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The quantitative assessment of the global effects of climate change requires the construction of income projections spanning large time horizons. Exploiting the robust link between educational attainment, age structure dynamics and economic growth, we use population projections by age, sex and educational attainment to obtain income per capita paths to the year 2100 for 144 countries. Such a framework offers a powerful, consistent methodology which can be used to study of future environmental challenges and to address potential policy reactions.

We use Bayesian Model Averaging (BMA) to evaluate the robustness of determinants of economic growth in a new dataset of 255 European regions in the 1995-2005 period. We use three different specifications based on (1) the cross-section of regions, (2) the cross-section of regions with country fixed effects and (3) the cross-section of regions with a spatial autoregressive (SAR) structure. We investigate the existence of parameter heterogeneity by allowing for interactions of potential explanatory variables with geographical dummies as extra regressors. We find remarkable differences between the determinants of economic growth implied by differences between regions and those within regions of a given country. In the cross-section of regions, we find evidence for conditional convergence with speed around two percent. The convergence process between countries is dominated by the catching up process of regions in Central and Eastern Europe (CEE), whereas convergence within countries is mostly a characteristic of regions in old EU member states. We also find robust evidence of positive growth of capital cities, a highly educated workforce and a negative effect of population density.

"Recent studies found a robust positive correlation between the frequency of natural disasters and the long-run economic growth after conditioning for other determinants. This result is interpreted as evidence that disasters provide opportunities to update the capital stock and adopt new technologies, thus acting as some type of Schumpeterian creative destruction. The results of cross-country and panel data regressions indicate that the degree of catastrophic risk tends to have a negative effect on the volume of knowledge spillovers between industrialized and developing countries. Only countries with relatively high levels of development benefit from capital upgrading through trade after a natural catastrophe". ("JEL" O13, O30, F18) Copyright (c) 2007 Western Economic Association International.

In the light of modern theoretical studies, the negative relationship between output and unemployment may take a nonlinear form, in the sense that changes in output can cause asymmetric changes in the unemployment rate. A regime-dependent specification of Okun's law, where the inverse relationship between cyclical unemployment and cyclical GDP is allowed to differ across recessions and expansions, is estimated for the US economy. Using both the Hodrick-Prescott filter and a bivariate structural time series model to isolate the cyclical component of the variables of interest, the nonlinear specification is highly significant when tested against the linear alternative independently of the method used for extracting the cycle of unemployment and GDP. The estimation results imply that the contemporaneous effect of growth on unemployment is asymmetric and significantly higher in recessions than in expansions, and shocks to unemployment tend to be more persistent in the expansionary regime.

Reconstructions and projections of populations by age, sex, and educational attainment for 120 countries since 1970 are used to assess the global relationship between improvements in human capital and democracy. Democracy is measured by the Freedom House indicator of political rights. Similar to an earlier study on the effects of improving educational attainment on economic growth, the greater age detail of this new dataset resolves earlier ambiguities about the effect of improving education as assessed using a global set of national time series. The results show consistently strong effects of improving overall levels of educational attainment, of a narrowing gender gap in education, and of fertility declines and the subsequent changes in age structure on improvements in the democracy indicator. This global relationship is then applied to the Islamic Republic of Iran. Over the past two decades Iran has experienced the world's most rapid fertility decline associated with massive increases in female education. The results show that based on the experience of 120 countries since 1970, Iran has a high chance of significant movement toward more democracy over the following two decades. Copyright (c) 2010 The Population Council, Inc..

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