Found 1295 article(s) in category 'Economic Growth'

Green Industrial Policy: Accelerating Structural Change towards Wealthy Green Economies

Green Industrial Policy: Accelerating Structural Change towards Wealthy Green Economies. Dani Rodrik, 2017, Paper, “There are two major reasons for governments and societies to accelerate structural change in their economies and proactively shape its direction. First, there is the challenge of creating wealth. Structural change, that is, the reallocation of capital and labour from low- to high-productivity activities, is a key driver of productivity growth and higher incomes. This is particularly important for developing countries where incomes are low and poverty is pervasive. According to the latest available estimates, 767 million people lived on less than $1.90 a day, and 1.9 billion people in the developing world still had less than US $ 3.10 a day in 20131 – a clear indication that the current structural composition of national economies does not provide a sufficient number of productive jobs.Link

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The Productivity Slowdown and the Declining Labor Share: A Neoclassical Exploration

The Productivity Slowdown and the Declining Labor Share: A Neoclassical Exploration. Elhanan Helpman, September 2017, Paper, “We explore the possibility that a global productivity slowdown is responsible for the widespread decline in the labor share of national income. In a neoclassical growth model with endogenous human capital accumulation a la Ben Porath (1967) and capital-skill complementarity a la Grossman et al. (2017), the steady-state labor share is positively correlated with the rates of capital-augmenting and labor-augmenting technological progress. We calibrate the key parameters describing the balanced growth path to U.S. data for the early postwar period and find that a one percentage point slowdown in the growth rate of per capita income can account for between one half and all of the observed decline in the U.S. labor share.Link

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The Fear Factor in Today’s Interest Rates

The Fear Factor in Today’s Interest Rates. Carmen Reinhart, September 23, 2017, Opinion, “Atlantic-hugging policymakers and pundits, buffered by a continent and a large ocean, may not fully appreciate the significant effect on global financial markets that the threat posed by North Korea has had in recent months. But competition for safe assets has clearly heated up.Link

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Is Larry Summers A Fan Of Nominal GDP Level Targeting?

Is Larry Summers A Fan Of Nominal GDP Level Targeting? Lawrence Summers, September 19, 2017, Audio, “You are going to have to listen to my podcast with him to find out the answer. Here is a hint: We spent a portion of the show talking about NGDP level targeting (NGDPLT) and what it would take to actually get it implemented it at the Federal Reserve. So listen to the show to find out Larry’s thoughts on NGDPLT as well as his views on secular stagnation, Fed policy since the crisis, and macroeconomic policymaking in real time. It was a fun interview.Link

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Larry Summers on Macroeconomics, Mentorship, and Avoiding Complacency | Conversations with Tyler

Larry Summers on Macroeconomics, Mentorship, and Avoiding Complacency: Conversations with Tyler. Lawrence Summers, September 2017, Video, “The economist, President Emeritus at Harvard University, and former Treasury Secretary joins Tyler to discuss innovation in higher education, Herman Melville, the Fed, Mexico, Russia, China, the Larry Summers production function, philanthropy and Larry’s table tennis adventure in the summer Jewish Olympics.Link

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Mihir Desai on “The Wisdom of Finance”

Mihir Desai on “The Wisdom of Finance”. Mihir Desai, September 12, 2017, Video, “In 1688, essayist Josef de la Vega described finance as both “the fairest and most deceitful business…the noblest and the most infamous in the world, the finest and most vulgar on earth.” The characterization of finance as deceitful, infamous and vulgar still rings true today – particularly in the wake of the 2008 financial crisis. But, what happened to the fairest noblest, and finest profession that de la Vega saw? De la Vega hit on an essential truth that has been forgotten: finance can be just as principled, life-affirming and worthy as it can be fraught with questionable practices. Today, finance is shrouded in mystery for outsiders, while many insiders are uneasy with the disrepute of their profession. How can finance become more accessible and also recover its nobility?Link

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Donald Trump’s 3% growth plan is only for the 1%

Donald Trump’s 3% growth plan is only for the 1%. Kenneth Rogoff, September 11, 2017, Opinion, “Donald Trump has boasted that his policies will produce sustained 3%-4% growth for many years to come. His prediction flies in the face of the judgment of many professional forecasters, including on Wall Street and at the Federal Reserve, who expect that the US will be lucky to achieve even 2% growth.Link

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We’re Richer Than We Realize

We’re Richer Than We Realize. Martin Feldstein, September 8, 2017, Opinion, “Government statistics paint an excessively grim picture of what is happening to real wages and the growth of real national income. Although most households’ take-home cash has been rising very slowly for decades, their standard of living is increasing more..Link

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Managing Our Hub Economy

Managing Our Hub Economy. Marco Iansiti, Karim Lakhani, September/October 2017, Opinion, “The global economy is coalescing around a few digital superpowers. We see unmistakable evidence that a winner-take-all world is emerging in which a small number of “hub firms”—including Alibaba, Alphabet/Google, Amazon, Apple, Baidu, Facebook, Microsoft, and Tencent—occupy central positions. While creating real value for users, these companies are also capturing a disproportionate and expanding share of the value, and that’s shaping our collective economic future. The very same technologies that promised to democratize business are now threatening to make it more monopolistic.Link

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An Empirical Analysis of Investment Return Dispersion in Emerging Market Private Equity

An Empirical Analysis of Investment Return Dispersion in Emerging Market Private Equity. Josh Lerner, Fall 2017, Paper, “The authors use transaction-level data to compare the dispersion of private equity (PE) returns in emerging markets (EMs) to the same in developed markets (DMs). They regress within-market absolute deviation from the mean on an EM indicator and controls. They find evidence suggesting that the distribution of transaction-level TVPI has lower variance within EMs than within DMs, although with some caveats. The results suggest opportunities for further research exploring the relative riskiness of EM PE.Link

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