Found 39 article(s) for author 'Philippe Aghion'

Regulation and Distrust

Regulation and Distrust. Philippe Aghion, Andrei Shleifer, August 2010, Paper. “We document that, in a cross section of countries, government regulation is strongly negatively correlated with measures of trust. In a simple model explaining this correlation, distrust creates public demand for regulation, whereas regulation in turn discourages formation of trust, leading to multiple equilibria. A key implication of the model is that individuals in low-trust countries want more government intervention even though they know the government is corrupt. We test this and other implications of the model using country- and individual-level data on trust…” Link

Tags: , ,

Civil society and the state: The interplay between cooperation and minimum wage regulation

Civil society and the state: The interplay between cooperation and minimum wage regulation. Philippe Aghion, April 30, 2009, Paper. “In a cross-section of countries, state regulation of labor markets is strongly negatively correlated with the quality of labor relations. In this paper, we argue that these facts reflect different ways to regulate labor markets, either through the state or through the civil society, depending on the degree of cooperation in the economy. We rationalize these facts with a model of learning of…” Link

Tags: , , , , ,

Credit Constraints, Cyclical Fiscal Policy and Industry Growth

Credit Constraints, Cyclical Fiscal Policy and Industry Growth. Philippe Aghion, March 2009, Paper. “This paper evaluates whether the cyclical pattern of fiscal policy can affect growth. We first build a simple endogenous growth model where entrepreneurs can invest either in short-run projects or in long-term growth enhancing projects. Long-term projects involve a liquidity risk which credit constrained firms try to overcome by borrowing on the basis of their short-run profits. By increasing firms’ market size in recessions, a countercyclical fiscal policy will boost investment in productivity-enhancing long-term…” Link

Tags: , , , ,

The Causal Impact of Education on Economic Growth: Evidence from U.S.

The Causal Impact of Education on Economic Growth: Evidence from U.S. Philippe Aghion, March 2009, Paper. “Should countries or regions (generically, “states”) invest more in education to promote economic growth? Policy makers often assert that if their state spends more on educating its population, incomes will grow sufficiently to more than recover the investment. Economists and others have proposed many channels through which education may affect growth–not merely the private returns to individuals’ greater human capital but also a variety of externalities…” Link

Tags: , ,

When Does Domestic Saving Matter for Economic Growth?

When Does Domestic Saving Matter for Economic Growth? Philippe Aghion and Diego Comin, January 4, 2009, Paper. “Can a country grow faster by saving more? We address this question both theoretically and empirically. In our theoretical model, growth results from innovations that allow local sectors to catch up with frontier technology. In poor countries, catching up requires the cooperation of a foreign investor who is familiar with the frontier technology and a domestic entrepreneur who is familiar with local conditions…” Link

Tags: , , ,

Exchange Rate Volatility and Productivity Growth: The Role of Financial Development

Exchange Rate Volatility and Productivity Growth: The Role of Financial Development. Philippe Aghion, Kenneth Rogoff, 2009, Paper. “This paper offers empirical evidence that real exchange rate volatility can have a significant impact on long-term rate of productivity growth, but the effect depends critically on a country’s level of financial development. For countries with relatively low levels of financial development, exchange rate volatility generally reduces growth, whereas for financially advanced countries, there is no significant effect. Our empirical analysis is based on an 83 country data set spanning the years 1960-2000…”  Link

Tags: , , , ,

The Relationship Between Health and Growth: When Lucas Meets Nelson-Phelps

The Relationship Between Health and Growth: When Lucas Meets Nelson-Phelps. Philippe Aghion, 2009, Paper. “This paper revisits the relationship between health and growth in light of modern endogenous growth theory. We propose an unified framework that encompasses the growth effects of both, the accumulation and the level of health. Based on cross-country regressions where we instrument for both variables, we find that a higher initial level and a higher rate of improvement in life expectancy, both have a significantly…” Link

Tags: ,

The Economics of Growth

The Economics of Growth. Philippe Aghion, December 19, 2008, Book. “This comprehensive introduction to economic growth presents the main facts and puzzles about growth, proposes simple methods and models needed to explain these facts, acquaints the reader with the most recent theoretical and empirical developments, and provides tools with which to analyze policy design. The treatment of growth theory is fully accessible to students with a background no more advanced than elementary calculus and probability theory…” Link

Tags: , , ,

Regulation and Distrust

Regulation and Distrust. Philippe Aghion and Andrei Shleifer, November 27, 2008, Paper. “In a cross-section of countries, government regulation is strongly negatively correlated with social capital. We document, and try to explain, this highly significant empirical correlation. The correlation works for a range of measures of social capital, from trust in others to trust in corporations and political institutions, as well as for a range of measures of regulation, from product markets, to labor markets, to judicial procedures…” Link

Tags: , ,

Innovation and Institutional Ownership

Innovation and Institutional Ownership. Philippe Aghion, November 17, 2008, Paper. “We find that institutional ownership in publicly traded companies is associated with more innovation (measured as cited-weighted patents), even after controlling for a possible endogeneity of institutional ownership. To explore the mechanism through which this link arises, we build a model that nests managerial laziness with career-concern considerations, where institutional ownership increases the incentives managers have to innovate by…” Link

Tags: ,