Volatility and Growth: Governments are Key There exists a persistent disagreement in the literature over the effect of business cycles on economic growth. This paper offers a solution to this disagreement, suggesting that volatility carries a positive direct effect, but also a negative indirect effect, operating through the insurance mechanism of government size. Theoretically, the net growth e...

Because of their more limited inequality and more comprehensive social welfare systems, many perceive average welfare to be higher in Scandinavian societies than in the United States. Why then does the United States not adopt Scandinavian-style institutions? More generally, in an interdependent world, would we expect all countries to adopt the same institutions? To provide theoretical answers t...

This paper argues that openness to new, unconventional and disruptive ideas has a firstorder impact on creative innovations– innovations that break new ground in terms of knowledge creation. After presenting a motivating model focusing on the choice between incremental and radical innovation, and on how managers of different ages and human capital are sorted across different firms with differen...

We propose and investigate a new channel through which the resource curse a stylized fact that countries rich in natural resources grow slower operates. Predatory governments are more likely to expropriate corporate profits in natural resource industries when the price of resources is higher. Corporations whose profits are more dependent on the price of resources can mitigate the risk of exprop...

Risk, Institutions and Growth: Why England and Not China? We analyze the role of risk-sharing institutions in transitions to modern economies. Transitions requires individual-level risk-taking in pursuing productivity-enhancing activities including using and developing new knowledge. Individual-level, idiosyncratic risk implies that distinct risk-sharing institutions – even those providing the ...

Economic Growth is a central concept in Theory. Most of the modern societies regard growth as an important determinant for rising standards living. Their effects can be observed not only more goods and services but also brand new processes. Investment human capital re-garded very source long-term, sustainable Growth. The purpose this paper to provide brief description Growth, how approach its m...

Growth regressions are often influenced by extreme observations in the sample. We demonstrate the usefulness of a simple Monte Carlo method as a diagnostic for sample robustness. We apply the technique to a data set used by Mehlum et al. (2006), who show that institutional quality is decisive for growth in resource rich countries. Monte Carlo sampling reveals that this result hinges crucially o...

As a result of debt enforcement problems, many high-productivity firms in emerging economies are unable to pledge enough future profits to their creditors and this constrains the financing they can raise. Many have argued that, by relaxing these credit constraints, reforms that strengthen enforcement institutions would increase capital flows to emerging economies. This argument is based on a pa...

Salmonella isolates belonging to different serogroups have been analysed with respect to physicochemical surface properties and interaction with human polymorphonuclear granulocytes (PMNs). Most (22/34) recent isolates of the different serotypes showed hydrophilic surface properties and little if any negative charge accompanied by resistance to phagocytosis by PMN similar to the old laboratory ...

The 1870-1913 period marked the birth of the first era of trade globalization. How did this tremendous increase in trade affect economic development? This work isolates a causality channel by exploiting the fact that the steamship produced an asymmetric change in trade distances among countries. Before the invention of the steamship, trade routes depended on wind patterns. The introduction of t...