The aim of this paper is to investigate the role of culture, viewed according to Throsby's defini... more The aim of this paper is to investigate the role of culture, viewed according to Throsby's definition of cultural capital (that is, an asset of tangible and intangible cultural expressions), in fostering economic growth. Recent literature in the field of cultural economics highlights a possible inversion of the usual causality relation, and culture can be seen as one of the engine of economic wealth. In this article we analyze one possible channel through which it may occur: human capital investment. Using a two-sectors endogenous growth model, the relation between cultural and human capital is deeply investigated.
Purpose -Despite the growing literature aimed at explaining how cultural and artistic production ... more Purpose -Despite the growing literature aimed at explaining how cultural and artistic production feeds economic growth, the causal relationships and interplays are not investigated in depth. In the attempt of filling this gap, the purpose of this paper is to examine arts, culture, and education within the framework of the New Growth Theory. Design/methodology/approach -Starting from the analysis of how culture may be at the root of a specific engine of economic growth, the paper presents a theoretical endogenous growth model driven by the combination of the investments in human and cultural capital. Findings -The paper shows that cultural investment has a positive impact on economic growth and on the level of income provided that the economy is sufficiently "culture-intensive", and that this effect is further magnified the more total factor productivity (TFP) is sensitive to the stock of cultural capital.
Negli ultimi anni la sponsorizzazione è diventata uno dei più importanti strumenti di promozione ... more Negli ultimi anni la sponsorizzazione è diventata uno dei più importanti strumenti di promozione commerciale utilizzato dalle imprese. Questo saggio sviluppa l'idea che la sponsorizzazione en-tri nella funzione di produzione come un tipo di investimento in capitale immateriale ...
Il presente lavoro di tesie stato svolto presso l'Istituto di Tecnologie Industriali e Autom... more Il presente lavoro di tesie stato svolto presso l'Istituto di Tecnologie Industriali e Automazione del Consiglio Nazionale delle Ricerche (ITIA-CNR), la cui attivita si colloca nella ricerca applicata per l'automazione industriale e per il sostegno dell'innovazione dell'impresa. Le problematiche su cui l'ITIA lavora variano dal campo della progettazione, alla robotica e l'automazione. All'interno dell'istituto opera il gruppo VME (Virtual Manufacturing Environment), che focalizza la propria attivita sullo studio, l'ideazione e la ...
We introduce an efficiency-wage mechanism into an innovation-driven growth model. Due to informat... more We introduce an efficiency-wage mechanism into an innovation-driven growth model. Due to informational problems, the labour market is segmented and homogeneous workers may be employed either in a non-competitive intermediate sector or in a competitive research one. We analyse the impact that variations in the monopoly power of the intermediate firms may have on unemployment, wage inequality and growth. We find that the lower the product market competition in the intermediate sector, the higher the research employment, the lower the intermediate sector employment, the higher the aggregate growth rate. Growth and inequality are negatively correlated whereas growth and unemployment are positively correlated. The last two results are obtained through numerical simulations. JEL: D43, D92, J41, O3
In questo lavoro abbiamo presentato un modello di crescita dove il livello dell'output viened... more In questo lavoro abbiamo presentato un modello di crescita dove il livello dell'output vienedeterminato grazie alla scelta di allocazione del tempo tra accumulazione di capitale umano ed attività direttamente produttiva. In questo modo il livello dell'output lungo il sentiero di crescita bilanciata dipende dal livello di capitale umano accumulato, oltre che dai parametri relativi ai fundamentals: crescita esogena della forza
The influence of the degree of competition in the goods market on growth is analyzed by developin... more The influence of the degree of competition in the goods market on growth is analyzed by developing an endogenous growth model with horizontal innovation. Product market competition is measured by (1- Lerner index) and depends on both the share of factor inputs in total income and on the elasticity of substitution across goods. We find that the shape of the
We introduce an efficiency-wage mechanism into an innovation-driven growth model. Due to informat... more We introduce an efficiency-wage mechanism into an innovation-driven growth model. Due to informational problems, the labour market is segmented and homogeneous workers may be employed either in a non-competitive intermediate sector or in a competitive research one. We analyse the impact that variations in the monopoly power of the intermediate firms may have on unemployment, wage inequality and growth. We find that the lower the product market competition in the intermediate sector, the higher the research employment, the lower the intermediate sector employment, the higher the aggregate growth rate. Growth and inequality are negatively correlated whereas growth and unemployment are positively correlated. The last two results are obtained through numerical simulations. JEL: D43, D92, J41, O3
