Show simple item record

dc.contributor.author	Howitt, Peter
dc.contributor.author	Aghion, Philippe
dc.date.accessioned	2010-11-15T14:54:50Z
dc.date.issued	2006
dc.identifier.citation	Aghion, Philippe, and Peter Howitt. 2006. Appropriate growth policy: A unifying framework. Journal of the European Economic Association 4(2-3): 269-314.	en_US
dc.identifier.issn	1542-4774	en_US
dc.identifier.issn	1542-4766	en_US
dc.identifier.uri	http://nrs.harvard.edu/urn-3:HUL.InstRepos:4554121
dc.description.abstract	In this lecture, we use Schumpeterian growth theory, where growth comes from quality-improving innovations, to elaborate a theory of growth policy and to explain the growth gap between Europe and the US. Our theoretical apparatus systematizes the case-by-case approach to growth policy design. The emphasis is on three policy areas that are potentially relevant for growth in Europe, namely: competition and entry, education, and macropolicy. We argue that higher entry and exit (higher firm turnover) and increased emphasis on higher education are more growth-enhancing in countries that are closer to the technological frontier. We also argue that countercyclical budgetary policies are more growth-enhancing in countries with lower financial development. The analysis thus points to important interaction effects between policies and state variables, such as distance to frontier or financial development, in growth regressions. Finally, we argue that the other endogenous growth models, namely the AK and product variety models, fail to account for the evidence on the relationship between competition, education, volatility, and growth, and consequently cannot deliver relevant policy prescriptions in the three areas we consider.	en_US
dc.description.sponsorship	Economics	en_US
dc.language.iso	en_US	en_US
dc.publisher	MIT Press	en_US
dc.relation.isversionof	doi:10.1162/jeea.2006.4.2-3.269	en_US
dash.license	LAA
dc.title	Appropriate Growth Policy: A Unifying Framework	en_US
dc.type	Journal Article	en_US
dc.description.version	Version of Record	en_US
dc.relation.journal	Journal of the European Economic Association	en_US
dash.depositing.author	Aghion, Philippe
dc.date.available	2010-11-15T14:54:50Z

Files in this item

This item appears in the following Collection(s)

• FAS Scholarly Articles [5128]
  Peer reviewed scholarly articles from the Faculty of Arts and Sciences of Harvard University

Show simple item record

Contact administrator regarding this item (to report mistakes or request changes)