Found 1241 article(s) in category 'Economic Growth'

Global Competitiveness Report 2006-2007

Global Competitiveness Report 2006-2007. Michael Porter, January 1, 2007, Book. “The publication of this year’s Global Competitiveness Report comes at an important juncture for the global economy. After four years of robust growth, the global economy is expected to continue to expand by some 4.9 percent this year.The US economy, though showing signs of a slowdown, remains the world’s primary engine of growth. But remarkably strong growth rates are forecast for many emerging market economies, especially China and India. Yet amid positive growth prospects, there are a number of key uncertainties across the global economic landscape…Link

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Cyclical Budgetary Policy and Economic Growth: What Do We Learn from OECD Panel Data?

Cyclical Budgetary Policy and Economic Growth: What Do We Learn from OECD Panel Data? Philippe Aghion, 2007, Paper. “A common view among macroeconomists is that there is a decoupling between macroeconomic policy (e.g., budget deficit, taxation, money supply), which should primarily affect price and income stability and long-run economic growth, which, if anything, should depend only upon structural characteristics of the economy (property right enforcement, market structure, market mobility, and so forth)…” Link

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Context-Conditional Political Business Cycles

Context-Conditional Political Business Cycles. James E. Alt, 2007, Book Chapter in The Oxford Handbook of Comparative Politics. “Offers an innovative structure that responds to the very latest scholarship in comparative politics, with sections covering: theory and methodology, states and the state formation, political consent, political regimes and transitions, political instability, political conflict, mass political mobilization, processing political demands, and governance in comparative perspective.” Link

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Coordinating Development: Can Income-based Incentive Schemes Eliminate Pareto Inferior Equilibria?

Coordinating Development: Can Income-based Incentive Schemes Eliminate Pareto Inferior Equilibria? Rohini Pande, January 2007, Paper, “Individuals’ inability to coordinate investment may significantly constrain economic development. In this paper we study a simple investment game characterized by multiple equilibria and ask whether an income-based incentive scheme can uniquely implement the high investment outcome. A general property of this game is the presence of a crossover investment point at which an individual’s incomes from investment and non- investment are equal. We show that arbitrarily small errors in the government’s knowledge of this crossover point can prevent unique implementation of the high investment outcome. We conclude that informational requirements are likely to severely limit a government’s ability to use income-based incentive schemes as a coordination device.” Link

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Large Dams in India

Large Dams in India. Rohini Pande, January 2007, Paper. “At independence, in 1947, there were fewer than 300 large dams in India. By the year 2000 the number had grown to over 4000, more than half of them built between 1971 and 1989. India ranks third in the world in dam building, after US and China. While some of these dams were built primarily for flood control, water supply, and hydroelectric power generation, the primary purpose of most Indian dams (96 percent) remains irrigation. In fact, large dam construction has been the main form of investment in irrigation undertaken by the Indian government…” Link

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Rural Credit

Rural Credit. Rohini Pande, January 2007, Paper. “In 2000, over seventy percent of India’s population, and roughly three quarters of its poor, lived in rural areas. The main livelihood in rural India remains agriculture, an activity characterized by significant time-lags in production and a high degree of sensitivity to weather conditions. These features of agricultural production make access to financial instruments critical to a rural household’s ability to smooth income shocks and make long-term productive investments. However, as is well known lenders’ inability to perfectly identify the credit-worthiness of potential borrowers and the cost of enforcing repayment places severe restrictions on rural households’ access to credit…” Link

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Emerging Market Business Cycles: The Cycle is the Trend

Emerging Market Business Cycles: The Cycle is the Trend. Mark Aguiar and Gita Gopinath, 2007, Paper. “Emerging market business cycles exhibit strongly countercyclical current accounts, consumption volatility that exceeds income volatility, and “sudden stops” in capital inflows. These features contrast with developed small open economies. Nevertheless, we show that a standard model characterizes both types of markets. Motivated by the frequent policy regime switches observed in emerging markets, our premise is that these economies are subject to substantial volatility in trend growth. Our methodology exploits…” Link

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Efficient Expropriation: Sustainable Fiscal Policy in a Small Open Economy

Efficient Expropriation: Sustainable Fiscal Policy in a Small Open Economy, By Aguiar, Mark, Manuel Amador, and Gita Gopinath. 2006

We study a small open economy characterized by two empirically important frictions – incomplete financial markets and an inability of the government to commit to policy. We characterize the best sustainable fiscal policy and show that it can amplify and prolong shocks to output. In particular, even when the government is completely benevolent, the government’s credibility not to expropriate capital endogenously varies with the state of the economy and may be “scarcest” during recessions. This increased threat of expropriation depresses investment, prolonging downturns. It is the incompleteness of financial markets and lack of commitment that generate investment cycles even in an environment where first best capital stock is constant. Link

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Institutions and Development: A View from Below

Institutions and Development: A View from Below. Rohini Pande, November 2006, Paper: “In this paper we argue the case for greater exploitation of synergies between research on specific institutions based on micro-data and the big questions posed by the institutions and growth literature. To date, the macroeconomic literature on institutions and growth has largely relied on cross-country regression evidence. This has provided compelling evidence for a causal link between a cluster of ‘good’ institutions and more rapid long run growth. However, an inability to disentangle the effects of specific institutional channels on growth or to understand the impact of institutional change on growth will limit further progress using a cross-country empirical strategy. We suggest two research programs based on micro-data that have significant potential. The first uses policy-induced variation in specific institutions within countries to understand how these institutions influence economic activity.Link

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Why the US Current Account Deficit is Sustainable

Why the US Current Account Deficit is Sustainable. Ricardo Hausmann, May 27, 2006, Paper. “Over the last couple of years, the burgeoning of the US current account deficit, reaching $792 billion in 2005 alone, has led to significant concerns about the future of the United States and the possibility of a major global crisis. With a brief respite in 1991, it comes after twenty-four years of unbroken deficits, which have totalled over $5.2 trillion. According to some doomsayers, once the massive financing required to continue paying for such a widening gap dries up…” May require purchase or user account. Link

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