This paper extends public spending-based growth theory along three directions: we assume a logist... more This paper extends public spending-based growth theory along three directions: we assume a logistic trajectory for the ratio of government expenditure to aggregate income, self-limiting population change, and exogenous technological progress. By focusing on the choices of a benevolent social planner we find that, if the inverse of the intertemporal elasticity of substitution in consumption is sufficiently high, the ratio
We embed the Uzawa-Lucas human capital accumulation technology into the Mankiw-Romer-Weil exogeno... more We embed the Uzawa-Lucas human capital accumulation technology into the Mankiw-Romer-Weil exogenous growth model. The paper is divided into two parts. In the first part we assume that the rate of technological progress is exogenous and deterministic and study the local dynamics of the model around its steady-state equilibrium. The first order conditions lead to a system of four nonlinear
This paper offers an alternative way, based on the logistic population growth hypothesis, to prod... more This paper offers an alternative way, based on the logistic population growth hypothesis, to produce transitional dynamics in the standard AK framework with an exogenous savings rate. In the model the growth rate of the aggregate stock of capital is independent of the evolution of population and always constant, whereas the growth rate of population, though independent of the law
This paper offers an alternative way, based on the logistic population growth hypothesis, to yiel... more This paper offers an alternative way, based on the logistic population growth hypothesis, to yield transitional dynamics in the standard AK model with exogenous savings rate. Within this framework, we show that the dynamics of the capital stock per person and its growth rate can be non-monotonic over time. Moreover, even in the presence of negative growth, the capital stock per-capita can converge to a strictly positive level (different from the initial level) when time goes to infinity. In general, the analysis allows us to conclude that the dynamics of the Solow-Swan model with linear technology and logistic population growth is richer than the one with exponential population growth.
This paper examines two possible sources of interaction between private and public capital in an ... more This paper examines two possible sources of interaction between private and public capital in an endogenous growth model with productive public investment, which is used as an input both in the production of final output and in the production of new public capital. On the one hand ,public investment and private capital are complementary with each other in the production of goods. On the other, they can be either complementary or substitutes in the production of new productive public capital .In our model private and public capital are two reproducible productive inputs interacting with each other in goods production and in productive public capital investment. The share of public capital devoted to output production can be exogenous or endogenous, and we consider a Cobb-Douglas and a more general CES aggregate production function. Our main results are that, when the share of public capital devoted to output production is exogenous along the balanced growth path equilibrium the common growth rate is a negative function of this share and a positive function of the degree of complementarity between the two forms of capital in infrastructure capital investment. When the sectoral allocation of productive public capital is endogenous, the main determinant of the economy's long run growth rate is, along with the model's preferences parameters, the public capital's share in GDP. Unlike existing literature (notably, Barro 1990), we find that the relationship linking the economy's growth rate and the public capital's share in GDP is U-shaped, rather than monotonically decreasing.
We embed the Uzawa-Lucas human capital accumulation technology into the Mankiw-Romer-Weil exogeno... more We embed the Uzawa-Lucas human capital accumulation technology into the Mankiw-Romer-Weil exogenous growth model. The paper is divided into two parts. In the first part we assume that the rate of technological progress is exogenous and deterministic and study the local dynamics of the model around its steady-state equilibrium. The first order conditions lead to a system of four nonlinear differential equations. By reducing the dimension of the system to three, we find that the equilibrium is a saddle point. If the equations system is attacked in its original dimension, and by making use of an arbitrage condition, we prove that the equilibrium is unstable. In the second part of the paper technology is assumed to be subject to random shocks driven by a geometric Brownian motion. Using the Hamilton-Jacobi-Bellman equation, and through numerical simulations, we discuss the effects of technology shocks on the optimal policies of consumption and the allocation of human capital across sectors.
