A Contribution to the Empirics of Economic Growth

Mankiw, N. Gregory; Romer, David; Weil, David

doi:10.2307/2118477

Cited by 10,321 publications

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“…We estimate CCSW conditions for two large groups of 23 developed OECD countries 7 and 21 developing non-OECD economies 8 by taking into account one of the basic environmental factors that can be held accountable for the global warming phenomenon, namely CO 2 emissions. 9 Our results suggest that under the current production structure and CO 2 emission time paths, the current estimates of CO 2 damages, and the projected time paths for emission, 10 the measured CCSW are negative. When CO 2 emission time paths are considered as a policy parameter and their future time paths are adjusted so that emissions do not increase over time, then CCSW becomes positive.…”

Section: Introductionmentioning

confidence: 78%

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Productive Base Sustainability Under Climate Change: Theoretical Results and Empirical Evidence

Vouvaki

Xepapadeas

2009

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractClimate change is one of the most urgent and severe problems on the international agenda and one of the basic factors that determine sustainability conditions. This paper attempts to reveal the connection between productive base sustainability for two large groups of countries, developed and developing, and the state of the environment, which is proxied by the stock of carbon dioxide (CO2) which is mostly responsible for the creation of the global warming phenomenon. Three di¤erent policy scenaria for the evolution of global CO2 emissions empirically con.rm the strong association between the state of the environment and productive base sustainability, and provide the foundations for the formulation of sustainability policy.Paper submitted to the special issue "Discounting the Long-Run Future and Sustainable Development" JEL: Q01

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Section: Introductionmentioning

confidence: 78%

“…The second reason is more practical and has to do with the avaliability of data on CO 2 emissions for those two large groups of countries. 10 The Stern Report scenario corresponds to a 2:5% annual increase in CO 2 emissions.…”

Section: Introductionmentioning

confidence: 99%

Productive Base Sustainability Under Climate Change: Theoretical Results and Empirical Evidence

Vouvaki

Xepapadeas

2009

SSRN Journal

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“…From an empirical point of view, the choice between the two depends on the nature of available data (Mankiw et al, 1992). In this paper human capital can be better proxied by the average years of education of the working age population and thus we are interested in the expression in terms of human capital stock:…”

Section: The Augmented Solow Modelmentioning

confidence: 99%

“…Mankiw et al, 1992, Caselli et al, 1996and Bond et al 2001. More specifically, denoting the long-run estimated coefficient of the logarithm of the investment share with 1 θ and that of average years of schooling with 2 θ , the derived estimate of α is then equal to , where φˆ is the estimated average convergence coefficient.…”

Section: Discriminating Between Modelsmentioning

confidence: 99%

“…The AK model implies a permanent effect of the investment rate on long-run growth, and growth is therefore endogenous, while in the Solow model the impact of the investment rate is only transitory, the only driver of growth being therefore exogenous technological change. When a distinction between physical and human capital is made, the natural extensions of these models are, respectively, the augmented Solow model (Mankiw et al, 1992) and the two-sector AK (or Uzawa-Lucas) model (Uzawa, 1965, Lucas, 1988. Consistently, in the latter the process of accumulation of human capital is the main driver of growth, while in the former it has only a transitory impact on growth, permanently affecting only the level of the steady state.…”

Section: Introductionmentioning

confidence: 99%

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Solow or Lucas?: Testing Growth Models Using Panel Data from OECD Countries

Arnold

Bassanini

Scarpetta

2007

OECD Economics Department Working Papers

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JT03238194In this paper, we test whether the growth experience of a sample of OECD countries over the past three decades is more consistent with the human-capital augmented Solow model of exogenous growth, or with an endogenous growth model à la Uzawa-Lucas with constant returns to scale to "broad" (human and physical) capital. We exploit the different non-linear restrictions implied by these two models to discriminate between them. Using pooled crosscountry time-series data, we specify our growth regression by imposing cross-country homogeneity restrictions only on long-run coefficients, while letting the speed of convergence and short term dynamics to vary across countries. While there are indeed good reasons to believe in common long-run coefficients, given that OECD countries have access to common technologies and have intensive intra-industry trade and foreign direct investment, the theoretical models imply that the speed of convergence to the steady state differs across countries because of cross-country heterogeneity in population growth, technical change and progressiveness of the income tax. Therefore, standard dynamic fixed effect specifications, by imposing cross-country homogeneity restrictions on speed of convergence and short-run parameters, suffer from a heterogeneity bias and are not suited to implement our tests. The results suggest a strong effect of human capital accumulation: the estimated long-run effect on output of one additional year of education (about 6-9%) is also within the range of the estimates obtained in microeconomic analyses of the private returns to schooling. Our estimated speed of convergence is too fast to be compatible with the augmented Solow model, while is consistent with the Uzawa-Lucas model with constant returns to scale. This main finding is robust to several robustness tests.JEL classification: O11, O15, O41 Keywords: growth, human capital, panel data **************** Solow ou Lucas? Un test des modèles de croissance basé sur des données en panel pour les pays de l'OCDEDans cet article nous analysons le processus de croissance dans un groupe de pays de l'OCDE au cours des trois dernières décennies. Nous cherchons à établir si ce processus est plus conforme à un modèle de croissance exogène à la Solow ou bien à un modèle de croissance endogène à la Uzawa-Lucas avec des rendements d'échelle constants par rapport au capital au sens large (humain et physique). Pour cela, nous exploitons les contraintes non-linéaires propres aux deux modèles et nous étudions leur conformité avec les données. En utilisant des données de panel, nous spécifions une équation de croissance dans laquelle les paramètres de court terme et la vitesse de convergence varient d'un pays à l'autre, alors que seuls les paramètres de long terme sont supposés communs. Alors qu'il y a de bonnes raisons pour faire l'hypothèse que les coefficients à long terme sont égaux entre les pays de l'OCDE qui ont accès aux mêmes technologies et ont des relations commerciales étroites, les deux modèles théoriques sugg...

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The Feldstein-Horioka puzzle and capital mobility: a review

Kulasi²,

1998

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This paper reviews how economists responded to the Feldstein–Horioka (FH) view that a high saving‐investment association across OECD countries implied low capital mobility. This posed an uncomfortable puzzle since the conventional wisdom in most exchange rate and open‐economy macroeconomic models was that capital mobility was high. In the face of a variety of replications, the FH result of a high cross‐section association between saving and investment rates in OECD countries has remained remarkably robust. The debate over whether saving‐investment comovements are informative about capital mobility is still unresolved although the sceptics appear to be in the ascendancy. © 1998 John Wiley & Sons, Ltd.

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A Contribution to the Empirics of Economic Growth

Cited by 10,321 publications

References 14 publications

Productive Base Sustainability Under Climate Change: Theoretical Results and Empirical Evidence

Productive Base Sustainability Under Climate Change: Theoretical Results and Empirical Evidence

Solow or Lucas?: Testing Growth Models Using Panel Data from OECD Countries

The Feldstein-Horioka puzzle and capital mobility: a review

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