Abstract: We explore the role of public funds sharing in the framework of laboratory federalism, viewed as a learning process of policy innovation and imitation. In a model of decentralized, rich-to-poor redistribution with labor mobility, such a learning dynamics leads to the complete erosion of the welfare state. We show that suitably designed funds sharing schemes can correct this…
Abstract: When measuring multidimensional poverty it is reasonable to expect that the trade-offs between variable pairs can differ depending on whether the concerned pairs are complements or substitutes. Yet, currently existing approaches based on deprivation count distributions unrealistically assume that all pairs of variables are related in the same way, an unfortunate circumstance that undermines…
ABSTRACT: Adaptive learning (AL) takes over other features needed to generate a sizable term premium under rational expectations. Indeed, a time-varying term premium emerges in a first-order approximation of a DSGE model under AL. We estimate a real-time AL model that builds on Slobodyan and Wouters (2012a). Our extension disentangles the expectations hypothesis of the term structure (EH)…
This paper addresses the long-term impacts of climate change on wind speed and, therefore, on wind energy generation. A projection of wind speed was carried out for four selected wind farms in Spain, using an ensemble of three climate models, two scenarios (RCP 4.5 and 8.5) and two time periods (2018-2041 and 2042-2065) per plant….
Abstract: This paper adds the standard input–output linkages into a multi-sector endogenous growth model to study the interaction effects between linkages and technology adoption for aggregate productivity and for income per capita. We show that the greater the intensity with which a good is used as input by other sectors, the smaller are the technology…
Abstract Which are the factors affecting the long run sustainability of GDP growth? This paper discusses a potentially important one that has been disregarded so far: the shift in advanced economies from quantity to quality growth. First, the paper lays down a simple model introducing the quality dimension of consumption into the IPAT analytical framework….
Abstract In this paper a dynamic model of economic growth, tourism and environment is studied. The model considers tourists in the economy as optimizing agents, interacting with domestic consumers. The number of tourists arriving in the country follows the Tourism Are Life-cycle model with a tourism carrying capacity dependent on environmental quality. Tourism hurts environment and abatement activities have…
Abstract The appeal of the concept of perfectly competitive equilibrium (PCE), to describe the outcome of trade in competitive markets, relies on three assumptions: 1) in the absence of frictions, PCE is the result of the centralized or decentralized interaction of rational agents, 2) whenever the market is out of equilibrium, an adjustment process would…
Abstract: We analyze the effect of non-constant discounting on the sustainability of economic growth in a model with pollution and abatement. A balanced path equilibrium with decreasing pollution exists under plausible assumptions considering time-consistent agents. Compared to exponential discounting, the social optimum when consumers discount a non-constant rate shows greater abatement and consumption expenditure shares…
Abstract Spanish GDP grew at an average rate of 3.5% per year during the expansion of 1995- 2007, above the EU average of 2.2%. However, this growth was based on factor accumulation rather than productivity gains. In particular, TFP fell at an annual rate of 0.7%, while it increased at 0.4% in the EU and…
