We introduce endogenous directed technical change into integrated climate policy assessment. Our model builds on state-of-the-art theory as well as econometric data. We apply our model to the assessment of a carbon budget based climate policy. Motivated by the announcement of international transfers during recent climate policy negotiations, we vary the begin of endogenous international transfe...

This paper examines the evidence for regional convergence or catch-up in levels and growth rates of per capita income among the 16 major states in India between 1960 and 1992. The results — estimated using OLS, the within-group LSDV estimator, Re-Weighted Least Squares, and Least Trimmed Squares — establish that unconditional convergence in growth rates does not obtain, but that there is clear ...

We provide a new explanation for the narrowing and reversal of the gender education gap. We assume that parents maximize the full income of their children and that males have an additional income, independently of education. This additional income biases preferences towards sons and implies that females have relative advantage in producing income through education. When the returns to human cap...

In this paper we modify the method of Blanchard and Quah (1989) in order to estimate a structural VAR model appropriate for a small open economy. In this way we identify shocks to output and prices in the members of the two monetary unions that make up the African CFA Franc Zone. The costs of monetary union membership will depend on the extent to which price and output shocks are correlated acr...

In this study, we look at the relationship between export stability, investment and economic growth in nine Asian countries using time series data. The few previous time series studies in this area have not paid any attention to stationarity and cointegration issues. We find that in most cases, the variables are non-stationary in their levels and not cointegrated. These results raise serious do...

A growing literature relies on natural experiments to establish causal effects in macroeconomics. In diverse applications, natural experiments have been used to verify underlying assumptions of conventional models, quantify specific model parameters, and identify mechanisms that have major effects on macroeconomic quantities but are absent from conventional models. We discuss and compare the us...

In this paper we report the results from a detailed investigation of the shifts of the world production frontier function over the period 1980-2010. Analogous to a radar we implement a novel measurement approach for these shifts using nonparametrically computed productivity measures to scan the frontier shifts across the entire input-output space. The shifts of the frontier function measured in...

This paper develops a model to assess the quantitative effect of entry cost and financial friction on cross-country income and total factor productivity (TFP) differences. The main focus is on the interaction between entry cost and financial friction. The model is calibrated to match establishment-level statistics for the U.S. economy assuming a perfect financial market. The quantitative analys...

This paper shows, in a two-sector Malthusian model of endogenous population growth, that output per capita, population density, and industrialization depend upon the labor intensity of agricultural production. Because the diminishing returns to labor are less pronounced, high labor intensity (as in rice production) leads not only to a larger population density but also to lower output per capit...

Entry costs vary dramatically across countries. To assess their impact we construct a model with endogenous entry and operation decisions by …rms and calibrate it to match the U.S. distribution of …rms by size. Higher entry costs lead to greater misallocation of productive factors and lower TFP and output. In the model, countries in the lowest decile of the entry costs distribution have 1.35 to...