Modeling the diffusion of general purpose technologies in an evolutionary multi-sector framework

General purpose technologies (GPTs) are characterized by their pervasive use in the economy. The introduction of a new GPT (product innovation) as well as increasing productivity within a GPT-sector (as a consequence of process innovations) affect the economy in several ways. First, a new GPT offers the opportunity to produce goods by means of cheaper processes; secondly, technical change within the GPT sector influences productivity gains in related sectors. Also social consequences such as changing wage share, technical unemployment and transitional wage inequality can be observed. Finally, the emergence of a GPT often coincides with output decline, preceding economic growth. This paper introduces a multi-sector diffusion model to study these effects by combining classical economics and replicator-dynamics. Empirical evidence is given by the information and communication technology sector in Denmark and its impact on the economic structure from 1966 to 2007.     

Factor Substitution, Average Firm Size and Economic Growth

This paper extends the Lucas (1978, The Bell Journal of Economics 9(2), 508–523) analysis of firm size by taking into account a normalised aggregate CES production function. In a general equilibrium framework it is proved that there is an inverse relation between the elasticity of substitution and average firm size. If interpreted together with the fact that richer countries are characterised by a higher elasticity of substitution, this result can explain why the recent literature finds a positive association between the importance of SMEs in an economy and its stage of development, but seems to fail in finding causality between the two. Both have a common origin: a high value of the elasticity of substitution. This paper also provides a first empirical test of the theory proposed using cross-country data from both developed and developing countries.     

Attitudes towards capitalism in 34 countries on five continents

The author commissioned a survey on the image of capitalism in 34 countries. In only six of these countries – led by Poland and the United States – do pro-capitalist attitudes dominate. Although approval of capitalism increases when the word ‘capitalism’ is omitted (and instead only described), even then a positive attitude dominates in only seven of 34 countries. The most frequently mentioned criticisms of capitalism are that capitalism is dominated by the rich and that capitalism leads to growing inequality. Respondents with higher incomes and higher levels of education, men, and those who classified themselves as being on the right of the political spectrum are less anti-capitalist or are more pro-capitalist than the population at large in most countries. In 33 countries, anti-capitalists tend to be more conspiracy-minded than pro-capitalists.     

Factors determining the degree of gender equality within the European Union

Quality & Quantity - This paper aims to identify the major determinants of the structural differences in gender equality for EU countries, using tools from partial order theory on a system of 6...