Found 15 article(s) for author 'Growth'

Lessons from Schumpeterian Growth Theory

Lessons from Schumpeterian Growth Theory. Philippe Aghion, May 2015, Paper. “By operationalizing the notion of creative destruction, Schumpeterian growth theory generates distinctive predictions on important microeconomic aspects of the growth process (competition, firm dynamics, firm size distribution, cross-firm and cross-sector reallocation) which can be confronted using rich micro data. In this process the theory helps reconcile growth with industrial organization and development economics.” Link

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Growth and Decentralization in Bad Times

Growth and Decentralization in Bad Times. Philippe Aghion, Raffaella Sadun, April 8, 2015, Paper. “Is decentralization beneficial to firm performance in “bad times”? We present a model where negative demand shocks increase the importance of rapid action, and improve the alignment of incentives of managers within firms. We test this idea exploiting the heterogeneous impact of the 2008-2009 Great Recession across industries and countries using firm-level cross-country panel data combined with our survey data on firm organization. Decentralized firms perform better than their centralized counterparts in terms of sales and TFP growth…” Link

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Informal Tradables and the Employment Growth of Indian Manufacturing

Informal Tradables and the Employment Growth of Indian Manufacturing. William R. Kerr, March 2015, Paper. “India’s manufacturing growth from 1989 to 2010 displays two intriguing properties: 1) a substantial fraction of absolute and net employment growth is concentrated in informal tradable industries, and 2) much of this growth is connected to the development of one-person establishments. This paper investigates the causes and determinants of these growth patterns. The rapid urbanization of the informal sector plays the strongest role, while there is some evidence for subcontracting by the formal sector and a “push” entrepreneurship story. The paper also finds modest connections of this growth to rising female...” Link

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Liquidity and growth: the role of counter-cyclical interest rates

Liquidity and growth: the role of counter-cyclical interest rates. Philippe Aghion, Emmanuel Farhi, February 2015, Paper. “In this paper, we use cross-industry, cross-country panel data to test whether industry growth is positively affected by the interaction between the reaction of real short-term interest rates to the business cycle and industry-level measures of financial constraints. Financial constraints are measured, either by the extent to which an industry is prone to being “credit-constrained”, or by the extent to which it is prone to being “liquidity-constrained”. Our main findings are that: (i) the interaction between credit or liquidity...” Link

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Growth slowdowns: Middle-Income Trap vs. Regression to the Mean

Growth slowdowns: Middle-Income Trap vs. Regression to the Mean. Lant Pritchett, Lawrence H. Summers, December 11, 2014, Paper. “Dozens of nations think they are in the ‘middle-income trap’. Lant Pritchett and Larry Summers present new evidence that this trap is actually just growth reverting to its mean. This matters since belief in the ‘trap’ can lead governments to misinterpret current challenges. For lower-middle-income nations the 21st century beckons, but there are still 19th century problems to address. Moreover, sustaining rapid growth requires both parts of creative destruction, but only one is popular with governments and...” Link

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Never Waste a Good Crisis? Growth and Decentralization in the Great Recession

Never Waste a Good Crisis? Growth and Decentralization in the Great Recession. Philippe Aghion, Raffaella Sadun, October 20, 2014, Paper. “We argue that decentralization is particularly beneficial to firm performance in “bad times”. We present a model where bad times increase the importance of rapid action, and improve the alignment of incentives of managers within firms. We test this idea exploiting the 2008-2009 Great Recession using firm-level cross country panel data combined with our survey data on firm organization…” Link

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Dynamic Loss Aversion, Growth, and Development

Dynamic Loss Aversion, Growth, and Development, Michael Kremer, October 2014,Paper, We build a prospect-theoretic model to explain several stylized facts in the development literature. Agents get reference-dependent utility from the income generated by their assets, and are more a ected by losses than by gains. Such agents may underinvest in novel or risky assets, leading to unexploited opportunities for high marginal returns, while simultaneously maintaining high holdings of low-return assets that they have owned in the past. There is a range of possible steady-state asset allocations, depending on past ownership, in contrast to conventional models of poverty traps. The provision of insurance against catastrophic loss will have a larger e ect in motivating such agents to invest than it would on agents with classical preferences. We show how credit contract design can partially mitigate under-investment while simultaneouslyencouraging repayment of loans. Link

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Informal Employment and Development: Patterns of Inclusion and Exclusion

Informal Employment and Development: Patterns of Inclusion and Exclusion, Martha Chen, September 2014, Paper, At present, there is renewed interest in the informal economy worldwide. This renewed interest has rekindled some of the old debates about the phenomenon. This article will address two of the core debates: first, whether or not the informal economy is linked to the formal economy and modern capitalist development; and, second, whether or not the informal economy is outside the reach of government regulation. In so doing, it will raise a third dimension largely overlooked in the debates: the exclusion of the informal economy in economic development planning, especially at the local level.. Link

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Growth, Trade, and Inequality

Growth, Trade, and Inequality. Elhanan Helpman, May 4, 2014, Paper. “We introduce firm and worker heterogeneity into a model of innovation-driven endogenous growth. Individuals who differ in ability sort into either a research sector or a manufacturing sector that produces differentiated goods…” May require purchase or user account. Link

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Inequality and Growth in the ‘Chinese Dream’

Inequality and Growth in the ‘Chinese Dream’. Rafael Di Tella, Meg Rithmire, March 2014, Case. “Xi Jinping assumed his position as head of China’s fifth generation of leaders in 2012. Xi was head of both the People’s Republic of China and the Chinese Communist Party, which had ruled China since 1949. Xi inherited a country far more unequal than the one that Mao Zedong, Communist China’s first leader, had left behind in 1978. The growth of markets had made China much wealthier, but also generated many social problems, including inequality, corruption, and social protests. This case…” May require purchase or user account. Link verified August 21, 2014

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