The Politicization of Growth Theory

In this essay I review the main features of neoclassical growth theory, with an eye to seeing what it has to say about the causes of wealth and poverty among nations. I argue that outside the OECD and a comparatively small circle of other countries, neoclassical models contribute little to identifying the deeper sources of cross-national patterns in growth and productivity. I then discuss recent advances in the empirical analysis of economic performance that feature the influence of politics, policy and institutional arrangements on entrepreneurship, innovation, investment and the efficiency with which factor inputs are transformed to output.neoclasssical growth theory; institutions and economic development and growth; politics and economic development and growth

Biogeography and Long-Run Economic Development

The transition from a hunter-gather economy to agricultural production, which made possible the endogenous technological progress that ultimately led to the industrial revolution, is one of the most important events in the thousands of years of humankind’s economic development. In this paper we present theory and evidence showing that exogenous geography and initial condition biogeography exerted decisive influence on the location and timing of transitions to sedentary agriculture, to complex social organization and, eventually, to modern industrial production. Evidence from a large cross-section of countries indicates that the effects of geographic and biogeographic endowments on contemporary levels of economic development are remarkably strong.Geography biogeography and growth; Economic development; Agricultural revolution; Institutions and growth; Plants animals and growth

Tax Toleration and Tax Compliance: How Government Affects the Propensity of Firms to Enter the Unofficial Economy

We propose a model of how government-supplied institutional benefits and the taxation and regulation of producers affect the propensity of private firms to enter the unofficial economy and evade taxation. Our analysis implies that the incentive of firms to produce underground depends on tax rates relative to firmspecific thresholds of tax toleration that are decisively affected by quality of governance — in particular by the presence of high-grade institutions delivering services that profit-maximizing firms deem worth paying for. Some key predictions of the model concerning the determinants of firms’ tax toleration and tax compliance receive broad support from empirical analyses of enterprise-level data from the World Bank’s World Business Environment Surveys.-

Labor market regimes and monetary policy

In this paper we propose straightforward extensions of multi-union, monopolistic competition models appearing in the recent literature on the macroeconomic effects of monetary policy. We extend these models from the Stackelberg equilibrium to the Nash equilibrium under variations in labor market regime in order to evaluate propositions about non-neutrality of monetary policy.policy game monetary policy neutrality trade union monopolistic competition

Three-D CFD Analysis of Hydrostatic Bearings

The hydrostatic bearing promises life and speed characteristics currently unachievable with rolling element bearings alone. In order to achieve the speed and life requirements of the next generation of rocket engines, turbopump manufacturers are proposing hydrostatic bearings to be used in place of, or in series with, rolling element bearings. The design of a hydrostatic bearing is dependent on accurate pressure in the bearing. The stiffness and damping of the hydrostatic bearing is very sensitive to the bearing recess pressure ratio. In the conventional approach, usually ad hoc assumptions were made in determining the bearing pressure of this approach is inherently incorrect. In the present paper, a more elaborate approach to obtain bearing pressure is used. The bearing pressure and complete flow features of the bearing are directly computed by solving the complete 3-D Navier Stokes equation. The code used in the present calculation is a modified version of REACT3D code. Several calculations have been performed for the hydrostatic bearing designed and tested at Texas A&M. Good agreement has been obtained between computed and test results. Detailed flow features in the bearing will also be described and discussed

Public Concern about Inflation and Unemployment In the United States: Trends, Correlates and Political Implications

Although former President Eisenhower's forecast turned out to be wrong, numerous empirical studies show that macroeconomic performance has an important impact on mass political support for elected officials. Moreover, during recent years economic issues (principally inflation, energy and unemployment) have overshadowed other problem areas as sources of public concern. Indeed, not since the Great Depression of the 1930s and the immediate post World War II reconversion scare has the state of the economy occupied such a salient place on the public agenda. As the Gallup Poll time-series data in Figure 1 show, in every year since the American withdrawal from Vietnam was completed more than 70 percent of the public identified an economic issue as "the most important problem facing the country today.

Presidential Popularity and Reputation

This paper reports on the results of an empirical study of relationships between the popularity of US presidents and economic variables. Traditionally, these relationships are based on the hypothesis that voters hold the incumbent President responsible for the economic situation. We derive an alternative specification of popularity, based on the hypothesis that political parties perform better on different issues. Empirical evidence turns out to be strongly in favour of our hypothesis. Our findings have important implications for studies on government behaviour in which it is assumed that one of the objectives of administrations is to maximise votes