On gender and growth: The role of intergenerational health externalities and women’s occupational constraints

This paper studies the growth effects of externalities associated with intergenerational health transmission, health persistence, and access to infrastructure (or lack thereof), which affects women's occupational choices. Following a brief review of the evidence on these issues, a gender-based overlapping generations (OLG) model of endogenous growth that captures these interactions is presented and its properties characterized. The endogeneity of mothers’ rearing time and rearing costs implies that improved access to infrastructure has in general an ambiguous effect on growth. Numerical experiments, based on a calibrated version of the model for low-income countries, show that it is possible for higher investment in infrastructure to actually reduce the steady-state growth rate. The possibility of multiple equilibria induced by an endogenous survival rate is also discussed, and so is the role of public policy in that context.

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Macroeconomics and Stagnation – Keynesian-Schumpeterian Wars

Policy makers in the advanced economies at the core of the global financial crisis can make the claim that they prevented a new “Great Depression”. However, recovery since the outbreak of the crisis more than five years ago has been sluggish and feeble. Since these macroeconomic outcomes have to some extent been shaped by policy mixes adopted in those economies in response to the crisis, the appropriateness of those policy choices is a question worth revisiting. This is particularly the case as one considers the hypothesis that a long-run trend toward stagnation may have already been at play during the pre-crisis period, even if temporarily countervailed by pervasive asset price booms.

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