The aim of this paper is to investigate the role of culture, viewed according to Throsby's defini... more The aim of this paper is to investigate the role of culture, viewed according to Throsby's definition of cultural capital (that is, an asset of tangible and intangible cultural expressions), in fostering economic growth. Recent literature in the field of cultural economics highlights a possible inversion of the usual causality relation, and culture can be seen as one of the engine of economic wealth. In this article we analyze one possible channel through which it may occur: human capital investment. Using a two-sectors endogenous growth model, the relation between cultural and human capital is deeply investigated.
Purpose -Despite the growing literature aimed at explaining how cultural and artistic production ... more Purpose -Despite the growing literature aimed at explaining how cultural and artistic production feeds economic growth, the causal relationships and interplays are not investigated in depth. In the attempt of filling this gap, the purpose of this paper is to examine arts, culture, and education within the framework of the New Growth Theory. Design/methodology/approach -Starting from the analysis of how culture may be at the root of a specific engine of economic growth, the paper presents a theoretical endogenous growth model driven by the combination of the investments in human and cultural capital. Findings -The paper shows that cultural investment has a positive impact on economic growth and on the level of income provided that the economy is sufficiently "culture-intensive", and that this effect is further magnified the more total factor productivity (TFP) is sensitive to the stock of cultural capital.
Negli ultimi anni la sponsorizzazione è diventata uno dei più importanti strumenti di promozione ... more Negli ultimi anni la sponsorizzazione è diventata uno dei più importanti strumenti di promozione commerciale utilizzato dalle imprese. Questo saggio sviluppa l'idea che la sponsorizzazione en-tri nella funzione di produzione come un tipo di investimento in capitale immateriale ...
Il presente lavoro di tesie stato svolto presso l'Istituto di Tecnologie Industriali e Autom... more Il presente lavoro di tesie stato svolto presso l'Istituto di Tecnologie Industriali e Automazione del Consiglio Nazionale delle Ricerche (ITIA-CNR), la cui attivita si colloca nella ricerca applicata per l'automazione industriale e per il sostegno dell'innovazione dell'impresa. Le problematiche su cui l'ITIA lavora variano dal campo della progettazione, alla robotica e l'automazione. All'interno dell'istituto opera il gruppo VME (Virtual Manufacturing Environment), che focalizza la propria attivita sullo studio, l'ideazione e la ...
We introduce an efficiency-wage mechanism into an innovation-driven growth model. Due to informat... more We introduce an efficiency-wage mechanism into an innovation-driven growth model. Due to informational problems, the labour market is segmented and homogeneous workers may be employed either in a non-competitive intermediate sector or in a competitive research one. We analyse the impact that variations in the monopoly power of the intermediate firms may have on unemployment, wage inequality and growth. We find that the lower the product market competition in the intermediate sector, the higher the research employment, the lower the intermediate sector employment, the higher the aggregate growth rate. Growth and inequality are negatively correlated whereas growth and unemployment are positively correlated. The last two results are obtained through numerical simulations. JEL: D43, D92, J41, O3
In questo lavoro abbiamo presentato un modello di crescita dove il livello dell'output viened... more In questo lavoro abbiamo presentato un modello di crescita dove il livello dell'output vienedeterminato grazie alla scelta di allocazione del tempo tra accumulazione di capitale umano ed attività direttamente produttiva. In questo modo il livello dell'output lungo il sentiero di crescita bilanciata dipende dal livello di capitale umano accumulato, oltre che dai parametri relativi ai fundamentals: crescita esogena della forza
The influence of the degree of competition in the goods market on growth is analyzed by developin... more The influence of the degree of competition in the goods market on growth is analyzed by developing an endogenous growth model with horizontal innovation. Product market competition is measured by (1- Lerner index) and depends on both the share of factor inputs in total income and on the elasticity of substitution across goods. We find that the shape of the
We introduce an efficiency-wage mechanism into an innovation-driven growth model. Due to informat... more We introduce an efficiency-wage mechanism into an innovation-driven growth model. Due to informational problems, the labour market is segmented and homogeneous workers may be employed either in a non-competitive intermediate sector or in a competitive research one. We analyse the impact that variations in the monopoly power of the intermediate firms may have on unemployment, wage inequality and growth. We find that the lower the product market competition in the intermediate sector, the higher the research employment, the lower the intermediate sector employment, the higher the aggregate growth rate. Growth and inequality are negatively correlated whereas growth and unemployment are positively correlated. The last two results are obtained through numerical simulations. JEL: D43, D92, J41, O3
