1993-2018 using OLS estimators. With 26 observations, research utilized six independent variables, namely GDP growth rate, inflation foreign direct investment, government spending, capital and trade openness. dataset was taken Global Economy Philippine Statistics Authority. Furthermore, as processed, it found that openness...

Foreign aid has become a very important source of government revenue for many countries in the world. The academia and policy communities are interested in whether foreign aid has done what it is supposed to do. The aid literature has paid special attention to foreign aid’s effects, if any, on poverty reduction, economic growth, human capital accumulation, to name but a few. One often overlooke...

The severe global economic downturn and the large stimulus programs that governments in many countries adopted in response have generated a resurgence in research on the effects of fiscal policy. One key lesson emerging from this research is that there is no single fiscal multiplier that sums up the economic impact of fiscal policy. Rather, the impact varies widely depending on the specific fis...

The focal aim of this study is to examine the validation education-led economic growth hypothesis in Malaysia under recovery period following 2008 world crisis. Specifically, implemented augmented Cobb-Douglas model order observe dynamic relationship between selected variables including, industrial production index, gross fixed capital formation, employment, government spending on education and...

In standard solutions, the new-Keynesian model produces a deep recession with deflation in a liquidity trap. Useless government spending, technical regress, and capital destruction have large positive multipliers. The recession, deflation and policy paradoxes are larger when prices are less sticky. I show that these features are all artifacts of equilibrium selection. For the same interest-rate...

This paper examines the mechanism through which pro-growth policies such as government spending on infrastructure might a¤ect the dynamics of inequality. We develop a model in which government-provided infrastructure is not only the engine of growth, but also a critical determinant of the distributions of wealth, income, and welfare. Government spending on infrastructure by itself is shown to b...

Social impact bonds (SIBs) have the potential to improve the efficiency of government health-care spending in South-East Asia. In a SIB, governments sign a pay-for-performance contract with one or several providers of health-care services, and the providers borrow up-front capital from investors. Governments outside South-East Asia have started to experiment with SIBs in criminal justice, homel...

We develop a model of human capital formation with endogenous labor supply and heterogeneous agents to explore the optimal level of education subsidies along with the optimal schedule of the labor income tax. If the government can observe inputs into the production of human capital, subsidies on education ensure efficiency in human capital accumulation and labor taxes are more progressive than ...

Government spending policy has an important macroeconomic stabilization role. We empirically revisit the computation of fiscal cyclicality measures by employing a novel time-varying approach while explicitly dealing with endogeneity concerns. Analyzing sample 36 advanced economies from 1970 to 2015, focus paper is on side budget and its components. The average government −0.9, pointing counter-...