A paradigm is presented in which both the extent of financial intermediation and rate economic growth are endogenously determined. Financial promotes because it allows a higher return to be earned on capital, turn provides means implement costly structures. Thus inextricably linked accord with Goldsmith-McKinnon-Shaw view development. The model also generates development cycle reminiscent Kuznet hypothesis. In particular, transition from primitive slow-growing economy developed fast-growing...

What is the relationship between markets and development? It argued that promote growth, growth in turn encourages formation of markets. Two models with endogenous market are presented to analyze this issue. The first examines role financial — banks stock play allocating funds highest valued use economic system. shown intermediation will arise under weak conditions. second focuses on supporting specialization activity. consequences perfect competition highlighted.

Electricity was born at the dawn of last century. Households were inundated with a flood new consumer durables. What impact this durable goods revolution? It is argued here that revolution conducive to liberating women from home. To analyse hypothesis, Beckerian model household production developed. must decide whether or not adopt technologies, and married woman should work. Can such help explain rise in female labour-force participation occurred century? Yes.

A Beckerian model of household production is developed to study the cyclical allocation capital and time between market home activities. The adopted framework treats business sectors symmetrically. In market, labor interacts with produce goods services, likewise at remaining (leisure) combined services. presented parameterized simulated see whether it can rationalize observed time, as well other stylized facts, for postwar U.S. economy.

Has there been an increase in positive assortative mating? Does mating contribute to household income inequality? Data from the United States Census Bureau suggests has a rise mating. Additionally, affects inequality. In particular, if matching 2005 between husbands and wives had random, instead of pattern observed data, then Gini coefficient would have fallen 0.43 0.34, so that inequality be smaller. Thus, is important for The high level married female labor-force participation this result.

An endogenous growth model is developed where each period firms invest in researching and developing new ideas. idea increases a firm's productivity. By how much depends on the technological propinquity between an line of business. Ideas can be bought sold market for patents. A firm sell that not relevant to its business or buy one if it fails innovate. The matched up with stylized facts about patents United States. analysis gauges efficiency patent affects growth.

Technological progress comes in waves. The British Industrial Revolution ( 1760 – 1850) ushered Cort’s puddling and rolling process for making iron, Crompton’s mule spinning cotton, the Watt steam engine. Second 1890 1930) witnessed rise of electricity, internal-combustion engine, chemical industry. birth information technology (IT) may herald start a Third Revolution. A new or product is often developed by single entrepreneur who initially finds it hard to get funds, develop product, find...

What caused the baby boom? And can it be explained within context of secular decline in fertility that has occurred over last 200 years? The hypothesis is that: (a) due to relentless rise real wages increased opportunity cost having children; (b) boom by an atypical burst technological progress household sector middle century. This lowered children. A model developed attempt account, quantitatively, for both and bust.

A paradigm is presented where both the extent of financial intermediation and rate economic growth are endogenously determined. Financial promotes because it allows a higher return to be earned on capital, in turn provides means implement costly structures. Thus, inextricably linked accord with Goldsmith-McKinnon-Shaw view development. The model also generates development cycle reminiscent Kuznets hypothesis. In particular, transition from primitive slow-growing economy developed...

To address how technological progress in financial intermediation affects the economy, a costly-state verification framework is embedded into standard growth model. The has two novel ingredients. First, firms differ risk/return combinations that they offer. Second, efficacy of monitoring depends upon amount resources invested activity. A theory firm size results. Undeserving are over-financed, deserving ones under-funded. Technological advance leads to more capital accumulation and...

Marriage has declined since 1960, with the drop being more significant for noncollege-educated individuals versus college-educated ones. Divorce increased, so noncollege-educated. Additionally, positive assortative mating risen. Income inequality among households also widened. A unified model of marriage, divorce, educational attainment, and married female labor-force participation is developed estimated to fit postwar US data. Two underlying driving forces are considered: technological...

Twelve percent of the Malawian population is HIV infected. Eighteen sexual encounters are casual. A condom used a third time. To analyze epidemic, choice‐theoretic general equilibrium search model constructed. In developed framework, people select between different practices while knowing inherent risk. The calibrated to study several policy interventions, namely, ART, circumcision, better condoms, and treatment other STDs. efficacy public depends upon induced behavioral changes effects....

What determines the technology that a country adopts? While there could be many factors, e¢ ciency of country’s …nancial system may play signi…cant role. To address this question, dynamic contract model is embedded into general equilibrium setting with competitive intermediation. The ability an intermediary to monitor and control cash ‡ows …rm plays important role in …rm’s decision adopt technology. Can such theory help explain

A prototypical vintage capital model of economic growth is developed, where the decision to replace old technologies with new ones modeled explicitly. Technological change investment specific. Depreciation in this environment an economic, not a physical, concept. The economy's balanced-growth paths and transitional dynamics are analyzed. markedly different from standard neoclassical model.

Between 1800 and 1940 the U.S. went through a dramatic demographic transition. In average woman had 7 children, 94 percent of population lived in rural areas. By birthed just 2 kids, only 43 populace country. The question is: What accounted for this shift landscape? answer given here is that technological progress agriculture manufacturing explains these facts.

According to Pareto (1896) , the distribution of income depends on “the nature people comprising a society, organization latter, and, also, in part, chance.” In model developed here “nature people” is captured by attitudes toward marriage, divorce, fertility, and children. Singles search for mates marriage market. Married agents bargain about work, quantity quality They can divorce. Social policies, such as child support requirements, reflect “organization (society).” Finally, “chance”...

A real business cycle model, with two types of agents, workers, and entrepreneurs, is simulated to see if it can account for some stylized facts characterizing postwar U.S. fluctuations, such as the countercyclical movement labor's share income acyclical behavior wages. It can. There exists an economy-wide market contingent claims. On this workers purchase insurance from through optimal labor contracts, against losses in due fluctuations. Insurance flows protecting aggregate cyclical risk...