This paper extends public spending-based growth theory along three directions: we assume a logist... more This paper extends public spending-based growth theory along three directions: we assume a logistic trajectory for the ratio of government expenditure to aggregate income, self-limiting population change, and exogenous technological progress. By focusing on the choices of a benevolent social planner we find that, if the inverse of the intertemporal elasticity of substitution in consumption is sufficiently high, the ratio
We embed the Uzawa-Lucas human capital accumulation technology into the Mankiw-Romer-Weil exogeno... more We embed the Uzawa-Lucas human capital accumulation technology into the Mankiw-Romer-Weil exogenous growth model. The paper is divided into two parts. In the first part we assume that the rate of technological progress is exogenous and deterministic and study the local dynamics of the model around its steady-state equilibrium. The first order conditions lead to a system of four nonlinear
This paper offers an alternative way, based on the logistic population growth hypothesis, to prod... more This paper offers an alternative way, based on the logistic population growth hypothesis, to produce transitional dynamics in the standard AK framework with an exogenous savings rate. In the model the growth rate of the aggregate stock of capital is independent of the evolution of population and always constant, whereas the growth rate of population, though independent of the law
This paper offers an alternative way, based on the logistic population growth hypothesis, to yiel... more This paper offers an alternative way, based on the logistic population growth hypothesis, to yield transitional dynamics in the standard AK model with exogenous savings rate. Within this framework, we show that the dynamics of the capital stock per person and its growth rate can be non-monotonic over time. Moreover, even in the presence of negative growth, the capital stock per-capita can converge to a strictly positive level (different from the initial level) when time goes to infinity. In general, the analysis allows us to conclude that the dynamics of the Solow-Swan model with linear technology and logistic population growth is richer than the one with exponential population growth.
This paper examines two possible sources of interaction between private and public capital in an ... more This paper examines two possible sources of interaction between private and public capital in an endogenous growth model with productive public investment, which is used as an input both in the production of final output and in the production of new public capital. On the one hand ,public investment and private capital are complementary with each other in the production of goods. On the other, they can be either complementary or substitutes in the production of new productive public capital .In our model private and public capital are two reproducible productive inputs interacting with each other in goods production and in productive public capital investment. The share of public capital devoted to output production can be exogenous or endogenous, and we consider a Cobb-Douglas and a more general CES aggregate production function. Our main results are that, when the share of public capital devoted to output production is exogenous along the balanced growth path equilibrium the common growth rate is a negative function of this share and a positive function of the degree of complementarity between the two forms of capital in infrastructure capital investment. When the sectoral allocation of productive public capital is endogenous, the main determinant of the economy's long run growth rate is, along with the model's preferences parameters, the public capital's share in GDP. Unlike existing literature (notably, Barro 1990), we find that the relationship linking the economy's growth rate and the public capital's share in GDP is U-shaped, rather than monotonically decreasing.
We embed the Uzawa-Lucas human capital accumulation technology into the Mankiw-Romer-Weil exogeno... more We embed the Uzawa-Lucas human capital accumulation technology into the Mankiw-Romer-Weil exogenous growth model. The paper is divided into two parts. In the first part we assume that the rate of technological progress is exogenous and deterministic and study the local dynamics of the model around its steady-state equilibrium. The first order conditions lead to a system of four nonlinear differential equations. By reducing the dimension of the system to three, we find that the equilibrium is a saddle point. If the equations system is attacked in its original dimension, and by making use of an arbitrage condition, we prove that the equilibrium is unstable. In the second part of the paper technology is assumed to be subject to random shocks driven by a geometric Brownian motion. Using the Hamilton-Jacobi-Bellman equation, and through numerical simulations, we discuss the effects of technology shocks on the optimal policies of consumption and the allocation of human capital across sectors.
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