In this paper, we assess the empirical relationship between population growth, mobility, and state-level capital spending in the United States. To evaluate the magnitude of the coefficients, we introduce an explicit, quantitative political-economy model of government spending determination, where mobility and population growth generate departures from Ricardian equivalence. Our estimates find s...

Maintaining price stability requires not only commitment to an appropriate monetary policy rule, but an appropriate fiscal policy rule as well. Ricardian equivalence does not imply that fiscal policy is irrelevant, except in the case of a certain class of policies (“Ricardian” policies). The role of fiscal developments in inflation determination under a non-Ricardian regime is illustrated throu...

Most of the scholarly reinterpretations of the Principle of Effective Demand are not in line with Keynes’s original presentation of it in Chapter 3 of the General Theory. To substantiate this claim, Keynes’s definition is here first reproduced and then compared with different reinterpretations of the principle by textbook authors, and Neo-Ricardian, Kaleckian, and Post Keynesian economists. A n...

This paper extends the Brezis et al. (1993) Ricardian leapfrogging model by introducing geographically mobile capital and allowing for a wider variety of development patterns. In a two-region economy, localised learning-by-doing causes specialisation and uneven development. Technological change reverses the existing development pattern if the new technology locates in the low-wage region. Howev...

During the last decades, some Asian countries have experienced a substantial change of their production structure leading to a change of their trade patterns. Whereas formerly high-tech goods were imported, they now constitute an important fraction of the countries' exports. Possible reasons for such a situation to arise are investigated in a model combining Ricardian and Heckscher-Ohlin effect...

The impact of international trade on domestic growth is revisited in a model with dynamic externalities and static increasing returns to scale. The model embraces features of both classical and new growth and trade theories, allows for learning by doing, and integrates several strains of thought in a general equilibrium with two regions. In contrast to previous work, the model shows that intern...